KARACHI STOCK MARKET NEWS

The market closed around the 200 dma. While a lower bottom of 9k was hit this time, indicating an upward trend , the market could go back down to 9,400 fill the gaps it rose with. A break of 10,300 is what we want to see for upward direction.

Market close : 9,981.49  — 147.98 points up 

The Karachi Stock Market opened with a full-blooded erection of nearly 200 points upwards and never really looked back till it closed at 9,841. It appears to have made a short term double bottom at 9,000 but still has to close above its 200 dma of 9,971. Whether the upward flow will continue like it did the last time to 10,300, remains to be seen. It seems to move in leaps of 400 points at the moment with upward and downward extremes.

Market close : 9,841.43 — 407.27 points up.

The market finally halted its decline and staged a pullback to 9,434 with all the major stocks closing at their upper limit. Once again there were massive spreads in certain stocks, NBP from 180 down to close at 197.65 and FFC bashed down to 111 to close at 120.2 .The next pullback is  9,600 ? 9800 ? or back down to 9,200 ? Till the result season arrives at the end of next month, keep that Vaseline jar handy, or better still wait for the market to close firmly above its 200 dma.

Market closed : 9,434.15 — 392.53 points up. 

The market got further fucked down to 9,040, now 1,131 points down (11%) since the 22nd. Perhaps there will be a pullback 2moro or a further slide to test the recent low of 8,768.

It seems the short selling ban did fuck all to stem the downside that started on Friday. The market opened on a positive note, and then went negative and  got buggered all the way down to 9,404. It could be heading for 9000 with a slight pullback 2moro as it has closed down 770 points in the last 2 sessions. Get the Vaseline back out !!

 Tags : Karachi Stock Exchange

Acccording to reports from the Dawn and the Business Recorder , the ban on short selling for the July future contracts will continue until further notice. This is fucking ridiculous as you can’t have a one-sided market, but then we all know that the Karachi Stock Exchange chops and changes its rules continuously. Even though the market closed well below its 200 dma, one expects that with this news it will shoot up again (with perhaps a quick spike down ) and head back towards 10,300 -10,500. Further news on margin requirements and exit mechanisms are to be announced on June 26th by the SECP.

Just when you thought it was time to put away the Vaseline jar ! The market swung a total of 524 points today from its upside of 10,319 down to 9,795.94 . It has finally corrected after many days of upper caps and closed 363.47 points down, partly as it needed a correction and partly as July futures contracts begin on Monday, allowing short selling again.

There were incredible spreads in certain stocks of upto Rs.20 from their highs and lows. The market has closed well below its 200 dma which indicates a further downside to 9600-9400 under normal circumstances. However, if short selling is not allowed on Monday, the market will shoot back up again heading for 10,500.

 At the market close a meeting has been planned to decide the issue of short selling from Monday. There is apparently a rumour that short selling will be banned for July as well which is fucking ridiculous. More update on that if there is any more news.

Tags : Karachi Stock Market : KSE 100 index correction  

The market made a high of 10,264 and then nose-dived towards the close. OGDC broke 140 intra-day and NBP/ MCB/ DGKC  POL / LUCKY and BOP have made a serious recovery in their prices  in the last 1500 points compared to some of the other stocks. Some correction is due here and might come in 2moro’s ‘’Friday Show " or next week. If one can go short in Monday’s July future contracts (26th June) , that will be a determining factor in some downside again.

Market close : 10,174.22 — 70.91 points up 

TAGS : Karachi Stock Exchange + KSE 100 index

The market tested its 200 dma and closed up above the 10k mark again. While it might stretch upwards to 10,300 ,some correction beyond today’s dip down to 9,937 is due soon.

The Cabinet Committee on Privatization will meet on 28th June 2006 to review the privatization process for PSO and PPL. The government is targeting to complete the sell-off of PSO and PPL by August 2006.

Standard Chartered Bank has completed its diligence for buying 66% shares of Union Bank and is expected to sign a share purchase agreement early next month following State Bank’s approval of the deal. Expectations are that Standard Chartered Bank would buy 338m shares of Union Bank at a price of PRs91 per share.

Market close : 10,102.96 — 2.21  points minus 

The market shows some signs of wavering today and went negative briefly, down to 9,855 before rising again and closing up a 163 points . About 3 weeks ago it broke 10k on the downside and has finally crawled up again. OGDC / BOP / NBP / MCB  & LUCKY closed on their 4th consecutive upper cap since  June 14th.

The SECP plans to respond to the risk management proposals by June 26th. Perhaps the artificial upside will last till then. By artificial, I mean the current situation of an imbalanced market that has banned short trading. Another step to indicating what a ‘’ Mickey Mouse " market this really is !! There are new rules every fucking time there is a big crash , instead of brains being used once and implemented.

Market close : 10,106.89 — 163.06 points up. 

The 3rd consecutive day of upside and more upper caps. Stocks that were bashed shapeless are recovering strongly. Perhaps the bottom was hit at 8750, though once the rules for going short are ammended at the end of the month and the new exit mechanisms are announced, we could see 9200 again. Some correction is due this week but the market should remain tight.

Market close : 9,943.84 — 336.7 points up , a total of 1,175 points in the last 3 days. 

There are now investigations into whether the Karachi Stock Market crashed due to excessive shorting . It seems obvious that it did and it snowballed into an unexpected panic towards the end leading to a historic fall of 545 points down in a day. It could well have gone down further to 8000 had some temporary measures not been placed to stem the fall. Some argue that the intervention should not have occured as its a free market and that it would have found its own bottom eventually. Probably  when all the Vaseline supplies were exhausted !

After all, if the market’s own exit mechanism dictated that someone going short could have made 20% on Thursday 15th (had the rules not changed) , why the fuck would anyone bother going long for 5% upside in a day ??

The market opened with a gap especially in OGDC and POL .Another day of continued upside as people grab shares at attractive prices with some assurance that there will be no short trades allowed till the end of June.The day was relatively dull with everything on my screen capped (the list is too long to mention ). While I feel that there is enough juice to hit 10k next week, there might be some correction prior to that.

Speaking of bottom earlier, here is some virtual arsewipe; The Daily Times carries a ridiculous story about the opposition accusing the Prime Minister of KSE manipulation and allowing "dirty gambling " !!

Market close : 9,607.11 / 429.65 points up. 

As expected the market experienced a pullback of 410 points, upwards from its recent nosedive of a 1000 points (11% decrease) in the last 2 days. A soothing balm for the badly buggered punter ! This is mainly due to a new directive from the KSE members board issued this morning,stating the following four new rules.

1.No more shorts are allowed in June forward contracts.

2.There been a  change in the lower cap percentage to 5% daily as with the previous sytem some stocks could have fallen as much as 20% today, having fallen 10% yesterday.

3.Another change has implemented was the margin requirements which has gone from 50% cash and 50% securites, to 100% securites as of today.

4. Finally, an increase in the stocks eligible for CFS from 14 to 30.

While all these measures should abate the recent panic and short selling which fucked the market out of shape this month, it will take some time to restore investor confidence. The upside should continue 2moro with 9,400 being the next resistance level. Whether all the big blue chips will cap again 2moro and stay capped remains to be seen. There is still no positive news on the horizon until the next set of results in 6-8 weeks.

PTC (Pakistan Telecommunication Company Limited) is down nearly a 100% percent from its post privatization levels. What does that say for its future ? Will it become another lemon like Hubco after being one of the most talked about stocks in the market ?

Market close : 9,177.63 . 410.64 points up, (4.68 percent increase ) 

The market gets royally buggered as it falls like a stone down to 8,768 , a record 546 points down. Absolute slaughter as NBP/ MCB / BOP/ POL / PPL / LUCKY / DGKC / NML / all hit their double lower cap and remained capped . The market is totally oversold with an approximate 1000 point decline in two days. There should be some pullback here at these prices as RSI levels are very low. Pampers have been brought into action now as punters get it bad & broke. Maybe time to cut the shorts !!!

More Vaseline as 9400 breaks to close at 9,314.91 , about 425 points down . Certain stocks could hit a double lower cap 2moro. The worst is not over yet and the index could head to down  8,700.

A relatively lacklustre day with a very low volume of  54.57 million shares traded. A high of 9,947 and the market closed at 9,733, 116 points down . As it has closed below its 200 dma of 9,832 , it is likely to retest 9,400 and with greater selling pressure, possibly heading  for 8,700.

The SECP (Securities and Exchange Commission of Pakistan ) has finally woken up and has sent a 15 member team to Karachi to probe in the stock market crash. Of course their timing is perfect , when the mkt has fallen 20% in the last six weeks with no change in its fundamentals, they now feel it has been manipulated. The equivalent to taking an Imodium after you have had chronic dysentry for 3 weeks !!

 The only stock to hold currently is your supply of Vaseline, as the ride is not over yet !!

The ‘’Friday Show'’, massive intra-day swinging , down to 9,457 a six month low, to 10,014 . A whopping 557 point swing. This resulted in huge spreads between the high and low of various stocks. The market is on a shaky wicket as there is no news on the near horizon to pull it up past 10,500. Going short is the fastest way to make money at the moment and it looks like 9,400 could well come again, and a possiblity of a 9k index break. While all stocks look attractive here, the market doesn’t seem to hold its pullback highs.

Banks and cements are fucked. Oil stocks are getting a vicious bashing with lows in OGDC, POL, PPL and PSO of 122.75, 323, 201.5 and 281.5 respectively. Only SNGP seems to be holding up closing at 115.5 , a price more likely to be seen at an  11k index. Vaseline sales are booming and some are buying gallon jars. As the new change in CVT rates will come into play on July 1st, more panic might insue.

The market closed at 9,849.83 just above the 200 dma which is 9,818