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 630 posts and counting ...
The KSE-100 index stayed positive throughout the day with a total volume of 103.2 million shares traded. OGDC was the volume leader of the day and closed at Rs.118.80, its highest close for some weeks. Six month high oil prices saw Shell go up by Rs.15 to close at 390 and PSO up Rs.8.55 at 355.05. The market closed above its 30 and 50 DMA’s at 11,271. 11,300 is the next upward resistance followed by 11,450. On the downside it held its support level of 11,150 yesterday .
SCRA inflow for March is $116.1 million taking the current fiscal year total to $673.36 million
News : Pakistan on Friday appointed a consortium of Merrill Lynch and local KASB Group to manage the global share sale of United Bank Ltd., the country’s third largest bank, Privatisation Minister Zahid Hamid said…sources familiar with the matter said the government plans to sell a stake worth $200 million to $300 million through a global depository receipt (GDR) sale.The government is only selling part of its roughly 45 percent stake in UBL, and the deal is expected to be completed by the end of June…. Aaj News
The Sindh High Court (SHC) ordered the government on Friday to let the local Attock Group of Companies take part in bidding for a management stake in the country’s top oil marketing firm, Pakistan State Oil, a lawyer said.The Privatisation Commission (PC) of Pakistan is likely to hold bidding for a 51 percent stake in PSO on May 5.Khalid Anwar, a lawyer for the Attock Group, said the group appealed to the SHC after the PC failed to invite it to undertake due diligence, without giving a reason and even though it had been short-listed…. Aaj News
The federal government has shelved the long-awaited Initial Public Offering (IPO) plan of Pakistan Steel Mills (PSM) until its unbundling and completion of essential repairs… Business Recorder
Despite a day of low volumes at the Karachi Stock Exchange , the market made a high of 11,367 and then got bashed down to 11,193 closing down at 11,233. Despite oil reaching further highs, its impact seems to be minimal on the oil stocks, and PSO closed Rs.8.95 down. While there might be some pullback 2moro, 11,150 looms closer and a close below will get the Vaseline on the table again.
News : Karachi Stock Exchange (KSE) members have sent an SOS message to the prime minister soliciting his direct intervention into the matter of the issuance of SECP show cause notices… Geo News
Habib Bank Limited and National Bank of Pakistan have arranged a multi-currency financial facility for the urea expansion project of Engro Chemical Pakistan Limited.According to banking sources here Tuesday, the facility included Rs 2.137 billion of local currency, 120 million Euros and 70 million dollars of foreign currency…. Daily Times
The Karachi Stock market made a high of 11,383, but was unable to sustain the gain and closed up at 11,328. Volumes were slightly higher than yesterday with 1118.2 million shares traded. Banks continued to get bashed and oil stocks rose. The market has been extremely range bound in the last few days as investors have been sitting on the fence, and it needs to break out either way. Upside continues with a close above 11,450 and 11,150 is the area to hold on the downside. SCRA inflows for March equal $93.6 million taking the current fiscal year total to $650.8 million
News : Pakistan’s economy is projected to post a growth rate of about 6.5 percent to 7.0 percent in 2007 and 2008, reflecting some strengthening in agriculture and manufacturing sectors, the Asian Development Bank (ADB) said on Tuesday…Aaj News
Market movers have further raised the price of Dia Ammonium Phosphate (DAP) by Rs 60 to Rs 1,450 per 50-kg bag in the wake of rising demand and short supply in the country, traders said on Monday. "DAP is currently in short supply, as importers are avoiding to import it due to rising prices in the international market, and government has not given subsidy on its import after December 2006," they said. With the current upsurge of Rs 60, the DAP price has gone up to Rs 1,450 per bag in a week…. Business Recorder
The KSE-100 index made a high of 11,350 and a low of 11,256, closing up at 11,301. Banks took a bashing today with BOP being the highest volume leader with 19.9 million shares traded. Overall the volumes were low with 97.4 million shares traded. Even oil hitting its high for 2007 didn’t really see much upside for oil stocks.Upside resistance is 11,450.
News : World oil prices on Monday hit new highs for 2007 as the market fretted over rising tensions between the West and major crude producer Iran. New York’s main oil futures contract, light sweet crude for delivery in May, gained 63 cents to close at 62.91 dollars. Earlier on Monday it reached 63.30 dollars — last seen on December 21. In London, the price of Brent North Sea crude for May delivery rallied 1.20 dollars to settle at 64.41 dollars a barrel in electronic deals. It had earlier struck 64.50 dollars — the highest point since December 4. … Aaj News
Citibank has put off its decision to buy a Pakistani bank..the talks, which were started for the purchase of a small bank in Pakistan, have for the time being put on hold…The stock market was buzzing with the news of Citibank Group buying Soneri Bank… Geo News
The Karachi Stock Exchange was closed today due to a public holiday for Pakistan Day.
News : The brokers alleged to be linked with the KSE March 2005 crisis are all set to challenge the SECP in the court to prove themselves innocent… as many as 70 brokers, who received notices from the SECP, held an informal meeting and decided to wash themselves clear of all allegations… Aaj News
The Privatisation Commission board on Thursday okayed the bidding of Pakistan State Oil (PSO) on May 5th, and directed the Commission to make every possible effort to adhere to the deadline for the sell-off.… Aaj News
The week ended with a very low volume day at the Karachi Stock Exchange. 79.6 million shares were traded in a lacklustre market session. Even the $2 oil price hike did fuck all for the oil stocks. 11,450 has to break for further upside.
News : The government on Thursday executed exploration license with Government Holdings (Pvt) Limited (GHPL) and petroleum production sharing agreement with GHPL and Oil and Gas Development Company Limited (OGDCL) over Block No. 2266-8 (Offshore Indus-S), covering an area of 2,129.91 sq. kms.This block is located in the Arabian Sea and is situated in ultra deep waters.The OGDCL will invest an amount of $1.5636 million during the first two years of the initial term of the license…. Aaj News
News : The Government plans to hold an auction on May 5 to sell a majority stake in Pakistan State Oil (PSO) worth about $530 million…The potential bidders will conduct due diligence for PSO, the country’s top oil marketing company, from March 19 to March 30…This will be followed by submission of questions by April 16, and an investor forum on April 23. The tentative date for the closing of the transaction is June 29…The bidders short-listed for the deal include 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. Pakistani firms that qualified for bidding are MCB Bank, Fauji Foundation, Attock Group of Companies and the Kohinoor Group, which is led by Kohinoor Textile. MCB Bank will bid for PSO in partnership with Malaysian oil giant Petronas… Aaj News
The KSE-100 index remained negative all day and slid down to 11,280 towards the close. Further corrections would lead to 11,200 and a break of 11,150 would lead to the reemergence of the Vaseline jar.
News : The country’s top cement producer DG Khan Cement (DGKC) is eyeing the Indian market to sell its surplus output after a new plant starts production next month, a top company official said. DGKC will increase its production by 7,000 tonnes per day to 4.66 million tonnes per annum after the opening of the new plant, bought from Denmark for around 14 billion rupees ($230.6 million).The firm currently produces 2.11 million tonnes of cement annually…. Aaj News
The government plans to sell a stake worth up to $300 million in United Bank Ltd (UBL) through a global share sale, and it has invited six investment banks to pitch for the deal…Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, JPMorgan and Merrill Lynch are all bidding for the $200 million to $300 million global depository receipt (GDR) sale. A government source said the decision for the deal’s lead manager would be made by early April, and the deal should be completed by the end of June. The government is only selling part of its roughly 45-percent stake in UBL… Aaj News
News :Asia’s largest milk processing plant by an international enterprise will be inaugurated on March 16 at Kabirwala, district Khanewal.This milk plant has established by Nestle Pakistan with an investment of $70 million (about Rs4.25 billion)…Aaj News
This week posting will be brief and sporadic, as Suttabhai is in the process of moving house and will shortly be at the mercy of his fucked-up ISP.
A relativley lacklustre day at the Karachi Stock Exchange with lower volumes, a dip down to 11,322 and a high of 11,453. Support is at 11,300 and upside will continue on a break of 11,500.
The Karachi Stock market zoomed up further today making a high of 11,447 and closing up at 11,413. Volumes have increased (290.2 million shares traded today) and the index has recovered 513 points since Monday’s bashing. Bank Alfalah was the volume leader for the 2nd dat running with 41.8 million shares traded, closing at its upper limit on the strength of a rumour that Vodafone is buying a stake in Warid Telecom. Bank Alfalah owns 26% of Warid Telecom. 11,500 is the next number to break for upside to continue.
News : Philip Morris International (PMI) on Friday completed the acquisition of a 50.21 percent stake in Pakistan’s Lakson Tobacco Co. Ltd. for about $340 million, the US tobacco giant said in a statement. PMI, which now holds around 97.62 percent shares in Lakson, agreed in January to acquire the stake in the country’s second largest tobacco firm at 666.89 rupees a share… Aaj News
The KSE-100 index stayed positive all day and closed up at 11,283. The volume of shares traded increased to 283 million and Bank Alfalah was at the top with 36.2 million shares traded. Another big hoist for cements with DGKC, Lucky and MLCF closing at their upper limit. A close over 11,300 should lead to 11,500.
News : Cement export to India has been started with 1,500 tons cement exported by a leading cement manufacturer. According to the first capital research report, for the first time D G Khan Cement dispatched 1,500 tons cement to India, as a sample, by sea route, at C&F price of around $90 per ton… Aaj News
Late buying towards the end took the Karachi Stock market shooting up to close on its high at 11,146. The buying seemed genuine after several days of downside and not just shorters cutting their trades. DG Khan Cement was the volume leader of the day with 19.25 million shares traded. DGKC, Lucky, Pioneer, Fauji and Maple Leaf cement all closed at their upper limits on the news that India might ban cement exports (see below) The next upward resistance is 11,300.
SCRA outflow for March is $28.4 million reducing the total for the fiscal year down to $528.7 million
News : India may consider banning cement exports to reduce prices, trade minister Kamal Nath said."We will look at that if that helps bring down cement prices,'’ Nath told reporters in New Delhi today. The government will have to study this step because cement is regionallypriced.'’ Indian cement makers increased the prices on March 5th after finance minister Palaniappan Chidambaram announced an increase in the excise rate on cement. The duty was increased to 600 rupees ($13.5) from 400 rupees a ton for cement sold at 190 rupees or more for a 50-kilogram bag. For cement priced below 190 rupees a bag the tax was cut to 350 rupees a ton. Source : Bloomberg
The Sale of Pakistan State Oil has been postponed to the end of September.
The price of daiammoniumphosphate (DAP), an essential crop nutrient, has jumped up by Rs 25 per 50 kg bag due to its acute shortage in the wake of hoarding by market movers… Aaj News
The Privatisation Commission Board is scheduled to meet on March 7 to approve the scheme for United Bank Limited (UBL) Global Depository Receipts (GDRs), and some other key transactions…They said that the Privatisation Commission would present to the Board the financial and technical evaluation to appoint the financial advisor for UBL GDRs. The financial advisor would assess the international market, besides recommending the size of the GDRs, on the basis of its assessment of the global market…. Business Recorder
After yesterday’s battering , the KSE-100 index undertook a pullback opening up with a gap and a high of 11,070. However the gains could not be sustained and the market closed marginally up at 10,923. Another day of relatively low volumes with Bank Alfalah being the volume leader with 13.8 million shares traded. While 10,900 has held as support for the last 2 sessions there could be more bashing in days to come. A close over 11,070 would lead to upside around 11,200.
News: Pakistan’s cement sales increased almost a third in the first eight months of the financial year, boosted by demand from homebuilders. Sales, including exports, climbed to 15.2 million metric tons in the period ended Feb. 28 from 11.5 million tons a year earlier…Exports increased to 1.77 million tons from 976,000 tons a year earlier. Pakistan’s demand for new houses is estimated at 500,000 units a year… Source : Bloomberg
The Karachi Stock Exchange (KSE) has issued a proposal for the Federal Budget 2007-2008, pointing out issues relating to amendment to income tax for demutualisation, withdrawal of CVT and tax rebate for companies to attract listings…It said that an analysis of the first six months of this fiscal year shows that due to increase in CVT and withholding tax rates the average daily share volume has gone down drastically from 299 million to 173 million shares of the same period last year….The statement said the biggest direct beneficiary of the stock market boom in the country has been the government itself as more than 20 percent of the equity market is still directly or indirectly owned by government of Pakistan..In order to attract more investments in the country, the government needs not only to provide consistency in the current economic policies, but allow more incentives and facilities to equity investments to convert interest into real investment and create job opportunities besides enhancing government’s revenues… Daily Times
The reduction in gas prices, especially in the feed gas by 10 percent, has started bearing results, as the fertiliser manufacturers have reduced urea prices by Rs 7 per 50 kg bag, it is learnt. The impact of gas price reduction on urea price has been calculated by the financial institutions at Rs 138. This translates to Rs 6.90 per bag cut… Business Recorder
In order to increase the level of transparency, enhance the documentation and thereby strengthen the risk management system in the stock exchanges the Securities Exchange Commission of Pakistan (SECP) has made the exchange responsible for settlement of cash dividend payments, bonus shares and right allotment letter of shares held by the lenders against the funding provided to the borrowers under the Continuous Fund System (CFS) of the exchange….It was also agreed between SECP and KSE Directors that cash settled futures contracts will be introduced in the bourse from April 2, 2007….SECP chairman Razi Khan reportedly has taken a firm stand that institutional investors have to provide margins directly to KSE on their trades...Business Recorder
Not surprisingly the Karachi Stock market got badly reamed with the adjustment to the first day of Client Level Netting (CLN). The market opened with a dip and staggered down to a low of 10,854 and closed at 10,900. It looks like the 12k plus index has wings on it now as the result season is over. Mr. Long is still holding on, getting sorely shafted in the bargain. The markets RSI levels have fallen to nearly 40 and there should be some pullback this week, as it looks a bit oversold. While analysts claim the fact that shrinking volumes are a supportive action, that doesn’t stop the market from getting fucked. The next support level is 10,700 while upside is about 11,200. Prepare to apply copious volumes of Vaseline for this week’s ride !
News : Dutch bank ABN Amro agreed to buy a 93.4 percent stake in Prime Bank for 13.8 billion rupees ($227 million), the latest in a series of acquisition by foreign banks in Pakistan…With 52 billion rupees worth of assets and 41 billion rupees in deposits, Prime Bank is Pakistan’s 19th largest bank. It has a network of 69 branches in 25 Pakistani cities, ABN Amro said…The price represents over four times the net asset value of Prime Bank, as of the end of September 2006, and values the bank at about $243.66 million…The deal will make the combined entity the second largest foreign bank in Pakistan, and one of the top 10 banks in the country with assets of 124 billion rupees… Aaj News
The KSE-100 index opened up and made a high of 11,290, alow of 11,104 and closed down at 11,133.Todays volume shrank to 98.7 million shares traded .The Karachi Stock market has lost 475 points this week due to the CLN issue and the Chinese market getting buggered earlier in the week. The next downward support is 11,055 leading to 10,900. The market has to break 11,300 on the upside and failed in the last 2 days hitting 11,288 and 11,290.
News : The total net earning of the listed commercial banks touched Rs 60 billion or approximately $1 billion in December 2006, compared to Rs 45 billion or $750 billion a year ago….In Pakistan, there are 38 commercial banks working, having assets of Rs 3.9 trillion as on Sept 30, 2006, whereas listed banks are 22 in numbers and represent 72 percent and 75 percent of total assets and liabilities of the banking sector, respectively….We expect banks earnings growth momentum to continue and in 2007, the forecasted banks’ profitability growth is 20-25 percent… Daily Times
The Oil and Gas Development Company Limited (OGDCL) has chalked out an intensive five-year plan to further accelerate its exploration and production efforts…. Daily Times
The Securities and Exchange Commission of Pakistan (SECP) and Karachi Stock Exchange (KSE) have agreed to implement the Client Level Netting (CLN) system from March 5th. The decision has been taken in a daylong meeting between the KSE board members with the Chairman SECP, Razi-ur-Rehman Khan at the commission on Thursday… a broker told Business Recorder that all the issues have been mutually resolved…Chairman SECP briefed the meeting that modalities are in place whereby margins relating to financial institutions trade will be paid directly to KSE….It was also agreed that a mechanism would be developed to address the procedure of entitlement to bonus/right shares in the CFS market…. Business Recorder
The KSE-100 index made a high of 11,288 and dipped down to 11,136 closing up at 11,207. Upper resistance levels are 11,300 and 11,500 with 11,100 and 10,900 on the downside. There should be some pullback soon though 2moro being a Friday, the market might have its rectum torn apart and break 11k. Keep on applying the Vaseline.
SCRA infow of $13.9 million takes February’s total to $175.6 million and $557 million for the current fiscal year.
News : Securities and Exchange Commission of Pakistan (SECP) Chairman Raziur Rehman said Thursday that it is not SECP that is delaying the issues regarding Clients Level Netting (CLN); KSE is responsible for the delay, instead…. Geo News
Pakistan’s government has received bids from six financial service companies and brokerages to be advisers for the sale of a stake in SME Bank Ltd…BMA Capital Ltd., IGI Investment Bank Ltd., AMZ Securities Ltd., Arif Habib Securities Ltd., Abacus Consulting and a group including Grant Thornton LLP are among bidders for the right to advise the government on the size of the stake to be sold… Source : Bloomberg
The Karachi Stock Exchange members, while expressing apprehension, have urged the Securities and Exchange Commission of Pakistan (SECP) to remove anomalies and clear the pending issues prior to implementation of Client Level Netting (CLN) system…"We are ready to implement the CLN on its due date ie March 5, 2007. However, the implementation of it without addressing the issues could create negative impact for the stock market",…On a joint representation received from 71 members of the Karachi Stock Exchange, expressing concerns over the introduction of ‘client level netting’, without addressing various pending matters, the management of the Exchange arranged the meeting to address these concerns…. Aaj News
As a part of the Petroleum Policy 2007, the government has decided to remove the cap of $36 for oil and gas wellhead prices, and put in place the new zone-based formula for making oil and gas sector more attractive for the exploration and production (E&P) companies. To give different incentives to the investors, Pakistan has been divided into three zones….For the first time in Pakistan’s history, the oil and gas pricing formula will differ from zone to zone and E&P companies will get different price of gas and oil price for different zones.The new oil and gas formula will be the most important factor of the Petroleum Policy 2007 as the government will rely on it to attract local and foreign investment for oil and gas sector…. Aaj News
The KSE-100 index stayed positive throughout the day with a total volume of 103.2 million shares traded. OGDC was the volume leader of the day and closed at Rs.118.80, its highest close for some weeks. Six month high oil prices saw Shell go up by Rs.15 to close at 390 and PSO up Rs.8.55 at 355.05. The market closed above its 30 and 50 DMA’s at 11,271. 11,300 is the next upward resistance followed by 11,450. On the downside it held its support level of 11,150 yesterday .
Market Low : 11,126.19 High : 11,250.63
Despite a day of low volumes at the Karachi Stock Exchange , the market made a high of 11,367 and then got bashed down to 11,193 closing down at 11,233. Despite oil reaching further highs, its impact seems to be minimal on the oil stocks, and PSO closed Rs.8.95 down. While there might be some pullback 2moro, 11,150 looms closer and a close below will get the Vaseline on the table again.
The Karachi Stock market made a high of 11,383, but was unable to sustain the gain and closed up at 11,328. Volumes were slightly higher than yesterday with 1118.2 million shares traded. Banks continued to get bashed and oil stocks rose. The market has been extremely range bound in the last few days as investors have been sitting on the fence, and it needs to break out either way. Upside continues with a close above 11,450 and 11,150 is the area to hold on the downside.
The KSE-100 index made a high of 11,350 and a low of 11,256, closing up at 11,301. Banks took a bashing today with BOP being the highest volume leader with 19.9 million shares traded. Overall the volumes were low with 97.4 million shares traded. Even oil hitting its high for 2007 didn’t really see much upside for oil stocks.Upside resistance is 11,450.
The week ended with a very low volume day at the Karachi Stock Exchange. 79.6 million shares were traded in a lacklustre market session. Even the $2 oil price hike did fuck all for the oil stocks. 11,450 has to break for further upside.
Market Low : 11,260.21 High : 11,439.62
Market Low : 11,141.29 High : 11,372.57
Market Low : 11,118.57 High : 11,454.59 
News : The Government plans to hold an auction on May 5 to sell a majority stake in Pakistan State Oil (PSO) worth about $530 million…The potential bidders will conduct due diligence for PSO, the country’s top oil marketing company, from March 19 to March 30…This will be followed by submission of questions by April 16, and an investor forum on April 23. The tentative date for the closing of the transaction is June 29…The bidders short-listed for the deal include 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.
Market Low : 11,259.99 Market High : 11,344.77
The KSE-100 index remained negative all day and slid down to 11,280 towards the close. Further corrections would lead to 11,200 and a break of 11,150 would lead to the reemergence of the Vaseline jar.
News :Asia’s largest milk processing plant by an international enterprise will be inaugurated on March 16 at Kabirwala, district Khanewal.This milk plant has established by Nestle Pakistan with an investment of $70 million (about Rs4.25 billion)…
This week posting will be brief and sporadic, as Suttabhai is in the process of moving house and will shortly be at the mercy of his fucked-up ISP.
The Karachi Stock market zoomed up further today making a high of 11,447 and closing up at 11,413. Volumes have increased (290.2 million shares traded today) and the index has recovered 513 points since Monday’s bashing. Bank Alfalah was the volume leader for the 2nd dat running with 41.8 million shares traded, closing at its upper limit on the strength of a rumour that Vodafone is buying a stake in Warid Telecom. Bank Alfalah owns 26% of Warid Telecom.
The KSE-100 index stayed positive all day and closed up at 11,283. The volume of shares traded increased to 283 million and Bank Alfalah was at the top with 36.2 million shares traded. Another big hoist for cements with DGKC, Lucky and MLCF closing at their upper limit. A close over 11,300 should lead to 11,500.
Late buying towards the end took the Karachi Stock market shooting up to close on its high at 11,146. The buying seemed genuine after several days of downside and not just shorters cutting their trades. DG Khan Cement was the volume leader of the day with 19.25 million shares traded. DGKC, Lucky, Pioneer, Fauji and Maple Leaf cement all closed at their upper limits on the news that India might ban cement exports (see below)
After yesterday’s battering , the KSE-100 index undertook a pullback opening up with a gap and a high of 11,070. However the gains could not be sustained and the market closed marginally up at 10,923. Another day of relatively low volumes with Bank Alfalah being the volume leader with 13.8 million shares traded. While 10,900 has held as support for the last 2 sessions there could be more bashing in days to come. A close over 11,070 would lead to upside around 11,200.
Not surprisingly the Karachi Stock market got badly reamed with the adjustment to the first day of Client Level Netting (CLN). The market opened with a dip and staggered down to a low of 10,854 and closed at 10,900. It looks like the 12k plus index has wings on it now as the result season is over. Mr. Long is still holding on, getting sorely shafted in the bargain.
The KSE-100 index opened up and made a high of 11,290, alow of 11,104 and closed down at 11,133.Todays volume shrank to 98.7 million shares traded .The Karachi Stock market has lost 475 points this week due to the CLN issue and the Chinese market getting buggered earlier in the week. The next downward support is 11,055 leading to 10,900. The market has to break 11,300 on the upside and failed in the last 2 days hitting 11,288 and 11,290.
The KSE-100 index made a high of 11,288 and dipped down to 11,136 closing up at 11,207. Upper resistance levels are 11,300 and 11,500 with 11,100 and 10,900 on the downside. There should be some pullback soon though 2moro being a Friday, the market might have its rectum torn apart and break 11k. Keep on applying the Vaseline.
