Identifier
Created
Classification
Origin
09KARACHI169
2009-05-13 06:17:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Consulate Karachi
Cable title:  

KARACHI - STOCK EXCHANGE SHOWS LITTLE CHANGE

Tags:  EFIN ECON PK 
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VZCZCXRO2881
RR RUEHLH RUEHPW
DE RUEHKP #0169 1330617
ZNR UUUUU ZZH
R 130617Z MAY 09
FM AMCONSUL KARACHI
TO RUEHC/SECSTATE WASHDC 1085
INFO RUEHIL/AMEMBASSY ISLAMABAD 0546
RUEHLO/AMEMBASSY LONDON 0331
RUEHBUL/AMEMBASSY KABUL 0289
RUEHNE/AMEMBASSY NEW DELHI 1879
RUEHPW/AMCONSUL PESHAWAR 4621
RUEHLH/AMCONSUL LAHORE 2738
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEAIIA/CIA WASHDC
RUMICEA/USCENTCOM INTEL CEN MACDILL AFB FL
RUEKJCS/SECDEF WASHINGTON DC
RHEHAAA/NSC WASHINGTON DC
RHMFISS/JOINT STAFF WASHINGTON DC
UNCLAS KARACHI 000169 

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: EFIN ECON PK
SUBJECT: KARACHI - STOCK EXCHANGE SHOWS LITTLE CHANGE

UNCLAS KARACHI 000169

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: EFIN ECON PK
SUBJECT: KARACHI - STOCK EXCHANGE SHOWS LITTLE CHANGE


1. (SBU) Summary: The Karachi Stock Exchange (KSE) - 100 Index
ended the week of May 8 at 7,129.51, essentially flat over the
previous week's close of 7,198.68. Overall market capitalization
decreased slightly to $26.41 billion from $26.66 billion, with net
foreign portfolio investment outflow of $8.8 million. Fears
regarding security concerns in the country and possible clashes
between the political groups in Karachi on May 12 appeared to drive
the market activity. End Summary


2. (U) The KSE-100 index ended May 8 at 7,129.51 - less than one
percent below its April 30 close. (Note: May 1 was a Pakistani
holiday, and the KSE was closed. End note.) Overall market
capitalization dropped from $26.66 billion to $26.41 billion. The
net foreign portfolio investment outflow was $8.8 million. Volume
of shares traded was 455 million. The banking, energy, fertilizer,
and cement sectors continue to be among the top performers. (Note:
The KSE-100 Index comprises the top company from each of the 34
sectors on the KSE, in terms of market capitalization. An
additional 66 companies are selected for the index based on market
capitalization ranking. End note.)


3. (SBU) Uncertainty regarding the law and order situation,
especially the army operation in Swat and other parts of northern
Pakistan and the anticipation of violence in Karachi on May 12, left
investors cautious. Interlocutors, such Arif Habib, chairman of
Arif Habib Investments, told post that concerns regarding the
security situation kept investors nervous and reluctant to invest.
Habib, however, believes increased U.S. foreign assistance and
positive macroeconomic indicators will generate buying interest. He
predicted the market will rebound once the law and order situation
is stabilized.


4. (SBU) Comment: Security concerns will remain the major driver
of the KSE in the short term. There may be minor swings as
investors attempt to capitalize on undervalued stocks, but the
security situation will be a determining market force for some time.
End comment.


FAKAN