KARACHI STOCK MARKET NEWS

7,502

karachistockmarket — Sun, 12 Jul 2009 13:23:57 +0000

Friday’s close saw the week ending on a positive note, with the KSE-100 index closing up at 7,502 on rumours of the new leverage product being announced soon.

News : With the phase out of Continuous Funding System (CFS) from the stock market, the board of directors of Karachi Stock Exchange (KSE) is set to meet next week to consider the new leverage product as well as the commencement of future contracts system in the market.“Board of Directors will meet on July 14th and most probably would give their nod to a new financing product to replace the CFS,”…About the future contracts system, stock brokers fraternity hoped that it would commence from August… Daily Times

Azgard Nine Company has announced to disinvest its shareholding in Pak American Fertilizers Limited (PAFL). In a meeting on Friday board of directors of the company decided that the company would explore the possibility of disinvesting up to 24.99 percent of its shareholding in PAFL (presently wholly-owned subsidiary). The company will offload its holding by way of an offer for sale … Daily Times

Market Low : 7,430.01 High : 7,517.43

Market Close : 7,502.66 — 72.65 points up

7,430

karachistockmarket — Thu, 09 Jul 2009 21:48:38 +0000

Market Low : 7,428.06 High : 7,522.17

Market Close : 7,430.11 — 46.10 points down

7,476

karachistockmarket — Wed, 08 Jul 2009 21:37:39 +0000

Market Low : 7,446.12 High : 7,550.04

Market Close : 7,476.11 — 73.26 points down

7,549

karachistockmarket — Tue, 07 Jul 2009 21:14:50 +0000

News : The earnings per share of National Bank of Pakistan will receive a significant boost from the dividend announced by National Investment Trust, analysts say. NIT has announced better than expected FY09 dividend of Rs 3.25/unit. National Bank of Pakistan (NBP) has 453 million NIT units. "The bank stands to record dividend income of Rs 1.47 billion (EPS impact: Rs 1.23) in CY09F," said Raza Jafri, an analyst at AKD Securities in a report. He said CY09F EPS estimates for NBP had risen to Rs 14.96 following the announcement of NIT’s payout… Daily Times

Market Low : 7,532.93 High : 7,661.90

Market Close : 7,549.37 — 10.88 points up

7,538 - WHT to be abolished

karachistockmarket — Mon, 06 Jul 2009 21:50:36 +0000

The KSE-100 index stayed positive all day and towards the close shot up to a high of 7,558. The market was boosted on rumours that withholding tax (WHT) would be abolished, which emanated during Tarin’s meeting at the Karachi Stock Exchange today. ( see below )

News : The Advisor to Prime Minister on Finance, Shaukat Tarin, has announced to abolish withholding tax applicable on the sale of shares. Briefing the media after his meeting with members of Karachi Stock Exchange (KSE) here on Monday he also announced that he would advise the Federal Board of Revenue (FBR) to convert the tax being paid under ‘Presumptive Tax Regime’ (PTR) to be made adjustable (as compared to minimum) with final tax liability of members. He also announced that the newly imposed federal excise duty (FED) would be collected directly from members, as prescribed by the FBR. However, the audit process would be made transparent and hassle-free. He said that FED would be collected from members on self-assessment basis. However, around 2.5 percent members from all three stock exchanges would be selected, on random basis, for audit,… Aaj News

The Karachi Stock Exchange (KSE) has reduced the marketable lot size to one share, effective from July 21, 2009. According to the KSE on Monday, the decision has been taken on the recommendation of the Development, Technology and Trading Affairs Committee and the board of directors to facilitate the market participants. However, this decision will not be applicable for orders entered during the pre-open session. As a consequence of the decision, the “odd lot market” will not operate as a separate market also effective from July 21, 2009... Source : The News

Market Low : 7,471.28 High : 7,558.42

Market Close : 7,538.49 – 67.21 points up

7,471

karachistockmarket — Sun, 05 Jul 2009 21:38:16 +0000

A positive week for the Karachi Stock market which closed at 7,471 on Friday, up 308 points.

Market Low : 7,452.86 High : 7,573.04

Market Close : 7,471.28 – 27.06 points down

7,498

karachistockmarket — Thu, 02 Jul 2009 21:48:49 +0000

The KSE-100 index shot up to make an intra-day high of 7,505 today. The market broke 7,500 for the first time since the 3rd week of April and the total volume of shares traded rose to 175.4 million. While there could be some weekend selling 2moro, there are enough catalysts to keep the market buoyant in the next few weeks, the monetary policy announcement, the begiining of the result season and the new leverage product coming soon, to name a few.

Market Low ; 7,270.72 High : 7,505.28

Market Close : 7,498.34 – 227.62 points up.

Board Meetings for July 2009

karachistockmarket — Wed, 01 Jul 2009 23:45:53 +0000

Fauji Fertilzer Bin Qasim (FFBL ) : 22nd

7,270

karachistockmarket — Wed, 01 Jul 2009 20:35:11 +0000

The Karachi Stock market started the first day of the new fiscal year closing up at 7,270. The market was boosted by the slash in the National Savings Schemes rates.

Market Low : 7,162.18 High : 7,292.66

Market Close : 7,270.72 — 108.54 points up

7,162

karachistockmarket — Tue, 30 Jun 2009 21:37:02 +0000

Dividends : PTCL : 15% Cash

News : The Karachi Stock Exchange on Tuesday informed its members that the collection of Capital Value Tax (CVT) has been withdrawn only on purchase value of shares of listed companies with effect from July 1st, 2009 on the trade/transactions carried out on and after such date as per amendments made in Income Tax Ordinance, 2001 through the Finance Bill, 2009.However, collection of CVT will remain applicable on purchase of Modaraba certificates or any instruments of redeemable capital listed on the registered stock exchanges in Pakistan….On the other hand, the market participants were still confused regarding the collection of FED on brokerage imposed in the budget 2009-10….the new tax will have to be collected from the beginning of the new fiscal year ie July 1st, however, it is still not announced whether the tax would be collected on exchange level or through brokers… Aaj News

Market Low : 7,156.15 High : 7,246.37

Market Close : 7,163.18 – 43.99 points down

7,206

karachistockmarket — Mon, 29 Jun 2009 21:06:29 +0000

Dividends : Exide Pakistan : 50% Cash EPS : 21.87

Board Meeting : PTCL - 2moro.

News : The International Monetary Fund (IMF), which is to quiz Pakistan’s economic managers, led by Advisor to Prime Minister on Finance, Shaukat Tarin, on July 3, 2009, in Istanbul, has sought detailed information on the amount used by the public fund (NIT)-SEF for interventions in the stock market, their impact, stocks holdings by foreigners of shares listed on the Karachi Stock Exchange (KSE), and status of reforms of broker financing (badla)… Aaj News

The Securities and Exchange Commission of Pakistan (SECP) has suspended the registration of five members of Karachi Stock Exchange (KSE) till the claims against them in the light of the investors’ complaints are ascertained and settled in accordance with law…Following the SECP decision, the Karachi Stock Exchange has also suspended the trading rights of the these five members with immediate effect and until further notice to protect the interests of the investors….The names of the KSE members whose trading rights and registration have been suspended are: Eastern Capital Limited; Prudential Securities Limited; ClikTrade Limited; MKA Securities (Private) Limited; and Capital One Equities Limited…Aaj News

Market Low : 7,163.04 High : 7,237.93

Market Close : 7,206.17 – 43.13 points up

7,163

karachistockmarket — Sun, 28 Jun 2009 12:16:46 +0000

On Friday, the KSE-100 index made an intra-day high of 7,217 and closed up at 7,163. The last two sessions have seen a significant rise in volume and foreign investment.

News : Massive foreign investment inflows took place in the stock market during the current week, which resulted in the highest level of net buying during the last 14 months…."The rising portfolio investment is not ‘motivated by market fundamentals,’ but is a deliberate move by the local big shots in the stock market to minimise their impairment losses as much as they can by June 30, 2009 when the current financial year closes," remarked a well-known analyst when asked for his comments on the encouraging trends in the stock market regarding portfolio investment….At a time, analysts said, when market fundamentals are not strong, the budget 2009-10 announced during the current month offered nothing to boost the stock market, but the rising interest of offshore investors in the local market is beyond comprehension…. Daily Times

The Karachi Stock Exchange is likely to propose to the SECP that the mark-up rate should be capped in the Margin Financing (MF) system and the financing facilities should be allowed in any other deliverable stocks, it is learnt. In its feedback to the Securities and Exchange Commission of Pakistan on the Consultative Group’s Concept Paper on Margin Financing, KSE is expected to propose that there should be 44 days lock-in-period for restricting financier to release the MF transactions, however, the financee may have the option to release such transactions as and when he requires,…Sources said KSE also favours that brokers as financiers should be allowed to finance other brokers of the same exchange for their respective clients and proprietary accounts and the mark-to-market losses should be managed by a central party or the system provider….The board’s meeting would be held in the first week of July 2009…. Aaj News

Market Low : 7,128.83 High : 7,217.97

Market Close : 7,163.04 – 34.21 points up.

7,128

karachistockmarket — Thu, 25 Jun 2009 21:46:05 +0000

Market Low : 7,020.07 High : 7,141.46

Market Close : 7,128.83 – 102.94 points up

7,025

karachistockmarket — Wed, 24 Jun 2009 21:51:16 +0000

Market Low : 6,988.65 High : 7,049.89

Market Close : 7,025.89 – 2.41 points up

7,023

karachistockmarket — Tue, 23 Jun 2009 21:41:09 +0000

News : The senior stock brokers would formulate the mechanism of collecting Federal Excise Duty (FED), which the government proposed to impose on services provided by the stock brokers at the rate of 16 per cent from July 1st. This was the outcome of a meeting that took place between the Karachi Stock Exchange delegation and adviser to finance minister Shaukat Tarin and his team at Islamabad on Tuesday.FED is not a levy like other taxes imposed on share transaction, … KSE brokers would device the mechanism of collecting FED and send it to government, to which the advisor has agreed… The News

Pakistan’s capital market has not witnessed any IPO (initial public offering) in the first six months of 2009 as no company offered shares to public during this period. "This is the worst-ever situation from which Pakistan capital market is passing through. It can be judged from the fact that no company has offered shares to public since January 2009," analysts said.This has happened for the first time in the last decade of Karachi bourse that no IPO hit the market in the first half of the calendar year. "Despite higher lending rates, new companies were not able to raise funds through initial offerings at the local exchanges mainly due to unwarranted closure of the market for three-and-a-half months, continuous selling by foreigner investors and weak economic fundamentals forcing issuers to delay their offerings,… Aaj News

The board of directors of Askari Bank Tuesday authorised the signing of a memorandum of understanding, in terms of which Mybank could merge and amalgamate into Askari Bank…Banks are now required to raise their minimum paid-up capital (free of losses) to Rs 6 billion by December 31, 2009, Rs 7 billion by December 31, 2010, Rs 8 billion by December 31, 2011, Rs 9 billion by December 31, 2012 and Rs 10 billion by December 31, 2013…Askari Bank said it would be applying to the SBP for obtaining approval to commence due diligence of Mybank…Daily Times

Market Low : 6,996.77 High : 7,085.20

Market Close : 7,023.48 – 33.78 points down.

7057

karachistockmarket — Mon, 22 Jun 2009 21:50:46 +0000

News : The members of the board of directors of Karachi Stock Exchange (KSE) are scheduled to meet the Advisor to Prime Minister on Finance, Shaukat Tarin, on Tuesday in Islamabad to discuss various issues regarding imposition of federal excise duty (FED) on brokerage and its collection….It is learnt that the KSE board would propose collection of FED at the exchange level rather than through brokers. It is also expected that the board will propose to abolish the condition of provision of details of all investors as it would be very difficult for brokers to provide the details of their investors….Aaj News

Market Low : 7,039.73 High : 7,133.53

Market Close : 7,057.26 – 17.53 points up.

7,039

karachistockmarket — Sun, 21 Jun 2009 21:03:26 +0000

News : The loss of ready board leverage is shrinking volumes and since the brokers’ livelihood depends to a great extent on the speculators and day traders, the slowdown in income stream is cause for concern. But the trouble is that 104 brokers had stood up in revolt against the age-old prevalent ‘badla’, CFS or more attractively named CFS Mk-II. They could not possibly step back and admit that it was a mistake to discard the bad ‘badla’, before introducing an investor-friendly and acceptable alternative…While stock brokers have sought comments and suggestions from the fraternity in regard to the proposed new product, a consultative committee formed by the Securities and Exchange Commission of Pakistan (SECP), under the chairmanship of Aftab Ahmed Diwan, the COO of Central Depository Company of Pakistan (CDC), has also feverishly worked to develop and distribute the contours of its version of a new product of ‘Margin Financing’ (MF)….On Friday, the SECP told stakeholders to submit comments by June 25th, on the first report on ‘Margin Financing’ released by the SECP’s consultative group on capital markets…. Dawn

Market Low : 6,980.03 High : 7,078.07

Market Close : 7,039.73 – 12.04 points down

7,051

karachistockmarket — Thu, 18 Jun 2009 21:39:15 +0000

News : Pakistan wracked by a war with Taliban insurgents and a record current-account deficit, is this year’s best bond investment, according to JP Morgan Chase & Co. indexes. Money managers say the stock market, the region’s cheapest, may be next…“We’re not seeing a major turnaround in the economy but as interest rates come off, that’s when you will see genuine interest coming back to stocks,” Nasim Beg who helps manage the equivalent of $160 million at Arif Habib Investments Ltd. in Karachi, said in an interview today. “So we expect good upside for stocks.”… Bloomberg

Market low : 7,026.73 High : 7,142.96

Market Close : 7,051.77 – 24.16 points down

7,075

karachistockmarket — Wed, 17 Jun 2009 21:31:30 +0000

Market Low : 6,872.96 High : 7,081.45

Market Close : 7,075.93 – 202.97 points up

6,872

karachistockmarket — Tue, 16 Jun 2009 21:33:10 +0000

The Karachi Stock market got another bashing today and made a low of 6,855. Breaking 6,800 will lead to further downside and there are no real positive triggers on the horizon until the new leverage product comes into play & a cut in interest rates. It could be time to reach for the proverbial Vaseline jar….

News : The Oil Marketing Companies (OMCs) have announced increase in furnace oil price by Rs 4,000 per tonne, dealers said. The OMCs on Monday officially announced changes in furnace oil price and started supply of furnace oil on new rates with immediate effect, they added. According to dealers, the companies including Pakistan State Oil, Caltex and Shell have announced increase of Rs 4,000-4,341 per tonne in furnace oil price. With the current surge, furnace oil price has touched Rs 39,500-40,000 per tonne in the local market… Aaj News

The following is an article well worth reading written by the Director of Financial Services Tax with KPMG in Ireland…. "Capital gains tax (CGT) exemption on shares should be rationalised and dividend distributions by companies should be exempted. CGT exemption on shares should be available only where shares are disposed of after being held for one year. This exemption should be proportionately reduced and capital gains derived on sale of shares disposed of after being held for less than 3 months should be taxed at full rate.

The above will discourage people from investing for short term and will induce them to hold shares for longer term. Consequently, it will bring only the genuine investors to stock exchange and will filter out those who are there to make money overnight. This will bring the much needed stability to stock exchange index movements which will then reflect the true state of the country’s economy….The way our stock market works, it is certainly not a barometer of investment. In fact the stock market in Pakistan is nothing but a sophisticated casino of the West; the only difference is that income earned in a casino is subject to tax… Daily Times

Market Low : 6,855.08 High : 6,953.09

Market Close : 6,872.96 — 80.13 points down

6,953

karachistockmarket — Mon, 15 Jun 2009 21:02:18 +0000

In the first session after the Budget for 2009-10, the KSE-100 index got bashed and closed down by a hundred points.

News : Habib Bank Ltd., Pakistan’s second-biggest by assets, withdrew from bidding for shares of RBS Pakistan. “Habib Bank conducted the due diligence,” it said in a statement to the stock exchange today. “After careful consideration, Habib Bank decided not to participate in the bidding.” It didn’t give a reason. MCB Bank Ltd., the biggest by market value, JS Bank Ltd., a Pakistani lender, and Orascom International Investment Holdings are competing for the business. RBS Pakistan formerly belonged to ABN Amro Holding N.V….Source : Bloomberg

Doubts over the ‘timing and nature’ of the external financing that Pakistan is banking on to cover its fiscal deficit need to be removed before any review of its lowly soverign credit rating can take place, an analyst for Moody’s Investor Services said on Monday…."We recognise the improvement in terms of sovereign ratings but we need more reassurance of the timing and nature of the external financing," said Aninda Mitra, Moody’s sovereign analyst for Pakistan… Aaj News

The Karachi Electric Supply Company (KESC) will issue 4.081 billion right shares at Rs 3.5 per share to generate Rs 14.286 billion to partly finance equity component of new generation projects and capital requirements….The right shares will be offered to ordinary share holders at the rate 31 percent of their existing shareholding in the company...Aaj News

Market Low : 6,937.76 High : 7,100.19

Market Close : 6,953.09 – 103.22 points down

The Budget for the Fiscal year 2009 - 2010

karachistockmarket — Sun, 14 Jun 2009 16:55:31 +0000

The new Budget for the Fiscal year 2009-10 announced yesterday has proved to be a non-event for the stock exchanges in Pakistan. While there are some benefits for the textile and cement sector (reduced FED on cement from Rs900 per metric ton to Rs700 per metric ton.), a 16 percent federal excise duty (FED) would be charged on fees charged by banks, stock brokers and insurance companies. More details will follow…

Pakistan will scrap a 0.02 percent capital value tax (CVT) on the purchase of shares while imposing a new tax on brokers’ commissions, a government adviser said on Sunday… Aaj News

The text of the Budget speech of Minister of State for Finance and Economic Affairs, Hina Rabbani Khar in the National Assembly here on Saturday: The Nation

7,059

karachistockmarket — Fri, 12 Jun 2009 21:49:55 +0000

News : The State Bank of Pakistan (SBP) is to rescue the Bank of Punjab (BoP) by providing Rs 10 billion as bridge financing, as the bank has been unable to comply with the regulatory Capital Adequacy Requirement (CAR) of 9 percent as on December 31, 2008….The BoP is presently facing a shortfall of about Rs 20 billion to comply with the regulatory terms and conditions. Sources said that the State Bank had extensive deliberations with Punjab government on this serious regulatory lapse, and the later agreed to inject Rs 10 billion to strengthen the capital requirements of the bank…Aaj News

Market Low : 7,039.62 High : 7,138.17

Market Close : 7,059.48 — 32.48 points down

7,091

karachistockmarket — Thu, 11 Jun 2009 21:46:51 +0000

Market Low : 7,034.48 High : 7,125.61

Market Close : 7,091.96 — 44.71 points up

7,047

karachistockmarket — Wed, 10 Jun 2009 20:40:24 +0000

Market Low : 7,031.56 High : 7,159.21

Market Close : 7,047.25 — 39.53 points down

7,086

karachistockmarket — Tue, 09 Jun 2009 21:45:46 +0000

The KSE-100 index shot up above 7k on the Consultative Group on capital markets report on margin financing. After many days of getting reamed, the index closed up 2.8% at 7,086. Oil closed above $70 for the first time this year.

News : The Consultative Group (CG) on capital markets has recommended that the introduction of ‘Margin Financing’ (MF) would cater to the financing needs of the brokerage houses and their clients. These recommendations were given by the CG in its first report on ‘Margin Financing’ submitted to the Securities and Exchange Commission of Pakistan (SECP)… Aaj News

Market Low : 6,892 High : 7,103.32

Market Close : 7,086.78 — 194.78 points up

6,892

karachistockmarket — Mon, 08 Jun 2009 21:58:34 +0000

Market Low : 6,805.90 High : 6,969.89

Market Close : 6,892 — 2.62 points down

6,894

karachistockmarket — Fri, 05 Jun 2009 21:42:20 +0000

The Karachi Stock market finally broke a 5 session downward spiral to close marginally up at 6,894. It made a high at 6,978, but could not sustain its gains. Foreign selling was at its heaviest for the week with over $8 million worth of shares sold today. It’s possible there could be some pullback next week.

Dividends : Bank of Punjab : EPS : -19.02

News : The Petroleum Ministry and the Oil and Gas Development Company Limited (OGDC) have developed a consensus on $ 3 per million British Thermal Unit (MMBTU) maximum wellhead gas price of Qadirpur gas field. The $ 3 per MMBTU wellhead gas price is calculated at $ 400 per ton high sulphur furnace oil (HSFO), a maximum limit for wellhead gas price discount of Qadirpur gas field.The Petroleum Ministry will move a summary to Economic Co-ordination Committee (ECC) of the Cabinet for formal approval. At present, wellhead gas price of other gas fields in Pakistan ranges between $ 2.4 and $ 4.6 per MMBTU. Following an increase in wellhead gas prices of other gas fields, OGDC had requested the Petroleum Ministry to enhance the wellhead gas price of Qadirpur gas field….Aaj News

The State Bank of Pakistan (SBP) has granted in principle approval to JS Bank Limited, in place of Jahangir Siddiqui and Company Limited, to bid for the acquisition of the entire shareholding of ABN Amro Bank NV in the Royal Bank of Scotland in Pakistan (RBS Pakistan)… In this regard, the directors of JS Bank held an emergency meeting to review the said acquisition opportunity, and concluded that this opportunity presents an excellent strategic fit with long-term growth objectives of JS Bank.To this end, the Board of Directors of the bank authorised the management to submit a binding bid to the Royal Bank of Scotland Group plc… Aaj News

Market Low : 6,850.67 High : 6,978.49

Market Close : 6,894.62 — 16.48 points up

6,878

karachistockmarket — Thu, 04 Jun 2009 21:47:57 +0000

The KSE-100 index has been getting fucked shapeless since last Friday and is down nearly 400 points on rumours of brokerage houses being taxed in the upcoming budget. The market has not closed at this index level since March 31st and could continue to get buggered further downwards. The absence of a ‘leverage ‘ product ( like badla ) is not helping matters either.

News : The Dow Jones Indexes, a leading global index provider and the Federation of Euro-Asian Stock Exchanges (FEAS) plan to launch the Dow Jones FEAS Indexes on Friday (June 05), which will include the Karachi Stock Exchange (KSE). According to information sent to KSE on Wednesday, this is the first time that indexes are created to measure the performance of companies across the Euro-Asian region. The three indexes that are being launched on June 05, are a composite, and two regional sub-indexes. The Dow Jones FEAS Indexes are designed to underlie index-linked investment products such as funds and structured products. The Dow Jones FEAS Composite Index currently includes component stocks of 10 of the 32 member states of the Federation of Euro-Asian Stock Exchanges.

The exchanges are: Abu Dhabi (UAE), Amman (Jordan), Bahrain (Kingdom of Bahrain), Belgrade (Serbia), Bulgaria (Bulgaria), Istanbul (Turkey), Karachi (Pakistan), Macedonia (Republic of Macedonia), Muscat (Oman), and Zagreb (Croatia)…Aaj News

6,989

karachistockmarket — Wed, 03 Jun 2009 21:40:37 +0000

Market Low : 6,964.42 High : 7,184.31

Market Close : 6,989.94 — 135.17 points down