About the Karachi Stock Market Blog Daily updates on the Karachi Stock Market, with news, company dividends and KSE-100 index movements.The rollercoaster of a day trader's dream /nightmare riding the KSE-100 index. More than 850 posts and counting ...
There seems to be not much stopping the continuous upward ride on the Karachi Stock market . Yet another day of upside , with the market closing on its high of 11,272, 12.2% up for the current year. OGDC has begun to move at last closing up at 124.5 , folllowed by PTC nearly capping up at Rs.55.25. 11,300 is the next target to close above for further upside. 11k is the current downward resistance. SCRA up to $80 million for January , a total of $359 for the fiscal year.
Dividends : Arif Habib Ltd : EPS : Rs.6.81 Pakistan Premier Fund : EPS : -0.17 Maple Leaf Cement : 25% Rights at a premium of Rs.2.50 Honda Atlas Cars : EPS -1.77 Shell Gas LPG : EPS : Rs.2.10
News : The government has shelved the Pakistan Steel Mills Corporation (PSMC) strategic sell-off plan for one year and approved a scheme for its initial public offering (IPO) through bourses for 10 percent shares with additional 10 percent shares as green shoe option…. Business Recorder
The President of Canadian Frontier Holdings (CFH) Nigel McCue accompanied by Chairman Petroleum Exploration Limited (PEL) Zaheeruddin called on Minister for Petroleum and Natural Resources Amanullah Khan Jadoon here on Wednesday and briefed him about the joint venture investment plan of $200 million in oil and gas exploration and power sectors… Source : Business Recorder
Austrian oil and gas group OMV said on Wednesday total gas sales at the Pakistani Sawan field increased by some 15 percent to 66,700 barrels of oil equivalent per day (boed). Source : Business Recorder
Pakistan Petroleum Limited (PPL) in collaboration with the Government Holding Private Limited (GHPL) would embark on the exploration of oil in the eastern offshore…PPL presently produces 770 million cubic feet of gas, while 3,870 barrels of oil per day besides 70 metric tons of LPG every day… Daily Times
The bull run continued at the Karachi Stock Exchange with the KSE-100 index making a high of 11,113.31. With no sign of any correction at the moment it closed up at 11,105. BOP was the volume leader of the day , nearly capping up at one stage. The index’s RSI levels are over 75 now and there has to be some release on the pressure building up. Several of the blue chips are oversold esp. MCB. Two days of peace next week with a long weekend coming up.
News : The Securities and Exchange Commission of Pakistan (SECP) has constituted a committee comprising representatives of three stock exchanges, SECP, Mutual Funds Association of Pakistan, stock brokers and bankers to address issues relating to smooth and early implementation of Continuous Funding System Mk II(CFS)… Business Recorder
The Carlyle Group, one of the world’s largest private equity firms, plans to set up a fund of several billion dollars for investments in Pakistan and the Middle East.
"We are seriously looking at Pakistan because of its strong economic growth and investor-friendly policies," sources quoted David Rubenstein, chief executive officer of the Carlyle Group, as telling Prime Minister Shaukat Aziz in a bilateral meeting in Davos, at the sidelines of the World Economic Forum. The Carlyle Group will be the first private equity firm to come to Pakistan…Mr Aziz hailed the development as "the best news we have had in a while". He said Pakistan had been trying to bring in private equity firms for a long time.… Daily Times
Another positive day in the Karachi Stock market with the KSE-100 index breaking 11,000 to make a high of 11,083 and closing above 11k at 11,031.The last market the time broke 11k was Oct.17th 2006. The volume of shares traded today was 314 million , the highest of the year and also for a long time. OGDC finally got off its arse closing at 121.2 breaking out of its recent range. MCB broke Rs.300 intra-day and NBP was up another Rs.6.25. The market has now risen 991 points since Jan. 1st 2007 and is up 9.8% for the year so far. With a long weekend ahead there might be some sell off towards the end of the "Friday show".
Dividends : Pakistan Petroleum Ltd (PPL) : RESULT FOR THE HALF YEAR ENDED 31/12/2OO6 45% Cash . EPS : Rs.12.62 PROFIT BEFORE TAXATION RS. IN MILLION 12,197.535 / PROFIT AFTER TAXATION RS. IN MILLION 8,449.317
Pakistan Petroleum Ltd (PPL) posted a better-than-expected 46 percent rise in first-half net profit, fuelled by higher natural gas prices, sending its shares up 5 percent….July-December net profit jumped to 8.45 billion rupees ($139.12 million) from 5.78 billion rupees a year earlier and beat market forecasts for 7.7-7.9 billion rupees…PPL shares, valued at $2.8 billion, trade at just under 10 times forecast earnings, against 10.5 times for India’s Oil and Natural Gas Corp. Ltd and an Asia-Pacific sector average of more than 29 times…. Source : Business Recorder
Fauji Fertilizer and the Golden Arrow Selected Fund (GASF) will announce their results 2moro.
News : The Karachi Stock Exchange (KSE), with the approval of Securities and Exchange Commission of Pakistan (SECP) has announced that the implementation of the Client Level Netting (CLN) shall be effective from March 1, 2007 for the ready market…. Business Recorder
Despite the fact that the CVT meeting has been postponed for a 2nd time, the market breadth increased and the KSE-100 index shot up to close on its high of 10,856. Banks were the flavour of the day with MCB up Rs.13.35 and NBP Rs.7.90. OGDC is still struggling as it has been higher than its close when the index was lower. While the risk for a sizeable correction increases as the market has now gone up nearly 500 points since Jan.11th, the market looks good to test 10,900.
SCRA inflow for January is $73m taking the total for the fiscal year to $351 million.
News : The Karachi Stock Exchange (KSE), in consultation with the Securities & Exchange Commission of Pakistan (SECP) has awarded Deutsche Bank A G the exclusive financial advisor mandate which will include valuation of the KSE. This is a further move towards KSE’s demutualisation and in contemplation of its incorporation as a company limited by shares…. Business Recorder
ABN Amro Bank is likely to finalize a purchase deal with Prime Commercial Bank in the next few days…The sources in the banking circles claimed that the ABN Amro Bank has almost completed its due diligence of the Prime Commercial Bank “The ABN Amro Bank has set the offer price of Rs 54 per share,” it is learnt…. Daily Times
The Karachi Stock market continued its erection with the KSE-100 index making a high of 10,787. Unable to sustain any upside it drooped down to close at 10,702. It seems evident that the market is hanging on for the decision to reduce Capital Value Tax (CVT) which is being discussed 2moro. If CVT is reduced as per expectations, the market could test 10,900, if not then where it gets bashed down to remains to be seen. SCRA for the month of January is $61.4 million, taking the total for the fiscal year upto $339.3 million.
Fauji Fertilizer Bin Qasim (FFBL ) will announce its results 2moro.
The full-year earnings of Engro Chemical Pakistan Limited have increased by 10 percent during the financial year 2006 as compared to profit earned during the corresponding year. The company announced its full-year results for the year 2006 on Monday and the reported profit after tax was Rs 2.55 billion which is higher by 10 percent over the 2005 profit of Rs 2.32 billion…. Daily Times
News : Pakistan Petroleum Ltd (PPL) is expected to post a rise in first-half net profit of more than 30 percent due to high gas prices…PPL accounts for 26 percent of Pakistan’s gas production, and the firm is high on the government’s privatisation agenda….The company is due to release results for the six months to Dec. 31 on Jan. 25th. Source : Business Recorder
The secondary domestic offering of OGDC shares is oversubscribed by 38% as the applications received have amounted to Rs 3.268 billion while the amount required to be realized through this retail offering was Rs 2.365 billion…The minister on Monday announced the successful over-subscription for the domestic retail offering of ordinary shares of the Oil and Gas Development Company Limited (OGDCL). Giving details of the final domestic retail offer, he said that the offer was priced at PKR 110/ per share, which was at a discount to the market price and to the price at which shares/Global Depository Shares were allocated to the institutional investors on November 30, 2006… Daily Times
The government on Monday granted two petroleum exploration licences to the joint venture of Orient Petroleum International Inc (OPII) and Zaver Petroleum Corporation Limited (ZPCL)… Business Recorder
After some struggling, the KSE-100 index finally broke 10,700 and managed to close just above it. This is the 7th consecutive positive close for the Karachi Stock market and it’s up 347 points since Jan.11th. Perhaps because the upside has been staggered there hasn’t been a bashing down as yet, just some intra-day corrections. The market could coast along upwards to test 10,900 but it seems unlikely without some proper correction, especially as OGDC has gone dead again. 10,570 is where the first net will catch the market’s fall. Hubco was on the top of the volume leaderbroad with 11.7 million shares traded today.
Dividends : Engro Chemical Ltd : FINANCIAL RESULT FOR THE YEAR ENDED 31/12/2006, 30% CASH, EPS : Rs.15.47
News : The Ministry of Industries and Production is to submit a fresh summary to the Economic Coordination Committee (ECC) of the Cabinet, proposing allocation of gas, time schedule and monitoring system for Fatima Fertiliser Company Limited (FFCL) on the line of Qadirpur Gas Field Formula (QGFF)… Business Recorder
Karachi Stock Exchange (KSE) has finalized trial cash settled future trading, whose mock session would kick off from February 1st... Geo News
Philip Morris International (PMI) today announced that it has entered into an agreement to acquire an additional 50.21% stake in Pakistan cigarette manufacturer, Lakson Tobacco Company Limited(Lakson Tobacco), from a number of Lakson Tobacco’s principal shareholders for PKR 666.89 (USD 10.96) per share. PMI currently holds 40% stake in Lakson Tobacco and this transaction will bring PMI’s stake in Lakson Tobacco to approximately 90%.
In accordance with Pakistan securities law, PMI will proceed to make a public tender offer for all of the remaining shares at the same price per share to be paid to the principal shareholders. Based on a price per share of PKR 666.89, Lakson Tobacco is valued at PKR 41.07 billion (USD 674.9 million).
Lakson Tobacco is Pakistan’s second largest tobacco company, with an estimated cigarette volume of 29.8 billion units in fiscal year, ending 30 June, 2006, generating net revenues of approximately USD 160.5 million. Its EBITDA was USD 46.1 million in 2006 and the Company held an estimated 47% share of the growing 63 billion-unit Pakistan cigarette market…. Source : Philip Morris International
Usually on Fridays the Karachi Stock market dips due weekend selling or less frequently it goes up. It is rare to see a close like today with 0.6 points up. Making a high of 10,688 the market closed at 10.641. Its holding here with 10,680 as its upward resistance before breaking 10,700, but with the large volumes of stock building up in badla , a correction should come soon. On the downside immediate support is 10,570, followed by 10,500 & 10,450.
Engro Chemical’s board meeting is 2moro and the results will be announced on Jan.22nd
News : Monetary policy statement for January-June 2007: first quarterly report for fiscal year 2007: The State Bank of Pakistan says that the growth target (7 percent) for the current year is achievable. However, inflation would be higher (7.5 percent) because of… Business Recorder
The secondary public offering of shares in the Oil and Gas Development Company (OGDC) at Rs110 per share in the local markets looks like having received lukewarm response from small investors, but analysts believe that the offer would nonetheless, be over-subscribed as institutional investors would have made a swoop to pick up what remains after the minimum lots have been satisfied… Dawn
The Karachi Stock market closed up for the 5th consecutive trading session. The market made a high of 10,680 closing up at 10,640. PSO was the flavour of the day posting a Rs.8.85 gain, while the other blue chips seem to be struggling to go upwards. The market is still holding strong and looks poised to break 10,700 2moro, however being a ‘’Friday show ‘’ it might close down due to weekend selling.
News : Please note the hilarious typo for Deutsche Bank in this article from Geo News … The Managing Director of the Karachi Stock Exchange (KSE) M. A Lodhi has said that the KSE and Douche bank are likely to sign demutualization agreement in next few days… Geo News
The Privatisation Commission (PC) approved a dozen bidders in the privatisation of Pakistan State Oil (PSO), the country’s top oil marketing firm.It said bidding for a 51% stake, with management control, was expected to take place in March, without giving a specific date…The PC said in a statement on Wednesday the bidders included Abraaj Capital, Abu Dhabi Group, Al-Ghurair Investment - all from the United Arab Emirates - a consortium grouping Saudi-based Aljomaih Group and Kuwait’s Noor Financial Investment; Bakri International Energy Systems, Dabbagh Group Holding of Saudi Arabia, Goldman Sachs (Asia) Finance and Vitol S.A. of Switzerland.
Local firms qualified for bidding are MCB Bank, Fauji Foundation, Attock Group of Companies and the Kohinoor Group, which is led by Kohinoor Textile.
US investment firm J.P. Morgan is the financial adviser for the sale…. Source : Business Recorder
The Karachi Stock Exchange witnessed healthy volumes today with 204.5 million shares traded. Making a high of 10,676, the market dipped down to 10,583 and closed up at 10,614. The market seems tight at the moment with intra-day dips yet closing positive. RSI levels are high and the market has closed above its 30,50 and 200 DMA. Upside continues above a close on 10,700 and downside’s first support is 10,560 through 10,500 to 10,450 It does look ripe for a minor correction soon though, which might come at any time.
SCRA increases by another $7.3m to reach $35.5m for January and $313.5 million for the fiscal year.
The meeting to discuss CVT reduction has been postponed to Jan.24th
Dividends :Dawood Hercules : FINANCIAL RESULT FOR THE YEAR ENDED 31/12/2OO6 : 45% CASH : EPS : Rs.24.79
News : The Privatisation Commission (PC) has received ten Expressions of Interest (EoI) and Statement of Qualification (SOQ) from the interested parties to participate in the privatisation process of Heavy Electrical Complex (HEC) Source : Business Recorder
The Privatisation Commission has received eight Expressions of Interest (EoIs) and statement of qualifications (SoQs) from interested investors for Hazara Phosphate Fertilisers Ltd (HPFL)…. Business Recorder
In order to facilitate better understanding and necessary rectification in the software-application and procedures thereof, in the risk management system of the Futures Market, by the Karachi Stock Exchange (KSE), the Securities and Exchange Commission (SECP) has made further clarifications…. Business Recorder
More upward movement at the Karachi Stock Exchange today, with the market closing on its high of 10,590. The market has closed above its 50 DMA ,just short of its 200 DMA at 10,600. 10,700 is the next resistance level upwards and downside support is at 10,450. PTCL was the volume leader of the day, trading 36.24 million shares due to some foreign buying. After many moons PTC has broken and held above Rs.50. MCB and PSO also went up by Rs.6.6 and 6.95 respectively. The meeting re: reducing CVT is 2moro. Bosicor’s board meeting is 2moro.
News : Pakistan’s central bank will unveil its monetary policy for the second half of the fiscal year on January 18th… Business Recorder
The downward revision in the prices of two major oil products by 2-7 percent is unlikely to have major negative effect on the bottom line of major oil marketing companies (OMCs) in Pakistan.Analysts see half-year earnings per share of Pakistan State Oil (PSO), the largest company of the sector, to remain almost unharmed, with 60 paisas per share decline…Daily Times
The Bank of Punjab (BOP) has secured its loan, which was given to Crescent Standard Investment Bank (CSI)… Geo News
The Karachi Stock market opened up with a gap and stayed in the green all day. It broke 10,550 intra-day and closed just above 10,500. The main index boost came from OGDC making a high of Rs.119, followed by POL and PPL as the price of oil is going up. Some correction is lurking around the corner as the mkt is up 465 points from the start of the year,(about 4.63%), though it might stay tight till the 17th when the meeting to decide on CVT reduction will take place.
Callmate Telips finally unlocked itself from its recent trend of lower caps and closed up at Rs.56.70.
News : As the crude oil prices in the international market recedes, the government is likely to give relief to consumers and cut down petroleum products’ rates on January 15…The Oil and Gas Regulatory Authority will submit its recommendations to the ministry of Petroleum on January 15, for cut in petroleum products. The recommendations will be presented to Prime Minister Shaukat Aziz the same afternoon for approval of the new prices….. Business Recorder UPDATE : The Government announced a reduction in the price of petroleum by Rs4 and diesel by Re 1 with immediate effect.
The Government of Sindh has suspended Stamp Duty on the electronic transfer of shares within the Central Depository Company (CDC) for two years… the Provincial Minister for Revenue, announced this at a press conference held here on Friday, after holding a meeting with SECP and KSE senior officials…. The News
After 2 days of minor corrections , the Karachi Stock market resumed its upward stride to break 10,400. The market made a high of 10,444 closing up at 10,425 , the highest close since December 15th 2006. Banks were the flavour of the day ( esp. NBP) as the State Bank issued the figures for year end with deposits showing a 12.71% growth. NBP is now 18% up since 28/12/06 and has finally closed above its 30,50 and 200 DMA along with PPL . The next upward test for the market is 10,500.
News : A divisional bench of the Sindh High Count (SHC) has issued a stay order in the China Petroleum Engineering & Construction Corporation (CPECC) contract award case and restrained the Oil and Gas Development Company Limited (OGDCL) from further processing the project…. Business Recorder
A delegation of Karachi Stock Exchange (KSE) led by M A Lodhi, Managing Director (KSE) will meet the Adviser to Sindh Chief Minister on Finance M A Jalil here on Friday (today). The long demanding issue of the Stamp Duty would be discussed in the meeting with the adviser… Business Recorder
The KSE-100 index made a high of 10,394 closing at 10,358. The secondary offering of 21,505 million ordinary shares of Oil and Gas Development Company Limited (OGDCL) starts from this morning till January 13. The price of oil at $54 is a 19 month low, reflecting the rapidly growing effects of global warming with unsually warm winters in the US and Europe. While the Karachi Stock market is holding up above 10,300, it has made lower highs and lows in the last 2 days. 2moro’s "Friday show'’ will possibly test 10,300 again.
News : The Prime Minister Shaukat Aziz has approved Engro’s Rs 101 million bid for gas from Qadirpur field to set up a fertiliser plant, despite opposition by the Ministry of Petroleum and Natural Resources…. Business Recorder
Urea (fertiliser) manufacturers have increased selling prices by Rs10 per bag, company executive at a leading producer said on Wednesday. The price increase is effective January 1st… Dawn
The government is expected to provide further incentives and facilities to enhance export of cement to increase capacity utilization of the cement industry that has gone up by more than 50 per cent since January last year… Dawn
The National Fullerton Asset Management Limited (NAFA) - a joint venture between National Bank of Pakistan, NIB Bank and Fullerton Fund Management Group, a wholly owned subsidiary of Temasek Holdings of Singapore – is launching two new funds…Daily Times
Lower Cap : Callmate Telips (6th consecutive day )
The Karachi Stock market didn’t have the juice to make much headway above its previous close. It made a high of 10,424 and closed at 10,374. Holding up above 117, OGDC could still head to 122. Cements made some headway with Lucky closing at its upper limit. 10,500 remains to test the market’s upside and 10,300 for the downside.
News : The cement production capacity in the country will increase by over 15 million tons during the current year…. Geo News
The Oil and Gas Development Company Ltd (OGDCL) in collaboration with Shell Pakistan would drill Offshore Indus Block-E to seek oil and gas reserves by March-April 2007…. The News
The Trust Deed of KASB Stock Market Fund was signed between KASB Funds Limited and Central Depository Company of Pakistan Limited on Tuesday…KASB Stock Market Fund will be an open-ended fund allowing investors further investments and full or partial redemption at any point in time. The IPO of the Fund is expected to take place in the1st week of February…Daily Times
As expected,after hearing the news last night re: the exemption of capital gains tax to be deferred till July 2008, the Karachi Stock market opened with a full erection this morning. This is the best news this market has received in some time and there is talk of lowering the CVT by half. While there were many gains across the board , only NBP, OGDC, MCB and Askari Bank really went up. OGDC finally moved after being stagnant for nearly a month and the KSE-100 index has finally closed above its 30 DMA after nearly 3 weeks. The market should test 10,500 soon.
News : The government will hold a public offering for Oil and Gas Development Co Ltd (OGDCL), the country’s largest listed firm, at a price of 110 rupees per share this week, the government said on Tuesday.Up to 21.505 million shares will be offered in lots of 500 in what would be the second public offering for the state-run company, the Privatisation Commission said in a statement."The subscription for the retail offering will occur during banking hours starting from Jan. 11," it said.It plans to raise as much as 2.37 billion rupees ($39.5 million) from the flotation, which will continue until January 13.BMA Capital Management is the domestic lead manager and the bookrunner… Source : Business Recorder
Banks are set to oppose any move by the State Bank to compel them to offer better returns on deposits, said banking sources. State Bank governor Dr Shamshad Akhtar had announced last month that the SBP would take action if major banks failed to increase returns to depositors…. The banks, however, did not move an inch to soften their stance over returns to depositors though the SBP approached the banks to bring in reforms….Dawn
Upper Cap : NBP / Soneri Bank Lower Cap : Callmate Telips
News has just come in that the Prime Minister has extended the capital gains tax exemption for the Karachi Stock market for another year until July 2008. It was meant to be implemented this July after the budget this year. It should give this weary market a welcome boost, removing one of the 2 expected hurdles for 2007 (the other being uncertainity at election time at the end of the year).
The Karachi Stock market briefly broke 10,300 intra-day and closed up at 10,237. OGDC made a high of 116.15 and gains were seen across the board. A relatively higher volume of 108.6 million shares were traded today. Upside continues on a close above 10,300 to 10,500.
News : The Standard Chartered Bank has submitted an application to the Securities and Exchange Commission of Pakistan (SECP) for listing in Karachi, Lahore and Islamabad stock markets.This was stated by the bank CEO, Badar Kazmi here in a press conference.He said after the merger with the Union Bank, we have applied for the listing in Karachi, Lahore and Islamabad Stock markets but, he added IPOs would not be issued…. Source : Business Recorder
Dividends : Bank of Khyber : RIGHT ISSUE = 100% AT A PREMIUM OF Rs.2/75= PER SHARE
Upper Cap : Soneri Bank Lower Cap : Callmate Telips
The Karachi Stock market made a high of 10,210 and then sunk down to 10,091 , closing down at 10,147. OGDC was the main obstacle in further upside in the market with its low of Rs.111.90 and finally crawling up to close at 113.2. Its GDR has also closed below its intial price of $1.89 at $1.848. Banks continued their upside esp. NBP and MCB and cements made a good recovery from their lows. The market closed on its support level of 10,147 managing to sustain some of its gains this week. Upside follows through 10,230 to 10,285-300 while downside will be tested at 10,050-10k.
News : Prime Minister Shaukat Aziz on Friday said Pakistan State Oil (PSO) has become a prime asset ready for privatisation as a result of its corporate transformation, innovative products and services and its leadership position in a highly competitive market.The prime minister said this while chairing a high level meeting to review the performance of PSO at PM’s House this evening…. Source : Business Recorder
The oil marketing companies (OMCs) sales have increased by 19 percent to 6.9 million tons during the first five months of the current fiscal year compared to 5.8 million tons in the same period last year.According to the figures released by the Oil Companies Advisory Committee (OCAC), the sales volumes depicted 9 percent growth on month-on-month basis… Business Recorder
The Securities and Exchange Commission of Pakistan (SECP) has registered 913 companies during the last quarter of the calendar year, 2006.Progressing forward from the new incorporation of 249 and 319 companies during the months of October and November 2006 respectively, the new incorporation during the month of December 2006 reached 345 companies.Of the 913 companies registered during the quarter, 877 companies were limited by shares, comprising 23 public unlisted companies, 815 private companies and 39 single member companies…. Source : Business Recorder
Having recently written about the Rough ride for the KSE in 2007 ,the following is a bullish report on the outlook for 2007 showing the other side of the coin. While there is a lot of logical sense in it, it is rather utopian as it fails to acknowledge any possible pitfalls during the year and fails to acknowledge the stupidity of the panic in this market in matters that are unfavourable to it. While I would be ebullient to see a 13k index, I’m still inclined to be skeptical about it. The report is well worth reading, but don’t get any erections about the market just yet !!
The market participants and research analysts expect that the new year will bring better returns to the shareholders as compared to 2006, as the Pakistan market is currently at attractive levels…Amongst the emerging markets of Asia, Pakistan is at 45 percent discount on PE multiple and offers the highest dividend yield of 6.5 percent. Based on an analysis, this year a local market can generate a return of 25 percent to 30 percent or 23 percent to 28 percent in US dollar terms with the KSE index most likely to cross 13,000 levels…. Daily Times
After a dozey day of the lowest volumes in 4 years, the Karachi Stock market picked up and made a high of 10,188. Banks were the leading sector today, buoyed up by positive ratings from Moody’s Investors Service and Fitch ratings. While the index closed up by 120 points, other stocks remained lacklustre in their performance with the exception of PTCL and PSO. Upside continues on a close above 10,200 with 10,300 to follow. Whether the market will sustain this upside will be seen in the ‘’Friday Show'’ 2moro. When it rose from 10,055 to 10,182 on December 20th 2006, the next day it plunged below 10k to close at 9,923.
News : The outlook for Pakistan’s banking system is stable, reflecting robust credit growth that is benefiting the banks. These are gradually showing signs of revival with stronger financial fundamentals, says Moody’s Investors Service in its latest Banking System Outlook for Pakistan…. Business Recorder
The Oil and Gas Regulatory Authority (OGRA) on Wednesday linked the domestic price of liquefied petroleum gas (LPG) with Saudi Aramco Contract Price, causing an increase of Rs10 to Rs12 per kg at retail level…Subsequently, producer or ex-refinery price has been raised to Rs34,349 per ton from the present level of Rs28,847 per ton…. The News
Engro Chemical Pakistan Ltd., the country’s second largest urea fertiliser producer, will raise money from international equity and debts markets to fund aggressive expansion plans, a senior official said on Thursday. Engro has already announced plans to set up a new urea plant, with an annual production capacity of 1.3 million tonnes, at an estimated cost of $1 billion. The plant is expected to be completed by end 2008. …analysts and markets sources believe it will need around $850 million…. Source : Business Recorder
A calm yet soporific performance on the first day of trading in 2007 at the Karachi Stock Exchange. Extremely low volumes with only 21.4 million shares traded. The KSE-100 index made a high of 10,066 and a low of 10,020 to close up at 10,060. At one stage it seemed that the market was almost suspended with only 1.5 million shares traded in an hour. Given the recent bashings and jitters in the market, this is better than minus 200 points. Callmate Telips began trading again today after its trading was suspended on December 8th.
News : The Securities and Exchange Commission of Pakistan (SECP) has decided to appeal against the Lahore High Court (LHC) decision, in which it permitted the trading of Callmate Telips shares….It further said that the same day the LHC, on another appeal of Callmate Telips, suspended the decision of the SECP, which was to ban trading of Callmate Telips shares.The SECP claimed that it was unaware of the hearing and none of its legal team was present in the court…. Source : Business Recorder
Foreign investments in the Pakistani stock exchanges during the first six months of the current fiscal year amounted to $277.9 million…. Geo News
Fitch Ratings have upgraded MCB Bank Limited’s (MCB) Individual rating to ‘D’ from ‘D/E’. At the same time, the agency affirmed MCB’s Support rating at ‘5′.The upgrade is due to a sustained improvement in its financial profile, which was largely enabled by improvements to Pakistan’s macroeconomic environment in recent years… Source : Business Recorder
The relatively modest performance of the Pakistani stock market in 2006 compared to the previous two years has forced a number of investors to consider alternative sources of investment as they prepare for 2007. The new year promises to be a politically tumultuous year…..For many investors, the year end figures from the stock market are indeed a sombre read…..as investors who are taking a realistic stock of the future, are reminded of the continuing weaknesses surrounding Pakistan. These include the many political issues waiting to be resolved, most notably the future of the country as it positions itself for elections later this year….A recovery in the stock market is therefore not likely to endure over a long period of time, and jitters in the Pakistani market are likely to remain more closely tied to the country’s political trends… Gulf News
Without starting the year on a gloomy note, the factors underlined in the article above will bear heavily on the performance of the Karachi Stock Market for this year. The market could well see some recovery to 11-11,500 based on current attractive values in some of the blue chips in lieu of the upcoming earnings season. However, 2 major hurdles lie ahead for 2007, the issue of capital gains tax for the stock market from July and the uncertainty leading to the elections at the end of 2007.
There seems to be not much stopping the continuous upward ride on the Karachi Stock market . Yet another day of upside , with the market closing on its high of 11,272, 12.2% up for the current year. OGDC has begun to move at last closing up at 124.5 , folllowed by PTC nearly capping up at Rs.55.25.
The bull run continued at the Karachi Stock Exchange with the KSE-100 index making a high of 11,113.31. With no sign of any correction at the moment it closed up at 11,105. BOP was the volume leader of the day , nearly capping up at one stage. The index’s RSI levels are over 75 now and there has to be some release on the pressure building up. Several of the blue chips are oversold esp. MCB. Two days of peace next week with a long weekend coming up.
Another positive day in the Karachi Stock market with the KSE-100 index breaking 11,000 to make a high of 11,083 and closing above 11k at 11,031.The last market the time broke 11k was Oct.17th 2006. The volume of shares traded today was 314 million , the highest of the year and also for a long time.
Despite the fact that the CVT meeting has been postponed for a 2nd time, the market breadth increased and the KSE-100 index shot up to close on its high of 10,856. Banks were the flavour of the day with MCB up Rs.13.35 and NBP Rs.7.90. OGDC is still struggling as it has been higher than its close when the index was lower. While the risk for a sizeable correction increases as the market has now gone up nearly 500 points since Jan.11th, the market looks good to test 10,900.
The Karachi Stock market continued its erection with the KSE-100 index making a high of 10,787. Unable to sustain any upside it drooped down to close at 10,702. It seems evident that the market is hanging on for the decision to reduce Capital Value Tax (CVT) which is being discussed 2moro. If CVT is reduced as per expectations, the market could test 10,900, if not then where it gets bashed down to remains to be seen.
After some struggling, the KSE-100 index finally broke 10,700 and managed to close just above it. This is the 7th consecutive positive close for the Karachi Stock market and it’s up 347 points since Jan.11th. Perhaps because the upside has been staggered there hasn’t been a bashing down as yet, just some intra-day corrections. The market could coast along upwards to test 10,900 but it seems unlikely without some proper correction, especially as OGDC has gone dead again. 10,570 is where the first net will catch the market’s fall. Hubco was on the top of the volume leaderbroad with 11.7 million shares traded today.
Usually on Fridays the Karachi Stock market dips due weekend selling or less frequently it goes up. It is rare to see a close like today with 0.6 points up. Making a high of 10,688 the market closed at 10.641. Its holding here with 10,680 as its upward resistance before breaking 10,700, but with the large volumes of stock building up in badla , a correction should come soon. On the downside immediate support is 10,570, followed by 10,500 & 10,450.
The Karachi Stock market closed up for the 5th consecutive trading session. The market made a high of 10,680 closing up at 10,640. PSO was the flavour of the day posting a Rs.8.85 gain, while the other blue chips seem to be struggling to go upwards. The market is still holding strong and looks poised to break 10,700 2moro, however being a ‘’Friday show ‘’ it might close down due to weekend selling.
The Karachi Stock Exchange witnessed healthy volumes today with 204.5 million shares traded. Making a high of 10,676, the market dipped down to 10,583 and closed up at 10,614. The market seems tight at the moment with intra-day dips yet closing positive. RSI levels are high and the market has closed above its 30,50 and 200 DMA. Upside continues above a close on 10,700 and downside’s first support is 10,560 through 10,500 to 10,450 It does look ripe for a minor correction soon though, which might come at any time.
More upward movement at the Karachi Stock Exchange today, with the market closing on its high of 10,590. The market has closed above its 50 DMA ,just short of its 200 DMA at 10,600. 10,700 is the next resistance level upwards and downside support is at 10,450.
The Karachi Stock market opened up with a gap and stayed in the green all day. It broke 10,550 intra-day and closed just above 10,500.
After 2 days of minor corrections , the Karachi Stock market resumed its upward stride to break 10,400. The market made a high of 10,444 closing up at 10,425 , the highest close since December 15th 2006.
The KSE-100 index made a high of 10,394 closing at 10,358.
The Karachi Stock market didn’t have the juice to make much headway above its previous close. It made a high of 10,424 and closed at 10,374. Holding up above 117, OGDC could still head to 122. Cements made some headway with Lucky closing at its upper limit. 10,500 remains to test the market’s upside and 10,300 for the downside.
As expected,after hearing the news last night re: the exemption of capital gains tax to be deferred till July 2008, the Karachi Stock market opened with a full erection this morning. This is the best news this market has received in some time and there is talk of lowering the CVT by half. While there were many gains across the board , only NBP, OGDC, MCB and Askari Bank really went up. OGDC finally moved after being stagnant for nearly a month and the KSE-100 index has finally closed above its 30 DMA after nearly 3 weeks. The market should test 10,500 soon.
The Karachi Stock market briefly broke 10,300 intra-day and closed up at 10,237. OGDC made a high of 116.15 and gains were seen across the board. A relatively higher volume of 108.6 million shares were traded today. Upside continues on a close above 10,300 to 10,500.
The Karachi Stock market made a high of 10,210 and then sunk down to 10,091 , closing down at 10,147. OGDC was the main obstacle in further upside in the market with its low of Rs.111.90 and finally crawling up to close at 113.2. Its GDR has also closed below its intial price of $1.89 at $1.848. Banks continued their upside esp. NBP and MCB and cements made a good recovery from their lows. The market closed on its support level of 10,147 managing to sustain some of its gains this week. Upside follows through 10,230 to 10,285-300 while downside will be tested at 10,050-10k.
After a dozey day of the lowest volumes in 4 years, the Karachi Stock market picked up and made a high of 10,188. Banks were the leading sector today, buoyed up by positive ratings from Moody’s Investors Service and Fitch ratings. While the index closed up by 120 points, other stocks remained lacklustre in their performance with the exception of PTCL and PSO. Upside continues on a close above 10,200 with 10,300 to follow. Whether the market will sustain this upside will be seen in the ‘’Friday Show'’ 2moro. When it rose from 10,055 to 10,182 on December 20th 2006, the next day it plunged below 10k to close at 9,923.
A calm yet soporific performance on the first day of trading in 2007 at the Karachi Stock Exchange. Extremely low volumes with only 21.4 million shares traded. The KSE-100 index made a high of 10,066 and a low of 10,020 to close up at 10,060. At one stage it seemed that the market was almost suspended with only 1.5 million shares traded in an hour. Given the recent bashings and jitters in the market, this is better than minus 200 points. Callmate Telips began trading again today after its 
