Indus Motors Co. Ltd (INDU) : 19th

Oil & Gas Development Company Ltd (OGDC ) : 20th

Allied Bank Ltd. (ABL)

Packages Ltd. (PKGS) : 21st

ICI Pakistan (ICI)

Pakistan Refinery Ltd. (PRL)

Lucky Cement (LUCK)

Muslim Commercial Bank Ltd (MCB) : 22nd

Arif Habib Bank Ltd (AHBL) : 23rd

Kot Addu Power Co. (KAPCO) : 28th

The Karachi Stock Exchange (KSE) has carried out the exercise of re-composition of KSE-30 Index for the review period from January 1, 2008 to June 30, 2008. The recomposed KSE-30 index will be implemented from August 15, 2008.

Inclusions :  Azgard Nine Limited + Arif Habib Ltd + Netsol Technologies Ltd + Pervez Ahmed Securities Ltd

Exclusions : Javed Omer Vohra & Company Ltd + Faysal Bank Limited + National Refinery Limited + ICI Pakistan Limited.

After the re-composition of the index the companies included in the re-composed KSE-30 index are :

1. MCB Bank Ltd
   
2. Oil and Gas Development Company Limited
3. Jahangir Siddiqui & Co Limited
4. Pakistan Petroleum Limited
5. Fauji Fertiliser Company Limited
6. Pakistan Oilfields Limited
7. Pakistan State Oil Company Limited
8. National Bank of Pakistan
9. United Bank Limited
10. Engro Chemical Pakistan Limited
11. Pakistan Telecommunication Company Limited
12. The Hub Power Company Limited
13.  Adamjee Insurance Company Limited
14.  Habib Bank Limited
15.  Arif Habib Securities Limited
16.  EFU General Insurance Limited
17.  Lucky Cement Limited
18.  Bank Alfalah Limited
19.  Fauji Fertiliser Bin Qasim Limited
20.  Azgard Nine Limited
21.  NIB Bank Limited
22.  DG Khan Cement Company Limited
23.  Askari Bank Limited
24.  The Bank of Punjab
25.  Nishat Mills Limited
26.  Packages Limited
27.  Attock Refinery Limited
28.  Netsol Technologies Limited
29.  Arif Habib Limited
30.  Pervez Ahmed Securities Limited

Source : Aaj News

The Karachi Stock market dipped down to its support level of 9,700 and then recovered to close at 9,902. The rupee has fallen even more today and that is not helping the market, nor the economy. In fact nothing is helping the market or economy thanks to our fucked up government who has no clue about anything at all, other than seeking personal vendettas. Its clearly obvious that they give don’t give a fuck about the appalling economic situation and seem to think that by removing Musharraf and installing some judges , everything will be ok.  The man on the street who eagerly rushed to vote for the current party in power, for " democracy ",  is getting badly fucked by inflation and soaring food prices. With a billionaire thief, a total fucking idiot from the Punjab (also a billionaire thief) & PM Manuel whose English is as hopeless as his political ability, steering us through the current quagmire of shit, what hope do we have for the future ? (Probably another few months of indecison as to who will be the next President !) It seems we never learn.

Upper Caps : Shel / JSCL

Lower Caps : DGKC / LUCK / POL / JOVC

Market Low : 9,701.72  High : 9,963.58

Market Close : 9,902.35 – 61.23 points down

The KSE-100 index  opened up and made a high of 10,250, it then dipped down to a low of 9,848 and recovered to close down at 9,963. Profit taking, a bomb blast and an even weaker rupee saw the market close lower. Greazy Z has backtracked on his remark in the recent Sunday Times article re : Mush siphoning off US aid, claiming he was quoted out of context ! A close below 9,900 will lead to 9,700-500. 2moro’s close is anyone’s guess !

Dividends : Pakistan State Oil : 125% Cash. EPS : 81.94  Shell Pakistan : 25% Bonus + 400% Cash EPS : 93.76

Market Low : 9,848.76 High : 10,250.50 

Market Close : 9,963.58 – 208.28 points down

The KSE-100 index continued upwards to make a high of 10,240 and closed up at 10,171. The market got the boost from the fact that Moody’s didn’t downgrade their rating on Pakistan. The next upward resistance is 10,500

News : Moody’s will maintain its rating for Pakistan despite political and economic problems country is facing, a senior analyst from the ratings agency said on Monday. Moody’s downgraded Pakistan’s rating to B2 from B1 in May because of growing economic imbalances and political difficulties that analysts say have plagued the government that came to power after the February elections. "B2 is a stable outlook and that’s the way it’s going to stay for now,"… Aaj News

Market Low : 9,893.20 High : 10,240.37

Market Close : 10,171.86 – 262.41 points up.

Friday saw the KSE-100 index dip down to 9,583 and then recover to close up at 9,909. Heavy support and buying from the EMOF took the market up along with the news that some of the bigger companies have expressed an interest in buying back their shares given the current incredibly low & attractive prices. Next week throws us into the impeachment saga which could see turbulence for the market especially if it turns out to be long and protracted.

News : Austrian oil and gas group OMV said on Friday it had acquired two exploration licences in southwest Pakistan. OMV will be part of a joint venture with state-run Pakistan Petroleum Ltd (PPL), which will operate the two blocks… Aaj News

Malaysia’s Maybank has bought another 5 percent of MCB Bank for about 703 million ringgit ($213 million), raising its stake in the South Asian nation’s biggest lender to 20 percent, it said on Friday… Aaj News

Upper Caps : BAFL / AICL / NBP / AHBL / UBL / DGKC / MCB / NML

Lower Cap : AHL

Market Low : 9,583.79 High : 9,936.94

Market Close : 9,909.45 – 202.16 points up

The Karachi Stock market opened and dipped down to 9,469, a new intra-day low for 2008. It then recovered making a high of 9,816 and closed marginally up at 9,707, just above its support level. At the moment, there is no point in further bellyaching about what the current hopeless govt.’s latest desperate move of trying to impeach P.Mush will do to the country/economy/dwindling foreign exchange reserves etc etc. The next few days will unravel the bumpy road ahead for the market. Given the fact that this (attempted impeachment) will not be a quick procedure, it will only lead to more uncertainty in this crapshoot of a market that the KSE-100 index has become. 8,700 or lower is a reality one could be facing soon.

Dividend : Nestle Pakistan : 75% Cash EPS : 18.08

Lower Caps :  AHL / NML / AICL / ATRL

Market Low : 9,469.98 High : 9,816.98

Market Close : 9707.29 – 28.47 points up.

The KSE-100 index slid further downwards today on selling based on the "new" political agenda of the pathetic coalition govt.’s announcement to impeach P.Mush. The market has now fallen nearly 6,000 points since its all time high of 15,676 on April 18th, about 38%. At a time when the rupee is hitting newer lows and the economy is fucked (to put it mildly), the government should focus on strengthening its economy more than its failed politics and its pathetic inability to decide on anything in the last 5 months. With Greasy Z & Non Sequitur spending most of their time in Dubai and London, & the wet PM Manuel (think Fawlty Towers) at the helm of our non-government, its hardly suprising that there has been massive local & foreign selling in the market as they can’t be taken seriously. There is currently no need for impeachment which will rock an already unstable boat even further, there are far greater problems being faced in the country. If the Govt is so worried that they will be dissolved & are therefore clutching at the impeachment straw, they should do a better fucking job of being a Govt. The next stop on the slippery slope is yesterday’s low of 9,556 followed by support at 9,360.

Dividend : Pakistan Petroleum Ltd. : 10% Bonus EPS : 26.12

Pakistan Petroleum Ltd (PPL) on Wednesday reported a 17.9 percent jump in full-year net profit, fuelled by higher well-head gas and crude oil prices and strong growth.In a statement to the Karachi Stock Exchange (KSE) PPL, which operates Pakistan’s largest gas field, posted a net profit of 19.77 billion rupees ($273 million) in the year to June 30. This compared with a net profit of 16.77 billion rupees for the previous year… Aaj News

News : The Privatisation Commission here on Wednesday decided to complete privatisation of SME Bank, Hazara Phosphate Fertilizers Limited (HPFL), National Power Construction Company (NPCC) and Heavy Electrical Complex (HEC) by September 2008. Completion of all necessary arrangements for Global Depository Receipts (GDR) of Kot Addu Power Company (KAPCO) was ordered for its listing in October 2008… Daily Times

The Securities & Exchange Commission of Pakistan (SECP) and Karachi Stock Exchange have agreed to expedite the demutualisation process in a way to get the KSE corporatised and demutualised by December 31, 2008. This was decided in a meeting on the demutualisation of the Karachi Stock Exchange on Wednesday at SECP’s Karachi Office convened by SECP Chairman Razi-ur-Rehman Khan…. Business Recorder

Market Low : 9,634.33 High : 10,042.47

Market Close : 9,678.82 – 363.64 points down

The Karachi Stock market’s opening was delayed this morning as a meeting was being held to discuss whether the index would be frozen at 9500 and other emergency market issues. As expected the SECP refused to freeze the market at 9,500 and the market dipped down to 9,556 and recovered rapidly towards the close to close up at 10,042. The market was boosted by the news re: wellhead gas prices increasing by 35% in the Sui field. This boosted the energy sector and therefore the market. The meeting between Zardari and Sharif amounted to fuck all as usual, and there will be another one 2moro. The next upward resistance is 10,250.

Dividends : Hubco Power Co : 10% Cash EPS : 2.25

Pakistan Petroleum Ltd. (PPL) is due to announce its results 2moro.

News : The wellhead prices have broadly risen by 10-35 percent on the back of higher Arab Light Crude Oil and HSFO prices in the last 6 months…OGRA has issued new gas wellhead prices for the period 1HFY09 (Jul-Dec 2008) of 12 major gas producing fields out of 49,…Well head gas prices in the country are fixed on half yearly basis in January and July every year, depending on the average Arab Light crude and HSFO prices during first six months of the preceding seven months period. The Arab Light average during this period stood at $98.4/barrel versus $75.2/barrel in the last six months, depicting a massive growth of 36 percent…Wellhead price of Sui has been increased by 35% under this revision, as there is no cap on the wellhead pricing of this field. Pakistan Petroleum Limited (PPL) with a 100% stake in Sui is the primary beneficiary of this revision. The field contributes around 64% in PPL’s total gas production… Daily Times

The “roll-over facility” shall now be allowed on the release of CFS MK-II transactions by financee at any point of time during the entire contract period. Moreover, such roll-over facility shall also be allowed on the “force release” of CFS MK-II contract ie, on the 23rd business day of such contract. The said changes are also catered in the CFS MK-II system and this facility will be available from August 6th, 2008…Margin eligible securities: KSE has revised the list of margin eligible securities. Deposit against exposure margins, market-to-market losses (where applicable) and special margins in the revised list of securities will be implemented effective from August 18th… The News

Hub Power Company Limited (HUBCO) on Monday announced that it has acquired 75 per cent controlling interest in Laraib Energy Limited (LARAIB) and will be setting up country’s first hydropower project by an independent power producer (IPP).The project is an 84mw, run of the river hydropower generating complex being set up about eight km downstream of Mangla Dam, HUBCO said in a notice issued to Karachi Stock Exchange… The News

Upper Caps : PPL / BAFL

Lower Cap : AHL 

Market Low : 9,556.96 High : 10,042.47

Market Close : 10,042.47 – 189.29 points up

The KSE-100 index rose to make a high of 10,282 and then got raped again down to a low of 9,739 and closed down at 9,853. The market swung a total of 543 points from its high to its low and has closed at its lowest close since Dec.22nd 2006. Its seems that the Rs.5 billion worth of stock bought on Saturday did fuck all to stem the index’s continuous fall and the market has fallen a 1000 points in the last three trading sessions. The credit rating by S&P and Moodys due this week is said to having caused further panic selling today. It looks like the shorters have stepped in and could bash the index further down to 8700. The next downside support is 9700 followed by 9350. Oil fell below $120 for the first time in 3 months today.

News :  The Securities and Exchange Commission of Pakistan (SECP) has turned down the proposal to freeze the stock market on Monday’s closing level or index 9,500 points. In an emergency meeting held at the residence of SECP chairman on Monday night, the board of directors of Karachi Stock Exchange (KSE) and Securities and Exchange Commission of Pakistan Chairman Razi-ur-Rehman discussed different suggestions to support the market. Some of the members gave a suggestion to freeze the stock market on Monday’s closing level or index 9,500 points. Senior KSE members also attended the meeting and discussed the prevailing situation at the local bourses. However, the final decision is likely to be taken on Tuesday before opening the market as some of the senior members opposed this proposal… Aaj News

Market Low : 9,739.01 High : 10,282.78

Market Close : 9,853.18 – 318.21 points down

Once again the KSE-100 index got gangbanged on Friday and closed down at 10,171 ( the lowest close since Jan.4th 2007 ) . While the market seemed to be on the right track after the interest rate announcement on the 29th , Thursday and Friday saw a slide of 680 odd points to bring us back to 10,171. While foreign selling and OMC margins were blamed for the decline , no-one has mentioned that big brokers have been bashing the market, relentlessly selling certain stocks and hammering some of the smaller brokers out of shape. Even a " large " broker has been slammed in this ride a few weeks ago.

So once again there was an emergency meeting on Saturday where the EMOF, NIT, NAFA and some of the bigger brokers picked up Rs.5 billion worth of stocks at Friday’s closing prices. The question is will this " stabilize " the market momentarily or will we see 10k break and another slippery slide to 8,700-9k. Investor confidence is at an all time low and the last two days haven’t helped. More people have been wiped out from the market this time around than any other " March 2005 Crisis " or previous crash. Have we seen the worst of it yet ? How much Vaseline can one apply ?

Dividends : Arif Habib Securities Ltd : 25% Bonus + 15% Cash. EPS : 27.66. Profit after Tax : Rs.8,297 million

Market Low : 10,122.59  High : 10,583.58

Market Close : 10,171.39 – 412.19 points down

Pakistan Petroleum Ltd (PPL) : 6th

Nestle Pakistan Ltd (NESTLE) : 7th

Shell Pakistan Ltd. (SHEL) : 11th

JOVC

Pakistan State Oil (PSO) : 12th

World Call Telecom (WTL)

Faysal Bank Ltd. (FABL)

Jahangir Siddiqui & Co. (JSCL) : 16th

Crescent Commercial Bank Ltd. (CCBL)

As expected, the KSE-100 index shot up today closing 404 points up at 10,853. Despite the 400 point rise, volumes were relatively low with 87.6 million shares traded. The 1% interest rate hike was within market expectations and no further hikes in the CRR & SLR were seen as positive. Now that the uncertainty of the rate hike is over, the market should move upwards in lieu of the current result season. The next upward resistance is 11,100. Oil jumped up by $5 to127 today due to a decline in US gasoline inventories, any fucking excuse for its pathetic uncontrolled speculation.

Dividends : Arif Habib Ltd : 25% Cash + 25% Bonus. EPS : 19.14    Fauji Fertilizer : 30% Cash : EPS : 6.66

Fauji Fertilizer Company (FFC) has posted a net profit of Rs3.3 billion for the first half of calendar year 2008. This is 38 per cent higher than Rs2.4 billion the Company earned in the corresponding period last year…The Earning per Share (EPS) for the said period enhanced to Rs. 6.7 as compared to Rs. 4.8 in same period in 2007. Earnings of the company increased on the back of higher urea prices under the review period as price increased to Rs.600 per bag by Jun 2008, as well as higher volumetric urea sales, standing at 1.2 million tons as against one million tons in first half of 2007… net sales of the company increased by 39 per cent to stand at Rs14 billion compared to Rs10 billion in the corresponding period last year… The News

News :  The Economic Coordination Committee (ECC) of the cabinet on Wednesday approved the new oil pricing mechanism, reducing deemed duty for oil refineries and import duty on crude oil import to 7.5 percent each and fixing margins of OMCs and dealers… Federal Finance Minster Naveed Qamar said the measures taken would not benefit consumers. These measures would help the government reduce the subsidy on diesel by Rs 8.15 per litre. The minister said the government could not pass on the benefits of the reduction in OMCs’ and dealers’ margins to consumers. He said the government was still giving Rs 35 per litre subsidy on diesel that amounted to Rs 1 billion a day. The minister also said the ECC had fixed the margins of Oil Marketing Companies (OMCs) and dealers’ commission according to crude oil price of $100 per barrel. The ECC has also decided to reduce the deemed duty (a subsidy) for oil refineries from 10% to 7.5%. Import duty on crude oil has also been reduced from 10% to 7.5%… Daily Times

The government is considering a crackdown on cement manufacturers against raising cement prices to over Rs 400 per 50 kg bag, without any justification,…The issue was discussed in the meeting of the Economic Co-ordination Committee (ECC) of the Cabinet on Wednesday wherein it was confirmed that cement manufacturers have raised the price of 50 kg cement bag to Rs 400 at a time when the construction season is at peak in the country.Sources said that Finance Ministry has been asked to investigate the reasons for the sudden increase in cement prices when there was no substantial change in input costs. Analysts have calculated that the cost one 50 kg cement bag is in the range of Rs 230-240, which means that the manufacturers are overcharging the consumers by approximately Rs 160 per bag….the government was considering withdrawing recent increase of 20 percent in federal excise duty (FED) on cement because of its negative impact on construction industry throughout the country. The government had raised FED by Rs 150 per ton to Rs 900 from Rs 750 in the federal budget besides enhancing one percent general sales tax (GST)… Aaj News

Market Low : 10,448.19 High : 10,855.79

Market Close : 10,853.02 – 404.82 points up

The Karachi Stock market dipped down to 10,255 and recovered to close down at 10,448. The monetary policy has been announced (see article below ) which removes any future uncertainty from the market. The market should go up once the interest rate hike has been absorbed, however a close below 10,400 will be negative for the market and it would head to 10k and lower.

News : The State Bank of Pakistan (SBP) on Tuesday announced an increase in its key discount rate to 13.0 percent from 12.0 percent, effective July 30th, reinforcing its fight against inflation and widening twin deficits.State Bank Governor Shamshad Akhtar announced an increase in a monetary policy statement that focused heavily on what she called a "totally unsustainable" level of government borrowing… "Hence considering the risk related to rising external current account and fiscal deficit and worsening inflation outlook, the State Bank has decided to raise the policy rate in line with the market expectation by 100 basis points to 13 percent," Akhtar said. The State Bank left the banks’ cash reserve ratio at 9.0 percent and statutory liquidity requirement at 19.0 percent, … Aaj News

Market Low :  10,255.12 High : 10,578.49

Market Close : 10,448.19 – 130.30 points down

The KSE-100 index got hammered today on investors’ fears of another interest rate hike due to be announced 2moro. The market fell 453 points to close down at 10,578. It could fall further depending on the amount of the interest rate hike, the bigger the hike, the greater the fall. Be prepared with large jars of Vaseline.

Dividends : Engro : 20% Cash / HBL : EPS : 9.75 UBL : 15% Cash EPS : 5.73

News : The government has decided to phase out custom duties on petroleum products in a move to prevent masses from the effect of subsidy reduction in the future, Federal Minister on Finance Naveed Qamar said….He said the government has decided to reduce the profit margins of Oil Marketing Companies (OMCs), refineries and dealers on the sale of petroleum products…Qamar said the government is also considering to merge diesel subsidy in 16 percent General Sales Tax (GST) levied on each litre…. Daily Times

Market Low : 10,542.90 High : 11,032.17

Market Close : 10,578.49 — 453.68 points down

The KSE-100 index made a high of 11,173 , then dipped down to 10,979 and close up at 11,156. Total volume traded today was 111.9 million shares, still on the low side. Arif Habib Securities was the flavour of the day with 12.6 million shares traded. The market has closed above its first resistance of 11,100 and the next target is 11,400. The market is up by nearly 1000 points since Friday and after 4 days of green, there could be some weekend selling 2moro.

News : The authorities have decided at a meeting held on Thursday that Equity Market Opportunity Fund (EMOF) would be an Open-End Fund. The EMOF  launched from Friday (today) would be injected in stock markets under NIT management when market is under pressure…The initial size of fund was declared at Rs20 billion, but owing to its attractiveness of being an open-end fund, the size might inflate to any level. The general public would also be able to invest in this fund and the National Investment Trust (NIT) would be announcing its daily NAV value and dividends,…NIT would form a separate board to manage the fund. The board would be meeting at least after every six months or in case of emergency too. Initially, EOBI has confirmed to pool Rs3 billion; State Life Rs2 billion and Rs2 billion by National Bank, besides other financial institutions and banks would share rest of funds, sources said. This fund would be invested in KSE 100-share Index instead of KSE 30-share Index as was informed earlier. The fund would not be invested in more than 50 companies… The News

Malaysia’s Maybank is set to buy another 5 percent of Pakistan’s MCB Bank as early as next month, in a deal estimated at $218 million,…Malayan Banking Bhd, Malaysia’s leading lender, bought a 15 percent stake in MCB Bank, Pakistan’s top lender, for $680 million in May. That deal included a clause whereby Maybank was obliged to buy up to another 5 percent of MCB Bank shares within one year of the first transaction. The price for this stake was then agreed at Rs 490 per share, plus holding cost, with the total price not exceeding Rs 510 per share. “The deal is very much on, the talks have started, and if all goes well, it should materialise sometime in August,” said a source close to the transaction.
A spokesman at Maybank declined comment. A spokesman at MCB Bank said any stake purchase by Maybank would be in line with the previous agreement, but he did not give a time frame for the new purchase…. Daily Times

Adamjee Insurance is likely to announce profit after tax of Rs 2.7 billion (EPS Rs 26) for the first half of the current year compared to Rs 1.18 billion (EPS Rs 11.6) in the corresponding period of last year, a growth of 125 percent, says a research report…“Exceptional growth in 2Q2008 profitability would mainly be attributable to a one-time capital gain of Rs 2.7 billion on account of MCB sell-off deal,”…. Daily Times

The United Arab Emirates (UAE) has recently raised the cement price by 15 percent due to its rising demand, mainly benefiting Pakistani cement industry, sources said on Thursday. Pakistan is the major cement exporter to the UAE, as it fulfils around 70 percent of the total demand of the product in the Emirates.After the rising cement prices in the face of huge demand in UAE, analysts see Pakistan as a primary beneficiary to flood the Arab markets with its product. It is likely to receive huge cement export orders shortly, they said…Source : Aaj News

Upper Caps : BOP / AICL / NBP / UBL / MCB / DGKC / NML / ATRL

Market Low : 10,979.07 High : 11,173.77

Market Close : 11,156.68 – 138.18 points up

Another positive day at the Karachi Stock Exchange with the market making a high of 11,141 and closing up at 11,018. The market seems to have met resistance at 11,100 and needs to close above it for its next move to 11,400-700. Oil has dropped further down to $125 and hopefully will continue to fall more ,to get back to a realistic price.

News :  Barclays Bank Plc., a prominent bank of the United Kingdom, has become a scheduled bank in Pakistan from July 23 by opening its four branches, said Shazi Ashraf, head of corporate affairs of the Bank.“The Bank has commenced its two-branches in Karachi, one in Lahore and one in Islamabad from Wednesday (July 23) …,” she said.  Ms Shazi said, “the bank is neither interested to acquire any Pakistani bank till now nor it is negotiating for any merger.” Barclays Bank Plc entered into Pakistan with an initial investment of $100 million aiming to open ten branches throughout the country. It has commenced four branches in Pakistan while other six branches would be started by the end of this year… the State Bank of Pakistan (SBP) has declared “Barclays Bank Plc.” as a scheduled Bank with effect from July 23, 2008….Daily Times

Market : 10,784.81 High : 11,141.84

Market : 11,018.50 – 233.69 points up

The Karachi Stock market opened up and stayed positive all day, closing at 10,784. The market rose in anticipation of the Finance Minister’s visit this afternoon . He announced that the EMOF would be Rs.20 billion and would be managed by NIT. Also mentioned that the Govt. would work with the SBP to have a balanced monetary policy and promised that its net borrowing from the SBP would be kept at zero. Along with the expected  Saudi oil payment facility, there seems to be enough positive news to stabilize the market at current levels. The next upward resistance is 11,100.

News : The government has capped the profit/margin of oil marketing companies (OMCs) and dealers on oil sale at July 1, 2008 level, and constituted a committee to work out some methodology to give relief to the consumers. Acting Secretary, Petroleum, G A Sabri, announced government decision of capping OMCs’ and dealers’ profit/margin here at a press conference.He said that OMCs and dealers’ profit/margin capping would give a benefit of Rs 7.5 billion to the consumers, per annum, in oil prices….the government had also reached an agreement with refineries, which provides that the latter, as key player of the oil sector, would go for expansion in their production capacity to help the country meet its growing energy demand. He said the committee would decide the issue of deemed duty–a protection given to the refineries under exiting oil pricing formula…. Aaj News

Saudi Arabia is in talks to allow Pakistan to defer payments for crude oil sales during the current fiscal year, Pakistan’s de facto finance minister Naveed Qamar said on Tuesday."We are in talks with Saudi Arabia about the oil facility and there will be an announcement soon from Saudi Arabia," Qamar told an audience at the Karachi Stock Exchange, where he was visiting to reassure investors after a precipitous fall in share prices… Aaj News

Finance Minister Naveed Qamar announced here on Tuesday that Rs 20 billion ‘Equity Market Opportunity Fund’ (EMOF) would be launched within the current week. Addressing members of Karachi Stock Exchange (KSE), the minister said that the Rs 20 billion EMOF would be chanelled through National Investment Trust (NIT)…He said that the government has reduced borrowing from State Bank. The government would either not borrow, or borrow negligibly from the central bank, he said, adding that the government would use other sources to generate funds. He announced that the government would re-launch the privatization programme, after approval by the Cabinet, to generate more funds. The minister said that oil price hike was an international issue. He noted that the government was facing a challenging situation due to unprecedented rise in oil prices. He observed that the monetary policy should not be further tightened despite inflationary pressure. "We want to maintain a balance between monetary and fiscal policies in co-ordination with SBP, and boost exports", he said… Aaj News

Market Low : 10,374.30 High : 10,795.71

Market Close : 10,784.81 – 410.51 points up

After another dip down to 10,057, the KSE-100 index finally closed up with a reasonable gain of 140 points at 10,374. The Government has finally woken up to realize that the market has gone down nearly 35% in the last 3 months. This has resulted in a visit from the SBP governor at the KSE today and the Finance Minister will be visiting 2moro. A little too late one could say, but better late than never. A close above 10,500 would be supportive for the market.

Dividends : Engro Polymer : EPS : 0.83

News : State Bank of Pakistan (SBP) Governor Dr Shamshad Akhtar has said that despite multiple shocks, the country’s economy has managed to record economic growth of 5.8 percent in FY08, which is above the average growth trend of 5 percent observed between FY1991 and FY2008. During her first visit to Karachi Stock Exchange (KSE) here on Monday, she clarified that the central bank’s Prudential Regulatory Framework is largely supportive of exposures to the stock market, and that within the existing regulations, banks have the aggregate capacity of an incremental amount of Rs 40 billion to invest in the stock market, if they wish to do so. The SBP has also extended the deadline for banks’ total stock market exposure not to exceed 50 percent of their equity to June 30, 2009.
The SBP Governor was invited by the KSE Management to address a meeting of the KSE Board of Directors, stockbrokers and heads of commercial and investment banks… Aaj News

Upper Caps : AHSL / BAFL / DGKC / OGDC/ POL/ PSO / PPL /UBL / NBP amongst others

Lower Caps : MCB / BOP /

Market Low : 10,057.72  High : 10,374.30

Market Close : 10,374.30 – 139.52 points up

While the economy of the country is in dire straits, the government is still harping on about their differences in resolving the judiciary problem. Is this current slide, the reflection of our Govt. being seen as a totally inadequate, fucking joke ?

Dividends : FFBL : 6% Cash : EPS : 0.77

Market Low : 10,045.43 High : 10,491.88

Market Close : 10,212.92 — 278.96 points down

As expected the Karachi Stock market got badly fucked, as the lower limit was opened to 5% today and the market fell by 518 points. Volumes were on the low side with 49.3 million shares traded, not much different from July 9th when the lower cap was 1% and 50 million shares were traded. Certain blue chips have hit their 2 year lows yet there doesn’t seem to be much buying interest. If there is no support/buying at 5% down 2moro there will be a lot of bleeding investors.

Market Low : 11,161.07 High : 11,695.82

Market Close : 11,177.31 — 518.51 points down

Friday saw the week ending with the KSE-100 index closing down yet again, at 11,695. After Friday’s meeting of the SECP & the stock exchanges, it has been decided that the locks will revert to their normal 5% up or down as of July 14th. Short selling will be allowed in the August futures contract (see the article below) Given the pattern of trading in the last 2 weeks, expect a lot of lower caps 2moro. Stock up on Vaseline and Pampers !

News : Saudi Arabia has agreed, in principle, to defer payments for crude oil sales to Pakistan, expected to be worth about $5.9 billion during Pakistan’s 2008-09 financial year, The Financial Times reported on Saturday….Aaj News

The Securities and Exchange Commission of Pakistan (SECP) has reverted the upper and lower security-wise circuit breaker to 5 percent or Re 1, announcing strict monitoring of market activities, especially with reference to blank sales in excess of allowed limit and other market manipulations…. Aaj News

Market Low : 11,687.11 High : 11,773.12

Market Close : 11,695.82 – 77.30 points down

Next meeting on the fund formation is scheduled to be held on July 16. The tentative regulations were made public following SECP and KSE meeting held here on Thursday with financial institutions, which are the only eligible investors to pool their funds in EMOF.National Investment Trust Limited (NITL) will be given the responsibility to run this fund, while financial institutions ie banks and Development Financial Institutions (DFIs), state-owned institutions and semi-government companies would be its only eligible members.

If an agreement is inked between the SECP and the likely members of this fund, then this fund would be invested in the KSE 30-index stocks that are eligible for CFS and CFS MK-II. Fund allocation will be according to the weight of each eligible scrip as a percentage of total CFS value as of July 08, 2008. Listed securities of brokerage houses and their holding companies will not be eligible securities for investment.

The EMOF shall be utilised as 30 per cent of funds will be made available on Day one; 30 per cent on day two; 30 per cent on day three and 10 per cent of funds will be made available on Day four. Any unutilized funds shall continue to be made available till the fifth trading day.After phase one, if funds are still available, the EMOF will review its investment strategy and may reenter the market.On the other hand, EMOF shall divest its holdings when the share prices of any particular scrip exceed 20 per cent of their weighted average of last six months… The News
 

After yesterday’s volume of 50 million, the market resumed its previous low volume, trading only 10.5 million shares. The market remained down the whole day and in the last 2-3 minutes jumped up by 60 odd points on heavy buying in HBL. The outlook for 2moro looks the same till there is some clarification on the lock revision after the 15th. Oil rose by $5 today.

News : Credit Suisse launched its operations in Pakistan on Thursday through a wholly owned subsidiary, Credit Suisse Pakistan (Private) Limited based in Karachi. It will initially offer equity research and research sales to institutional clients, and aims to expand its operations to full broking-dealing services…Credit Suisse has already put in place a research team for Pakistan, with active coverage of the country’s equity market. It started research coverage of Pakistan in 2006 and covers 50 Pakistan stocks. A paper released to the media on the occasion says that Credit Suisse is investing in Pakistan because it believes it has an exciting economic story that offers attractive opportunities to investors… Daily Times

The government is likely to reduce the deemed duty from 10 percent to 5 percent for oil refineries in an attempt to stabilise the oil prices in the country and a summary has been prepared in this regard that would be presented before the Economic Coordination Committee (ECC) of the cabinet for the formal approval… Daily Times

Pakistan State Oil (PSO) has registered significant growth in the sales of diesel and petrol by 20 and 30 percent, respectively during the financial year 2007-08.According to official figures released Thursday, the state-run oil marketing company has carried out 5.3 million metric tonnes sales of diesel in the closing fiscal year 2007-08, against 4.4 million metric tonnes in 2006-07. Source : Daily Times

Market Low : 11,702.52 High : 11,796.47

Market Close : 11,773.12 – 23.35 points down

The KSE-100 index actually went into the green zone a couple of times today, the first time in many days. The rapid (but long overdue ) support measures by the SBP on halting the rupee’s slide and yesterday’s news of a Rs. 50 billion market fund being talked about , seemd to be positive catalysts to a certain extent. Volume rose to nearly 50 million shares traded today and several stocks lifted from their lower caps to close plus. Perhaps the market will make a positive close 2moro .

News :  Pakistan State Oil (PSO) has paid all its outstanding dues worth Rs 57 billion to different local refineries and banks on purchase of petroleum products particularly diesel and petrol….. the government had granted Rs 62 billion as Price Differential Claims (PDC) to the state-run oil marketing company a week ago. It has also paid outstanding loans of more than Rs 30 billion to the banks… its market share has increased to 71 percent in the current month as compare to 59 percent during May… Daily Times

Market Low : 11,733.42 High : 11,846.94

Market Close : 11,796.47 – 16.77 points down