SECTORAL INTRODUCTION OF KARACHI STOCK EXCHANGE

AATIF IQBAL
15912
MANAGERIAL ECONOMICS REPORT
SUBMITTED TO: Ms. SABEEN ANWAR

TEXTILE SECTOR
Pakistans textile industry is a major contributor to the national economy in
terms of
Exports and employment. Pakistan holds the distinction of being the worlds
4th
Largest producer of cotton as well as the 3rd largest consumer in the world.
Textile sector is considered as the backbone of the economy.
Over 29% of all companies listed on the Karachi Stock Exchange
(KSE) may belong to the textile sector, but a majority of these stocks are
illiquid. That is, out of 582 companies listed on KSE, 178 companies belong
to Textile based companies.
Textile sector provides employment to the 30% of countrys workforce.
Here are some facts and figures of textile industry in Pakistan.
Major Statistics
Earnings per share after tax
Return on assets
Return on equity

5.34
5.40
14.64

FOOD SECTOR

Food sector includes 53 Companies listed on KSE.it is providing Earning per

share after tax of 12.56
The bulk of food businesses are either small and medium organizations, or
private limited companies. Publicly-listed food companies consist largely of
sugar mills. The analysis being presented here is based on the functioning of
publicly listed food corporations.
The food industry works in four phases; production, process, transportation
and distribution.
Despite the fact that fertilizing companies are very few in Pakistan, Having
only 13 fertilizing plants, the fertilizer industry has remained the best
performer at the capital market, as it has surpassed all sectors in terms of
paying return on equity to its shareholders.
Giants like Unilever, Nestle, National food; Engro majorly has dominance over
food sector (food items other than sugar, fertilizing etc.) in terms of stocks
trading. Whereas apart from stock trading sugar mills have also strong hold
in this sector which can be seen in the following chart. It represents the
divisions in the food sector of Pakistan with respect to their quantities across
Pakistan.
Grains & Grain Products ( 25 )
Pulses ( 34 )
Rice ( 863 )
Wheat ( 17 )
Fertilizer (13)

Sugar Mills
Pakistan is the sixth largest producer of sugarcane and 12th largest producer
of refined sugar in the world. The Sugar industry in Pakistan is the Second
largest agro based industry after Textiles Pakistan is an important cane
producing country and is ranked fifth in world cane acreage and 15th in
sugar production. Sugar mills amount up to 190 mills across the country out
of which only 32 companies are listed on KSE.

Major Statistics
Return on equity
Return on assets
Earnings per share after tax

43.18
12.98
2.47

Chemicals, chemical products and Pharmaceuticals Sector

34 companies are listed on KSE.
Chemical industry of Pakistan can be classified into two sectors.
1) The primary sector
2) The secondary sector.
Primary sector industries are at a large-scale. They are capital intensive
industries that comprise refineries, natural gas, petrochemicals, metallurgical
and projects based on mineral. They also supply their products to the
secondary chemical industry.
Secondary industries are based on products which are either derived
from primary sector of industries, or other different sources of raw materials.
These industries are less capital intensive and they are based on high,
medium or less advanced technologies.
Major Statistics
Earnings per share after tax
Return on assets
Return on equity

7.44
16.25
45.77

Other Non-Metallic Mineral Products Sector

There are 35 companies listed on KSE relating to the production of cement
and other non-mineral products.

i) Cement
Pakistan cement industry is considered to be one of the key drivers of
the countrys economy. With government mega projects providing much
incentive, many local producers are putting ambitious expansions in
place. However, the industry still faces a number of key challenges,
particularly in light of forecast output surpluses. Increasing per capita
consumption, tapping new export markets and dealing with high energy
costs all remain areas that need to be addressed.
According to a recent research report cement industry grew by 93 per
cent to Rs30.9 billion, against Rs16 billion in 2012

Major Statistics
Return on assets
Return on equity
Earnings per share after tax

0.65
1.52
0.05

ii) Mineral Products

Reportedly, Pakistan has around 5000 operational mines of different
sizes, employing nearly 300,000 workers. The abundantly found metallic
minerals in Pakistan include copper, gold, bauxite, lead, zinc, iron and
chromite. In addition, large reported reserves of non-metallic minerals
comprising salt, gypsum, clays, barite, phosphate, dolomite and
limestone. Of the 92 known minerals in the country, 58 are commercially
exploited.
Major Statistics
Earnings per share after tax
Return on assets
Return on equity

1.35
5.62
14.12

Motor Vehicles, Trailers and Auto parts Sector

This sector is comprised of 15 companies listed on KSE. The automotive
sector includes the following major sub-sectors:
(a) automobiles/cars,
(b) motorcycles/rickshaws,
(c) tractors,
(d) trucks/buses/ trailers.
Within each of these there are assemblers and parts manufacturers
respectively.
There are three major passenger car assemblers in the market;
1. Pak Suzuki with a market share of 53%
2. Indus Motors with market share of 36%
3. Honda Atlas with 14% of
market share

Over all Major Statistics

Earnings per share after tax
Return on assets
Return on equity

9.28
11.53
24.36

Fuel & Energy Sector

This sector is to most dynamic and one of the core industrial sectors all
over the world. Karachi Stock Exchange has 14 companies listed in this
sector.
Here is the Govt. share in the Oil sector.

Major players of the sector, which dominate not on their sector but the
overall KSE tradings are;
1. Oil Gas Development Corporation Limited ( OGDCL)
2. Pakistan State Oil (PSO)
3. Pakistan Petroleum Limited (PPL)

Major Statistics
Earnings per share after tax
Return on assets
Return on equity

4.29
9.69
31.11

Information, Comm. and Transport Services (Service Sector)

i.
INFORMATION and telecommunication
Pakistans telecom market had been struggling for a long time with the
transition from a regulated state-owned monopoly to a deregulated
competitive structure.
But with the granting of 3G and 4G licenses, share prices and market equity
has boosted of these companies. Major participants of the sector are;
1. PAKD
(Pak Datacom Limited)
2. PTC
(Pakistan telecommunication Limited)
3. TELE
(Telecard Limited)
4. WTCL
( Wateen Telecom Limited)
5. WTL
(World Call Telecom Limited)
ii.
ii.
ii.
ii.
ii.
ii.
ii.
ii.
ii.
ii.
ii.
ii.
ii.
ii.
ii.
Transportation
Industrial transportation sector in KSE has only four companies registered.
This includes;
Pakistan International Bulk Terminal Limited
Pakistan International Container Terminal Limited
Pakistan National Shipping Corporation Limited
Pan Islamic Steamship Company Limited

iii.

Others

The growth rate of services sector is higher than the growth rate of
agriculture and the industrial sector and it now accounts for one third of total
employment. It also provides essential inputs to the agriculture sector and
the manufacturing sector.
It is because of its strong linkages with other sectors of the economy that the
growth of the services sector can be taken as an indicator of the strong
potential for overall economic growth.
The service sector in Pakistan has grown faster than agriculture and
industry. That is due to fast growth in the communication, financial services,
business services (IT) and community services (education and health). The
remaining sectors grew at a constant or trend growth rate. The paper shows
that factors such as high income elasticity of demand and increased input
usage of services by other sectors have played an important part in
elevating services growth.

Over all Sectors Major Statistics

Earnings per share after tax -1.81
Return on assets
-3.01
Return on equity
-15.66

Paper, Paperboard and Products Sector

In 1947 when Pakistan came into existence, there was not a single plant to
manufacture paper in the country. Pakistan Industrial Development
Corporation (PIDC) was set up for the establishment of different industries
including paper mill in public sector. Now, this industry has different units
across the country producing various grades of papers, using local and
imported raw materials.
There are four companies listed on KSE which are;
Abson industries Limited
Century Paper and Board Mills Limited
Pakistan Paper Products Limited
Security Paper Limited
Here is the industry chart of Pakistan

Types of paper Produced in Pakistan

Writing and printing paper
Packaging board
Liner board (A type of paperboard used in making corrugated cartons)
Corrugate medium
Continuous computer reels
Tissue and Security/banknote paper
Major Statistics
Earnings per share after tax
Return on assets
Return on equity

-1.52
0.23
0.38

COKE & REFINED PETROLEUM PRODUCTS Sector

Pet coke is a by-product of the oil refining process. This sector includes 9
firms listed on KSE. Which comprises of giants like PSO, Shell, Byco
petroleum, Attock petroleum and refinery. These are the firms which have
major impact on daily trading of not only on their own sector as well as other
sectors too.
Major Statistics
Earnings per share after tax
Return on assets
Return on equity

24.28
15.85
46.60

Electrical Machinery and Apparatus Sector

In total there are 13 firms listed on KSE. Out of which 3 firms belongs to
Electronic and Electrical Goods, whereas 11 firms are related to Engineering
oriented products and services.
Major Statistics
Earnings per share after tax
Return on assets
Return on equity

-6.80
-2.66
-8.19

Other Services Sector

This sector includes firms serving different nature of services or products.
Firms in this sector include 10 firms which are;
i.
Dadabhoy Construction Tech. Ltd.
ii.
Dream world Ltd.
iii.
Gammon Pakistan Ltd.
iv.
Haydari Construction Co. Ltd.
v.
IBL HealthCare Ltd.
vi.
Javedan Corporation Ltd.
vii.
Pace (Pakistan) Ltd.
viii. Pakistan Hotels Developers Ltd.
ix.
Pakistan Services Ltd.
x.
Shifa International Hospitals Ltd.
Major Statistics
Earnings per share after tax
Return on assets
Return on equity

-4.83
-4.34
-5.74