KARACHI STOCK MARKET NEWS

The KSE-100 index made a high of 14,532 and closed down at 14,396. OGDC was the flavour of the day with 17.6 million shares traded out of a relatively low volume of 175.3 million shares traded today. The market closed just below its support level of  14,400 and downside could see 14,200. Upward resistance is 14,500 and a close above 14,600 would augur well.

Dividends : Due to the volume of results announced today, a separate post has been created for them.  

News : Oil spiked past 93 US dollars in Asian trade on Monday for the first time to set a new intra-day high as tensions in the Middle East continued to spook investors Prices were also partly driven up by a new tropical storm, dubbed Noel, in the Caribbean which investors fear may make its way to the US gulf coast where many of the country’s energy facilities are located… Aaj News

After acquiring provisional certification from the Bureau of Indian Standards to sell their product in cement-hungry India by seven Pakistani companies, Pakistani traders are eying export of six million tones of cement per annum…Cheaper than Indian cement, Pakistani cement which sells in India in the price band of Rs 235-250 per bag, will make it much more attractive with the Indian construction and real estate boom… Aaj News

Upper Caps : Attock Refinery + Netsol Tech

Lower Caps : Bank Alfalah + JOVC

Market Low : 14,379.24 High : 14,532.18

Market Close : 14,396.98 – 53 points down     

The KSE-100 index appears to have stabilized somewhat, with no downside today a high of 14,491, and closed up at 14,449. OGDC was the volume leader of the day with 44.1 million shares traded out of a total 217.1 million. ICI Pakistan closed on another all time high at its upper limit of Rs.234.30. PPL moved up by 11.20 to close at 265. Oil crossed the $92 mark. While the "Tech Guy " is still negative about the index , next week remains to be seen based on reactions to recent results  and court decisions. The result season is virtually over. The next upward resistance is 14,500-600 and downside support is at 14,300.

Dividends : Pakistan Refinery : Eps: 6.86
Bank of Punjab : Eps : 9.60
Engro Chemical : 20% CASH : Eps :8.83
MCB : 25% CASH : Eps : 17.90
Pakistan Oilfields Ltd : Eps : 9.59
Attock Refinery : Eps : 17.47 

News: World oil prices surged to historic highs on Friday, breaching 92 dollars for the first time in New York on rising tension in crude-rich Iran and tight US energy supplies, analysts said."Now that oil is in the 90s, it is much easier to reach 100 dollars. Anything can happen in this market,"… Aaj News

Muslim Commercial Bank (MCB) on Friday reported a 30 percent rise in net profit during the first nine months of the year…MCB’s banking spreads, the spread between lending and deposit rates, are the highest in the banking sector and average 7.5 percent compared to the industry average of 7.3 percent.MCB, in a statement to the Karachi Stock Exchange (KSE), reported a net profit of 11.25 billion rupees ($185.31 million) for the January-September period, up from 8.64 billion rupees from the year-ago period… Aaj News

Pakistan Oil Fields Ltd. (POL) on Friday reported a 2.7 percent increase in earnings for the first quarter of 2007/08 as lower production from one of its major fields offset the impact of rising oil prices and dividend income received from investment in its group companies.POL, which also produces liquefied petroleum gas (LPG), solvent oil and sulphur, posted net profit of 1.89 billion rupees ($31.1 million) for the quarter ending Sept. 30th … Aaj News

Upper Caps : ICI Pakistan + Netsol Tech
Lower Cap : Pakistan Refinery 

Market Low : 14,361.15  High : 14,491.28

Market Close : 14,449.98 – 88.83 points up    

After yesterdays solid bashing down to 14,197 at one point, the KSE-100 index has somewhat recovered today and closed up at 14,361. AHSL was the flavour of the day with 32.4 million shares of a relatively low volume of 191.1 million shares traded today. Oil has risen upto $90 again. The next upside resistance is 14,400-500.

Dividends : OGDC : 17.5% Cash : EPS : 2.87
Packages : EPS : 8.73 

News : Oil & Gas Development Co., Pakistan’s biggest oil and gas explorer, said first-quarter profit remained unchanged. Net income was 12.34 billion rupees ($203 million), or 2.87 rupees a share, in the three months ended Sept. 30, from 12.33 billion rupees, or 2.87 rupees, a year earlier,… Revenue rose to 27.77 billion rupees from 25.29 billion
rupees a year ago. Source : Bloomberg

Upper Caps : ICI Pakistan + Worldcall Telecom + Attock Refinery + Netsol Tech

Market Low : 14,215.52 High : 14,365.75

Market Close : 14,361.24 – 100.38 points up

The Karachi Stock Market made a high of 14,760 today. It then dived down to a low of 14,440 and stayed in the red all day. The market closed down at 14,526. ICI Pakistan close at its all time high of Rs. 223.70 hitting its upper limit. The market is still in a corrective phase which could see more downside to 14,385 and 14,290. If 14,290 breaks it could be time for the Vaseline jar again !

Dividends : Allied Bank Ltd : EPS : 7.70
Fauji Cement : EPS : 0.17
KAPCO : EPS : 1.49 

News : Allied Bank Ltd., Pakistan’s third-largest lender by market value, reported a 25 percent increase in third-quarter profit because of higher income from investments and trading in shares. Net income rose to 1.39 billion rupees ($23 million), or 2.60 rupees a share, in the three months ended Sept. 30, from 1.12 billion rupees, or 2.08 rupees, a year earlier… Revenue rose to 3.81 billion rupees, from 3.14 billion rupees a year ago…The bank’s profit rose to 4.15 billion rupees, or 7.70 rupees a share, in the nine months ended Sept. 30, from 3.38 billion rupees, or 6.27 rupees a share, a year ago. Total revenue rose to 11.13 billion rupees in the first three quarters, from 9.02 billion rupees a year ago… Source : Bloomberg

Standard & Poor’s, the world’s leading index provider, announced today the launch of the S&P Select Frontier Index, the first investable index covering a broad range of frontier equity markets across Emerging Europe, Asia, South America and the Middle East. The S&P Select Frontier Index is comprised of 30 of the largest and most liquid companies from countries with smaller economies or less developed capital markets than traditional emerging markets, and as a result, have previously been excluded from most emerging market benchmarks and investment funds….the S&P Select Frontier Index includes companies from Bulgaria, Cambodia, Colombia, Jordan,Kazakhstan,Pakistan, Panama, United Arab Emirates and Vietnam. The biggest country weightings include Pakistan (28.97%), UAE (23.12%), Jordan (13.23%), Vietnam (11.54%) and Panama
(7.74%), while the top three constituents are MCB Bank (Pakistan)… To be eligible for inclusion in the S&P Select Frontier index, a company must have a minimum float-adjusted market capitalization of US$100 million, a minimum average daily value traded of US$2 million and a minimum of 15 days traded over the previous six months...PRNewswire   ( MCB, NBP, PSO, PPL and Lucky have a  weightage of 10.23%, 5.4%, 5.23%, 4.22% and 3.89%, respectively in the index.)

Upper Caps : ICI + Attock Refinery

Lower Caps : JOVC + Packages + NIB Bank

Market Low : 14.440.41  High :14,760.56

Market Close : 14,526.99 – 72.39 points down 

The KSE-100 index opened up and made an new intra-day high at 14,908. Unable to sustain these levels the market went down and closed at 14,599. Finally there is some semblance of a much needed correction happening . It could continue 2moro as well.

Dividends : Lucky Cement : EPS : 2.77
Fauji Fetilizer : 27.5% Cash : EPS : 7.80
Faysal Bank : 5.49

News : Lucky Cement Ltd., Pakistan’s biggest maker of building materials, posted a 53 percent increase in first-quarter profit because of higher overseas shipments. Net income rose to 730.6 million rupees ($12 million), or  2.77 rupees a share, in the three months ended Sept. 30, from 477.9 million rupees, or 1.81 rupees, a year ago… Sales rose to 3.65 billion rupees from 3.17 billion rupees a year ago. Source : Bloomberg

Faysal Bank Ltd., Pakistan’s fourth- largest financial services company by market value, posted an 18 percent decline in third-quarter because of higher spending on  advertising. Net income fell to 1.03 billion rupees ($17 million), or 2.43 rupees a share, in the three months ended Sept. 30, from 1.25 billion rupees, or 2.95 rupees, a year earlier…Revenue increased to 2.19 billion rupees from 2.01 billion rupees a year earlier. Source : Bloomberg

Upper Caps : JOVC + AHL

Market Low: 14,596.65 High : 14,908.91

Market Close : 14,599.95 – 187.60 points down

Friday’s close at 14,787 is the highest close for the KSE-100 index todate with an intra-day high at 14,839. The market dipped down to 14,553 after Thursday’s bomb blasts and showed strength in its recovery by closing up.

Dividends : Shell Pakistan : EPS : 9.72

Upper Caps : JOVC + AHL

Market Low : 14,553.54 High : 14,839.34

Market Close : 14,787.55 – 32.63 points up

Faysal Bank - Oct.19th

Fauji Fertilizer - Oct.22nd
Lucky Cement
Kot Addu Power Company
Indus Motor
Attock Cement
Golden Arrow Selected Fund 

Fauji Cement - Oct 23rd
Allied Bank Ltd
Pakistan Premier Fund - 4pm 

ICI Pakistan - Oct.24th 

Packages - Oct. 25th
National Refinery Ltd
Attock Refinery Ltd
Pakistan Oilfields Ltd
Attock Petroleum Ltd
Maple Leaf Cement
Muslim Commercial Bank Ltd
OGDC 

Engro Chemical - Oct.26th
Bank of Punjab
Pakistan Refinery - 4.30pm
J.O.V&Co - 4.45 pm
Arif Habib Ltd - 5pm 

Soneri Bank Ltd - Oct. 27th
Crescent Commercial Bank Ltd
Bosicor Refinery 

Bank Alfalah Ltd - Oct.28th 

Sui Northern Gas Pipelines Ltd - Oct 29th
Standard Chartered Bank (Pakistan ) Ltd
Pakistan State Oil
Adamjee Insurance
Nishat Mills Ltd
D.G.K. Cement
Arif Habib Securities Ltd - 4pm 

Pakistan Petroleum Ltd - Oct.30th
United Bank Ltd
Pakistan Telecommunication Co. Ltd.
Netsol Technologies Ltd 

HUBCO - Oct.31st 

The Karachi Stock market soared further upwards making another new intra-day high of 14,802 and closing up at a new high of 14,755. Cements were the flavour of the day with DGKC and Lucky trading 48 and 43 million out of a massive volume of 485.3 million shares traded today. The next upward resistance is 14,900 and there could be some sell off in 2moro’s Friday show.
The Big Tealeaf has returned after 8 years in typical 3rd world fanfare, eager to get her hands into a bigger than ever till for the third time. A criminal waste of taxpayers money to have 20k police guarding an uncessary procession which caused several businesses to close, flights to be cancelled, petrol pumps closed and chaos in terms of traffic.

Dividends : Fauji Fertilizer Bin Qasim : 10% Cash, EPS : 1.08

Board Meetings for October - updated 

News : The oil marketing companies have raised furnace oil price by Rs 192 per ton to Rs 29,798.80 per ton due to soaring oil prices in the international market, dealers said. They said that two leading oil marketing companies–Pakistan State Oil (PSO) and Shell Pakistan–on Monday raised furnace oil prices by around one percent… Aaj News

The consolidated after tax profit of Habib Bank Limited (HBL) has increased by 24 percent or Rs 1.970 billion to Rs 10.166 billion in the nine-month period ended on September 30 as compared to Rs 8.195 billion earned in the corresponding period last year.The earning per share of the bank surged to Rs 14.64 in the period under review against Rs 11.80 in the same period last year… Aaj News

The Abu Dhabi Group and Bestway Group are considering jointly to acquire an aggregate of five percent (in equal proportion) of the capital of the United Bank Limited (UBL) through open market purchases or conversion of GDRs held by them.The two groups jointly have a controlling interest in the affairs of UBL as they each own 25.5 percent of the share capital of UBL … Aaj News

Upper Caps : JOVC + Arif Habib Ltd + NIB Bank

Market Low : 14,590.17  High : 14,802.61

Market Close : 14,755.22 — 165.05 points up 

The KSE-100 index corrected down to 14,253 and then recovered to close at a new all time high of 14,591 (intra-day high of 14,616). Due to the high price of oil at $88 , OGDC was the flavour of the day with 66.4 million shares traded from a total volume of 325.9 million. PSO also moved up by Rs.10.45 , POL by Rs.10.20 and PPL hit the 300 mark, up by Rs.12.55. The market looks like its headed towards 14,700 with 14,360 as the downside support.

Board Meetings : Fauji Fertilizer Bin Qasim + Shell Pakistan will announce their results 2moro. 

News :  Oil thundered more than $2 to a new peak above $88 a barrel on Tuesday, extending a nine-dollar rally since last week on tight supplies, strong demand and growing tensions in northern Iraq.The record surge raised alarm bells for producer group OPEC, which voiced concern over the high price and blamed rampant speculation by big money investors rather than any shortage of supply… The News

Upper Caps : Packages + Maple Leaf Cement

Market Low : 14,253.29  High : 14,616.42

Market Close : 14,591.95 – 128.17 points up 

The Karachi Stock market will remain closed from October 12th-16th for the Eid holidays.

The KSE-100 index made a high of 14,506 and then dipped down to 14,384 before closing at 14,466. The market has managed to hold despite still being overbought. Its hard to say what will happen next week, but some correction will occur sooner than later. The next upward resistance is 14,536 and downside support is at 14,360.

Dividends : Fauji Cement : 87% Rights at a premium of Rs.6

Board Meetings for October 2007 - updated 

News : None worth mentioning.

Upper Caps : United Bank / Pace Pakistan.

Market Low : 14,384.53  High : 14,506.45 

Market Close : 14,466.12 – 19.93 points down  

The Karachi Stock Exchange will be closed today as it is a public holiday in Pakistan.

The KSE-100 index opened up again and made an intra-day all time high of 14,563, closing up at another record close of 14,484. OGDC was the flavour of the day closing up Rs.5 at 130.40, its highest close for this year. It traded 88.1 million shares, nearly 35% of all shares traded today.MCB closed at its highest ever at 386.85.
The KSE-100 index doesn’t do things by halves. On August 27th  it was totally oversold with a low of 11,852 and now it is heading for being quite overbought at nearly 14,500. With only one more trading session this week before the Eid closure, the Karachi Stock market could well close on a higher note, but a possibly vicious correction is due anytime now.

News : Shell has started much awaited offshore drilling in Indus Block this week. "With pre-drill resource potential of 300mmbbl oil, Shell drilling in Anne-1 well in Pakistan’s ultra-deep offshore region commenced this week", an analyst at KASB Securities said in its recent report.Oil and Gas Development Company (OGDC) and Pakistan Petroleum Limited (PPL) carry 30 percent and 20 percent stake respectively. The exploration potential in Pakistan’s offshore is believed to be high… Aaj News

The legal merger of PICIC, PICIC Commercial Bank and NIB Bank will be completed by the end of current year, banking sources said here Tuesday.They said the name of the merged entity would be decided later after  market research. It may be noted that NIB Bank, a subsidiary of Singapore-based Temasek Holdings, had acquired PICIC Group on July 1, 2007, for Rs 20.5 billion equivalent to $342 million… Daily Times

Upper Cap : Pakistan Refinery 

Market Low : 14,366.99 High : 14,536.75

Market Close : 14,484.56 — 117.56 points up

The KSE-100 index opened with a "morning glory " above 14,300 and stayed positive all day closing on its current all time high of 14,368. As expected the landslide victory of G.Mush took the index rocketing up, and now there is talk of 14,900 coming soon. 2moro’s index is anyone’s guess as the market is riding in uncharted territory now. Despite being highly overbought, the current euphoria could see the market above 14,500 this week. A good correction is due at anytime.

News : Agost Bernard, an associate director at Standard & Poor’s in Singapore, comments on Pakistan’s presidential election, and prospects for the economy. Bernard commented during an interview with Bloomberg today. "The election was part of the process of re-electing Pakistan’s president for a new term." It was not just symbolic but very significant and it was important for policy continuity given the track record of this administration and especially given the considerable uncertainty over the past six months or so.'’
On the prospects for Pakistan’s economy: "One of the hallmarks of this administration has been its very strong focus on the economy. "The Pakistan economy has undergone considerable transformation over the past seven or so years with structural reform including privatization, liberalization, opening up for trade.'’ Source : Bloomberg

The Ministry of Petroleum and Natural Resources has allocated gas to ‘Engro Energy Pvt Limited’ (EEPL) for a 226.5 MW power generation plant to be located at Qadirpur (Sindh)… Aaj News

UPPER CAPS : Arif Habib Sec / Arif Habib Ltd. / Bank Alfalah / MCB / Askari Bank / JOVC / Nishat Mills / Pakistan Refinery

Market Low : 14,099.30 High : 14,368

Market Close : 14,368 – 268.70 points up 

The KSE-100 index headed to test its all time high of 14,290 and fell short with a high of 14,272. It then dipped down to 14,027 and closed at the same level as yesterday at 14,099. Askari Bank was the volume leader of the day with 32.9 million shares traded. Whether that was the current correction for an overbought market remains to be seen next week. With the current sentiment the Karachi stock market should test its high and go further.

News : The Securities and Exchange Commission of Pakistan (SECP) has filed a case in the District and Sessions Court, Karachi, against a member of Karachi Stock Exchange and three of its clients, accusing them of illegal trading in the shares of Kot Addu Power Company Limited (Kapco).The case was filed on the basis of a SECP inquiry report, in which it said that unusual trading activity was observed in the scrip of the Kapco during January 24 to May 25, 2007… Business Recorder

The Securities and Exchange Commission of Pakistan (SECP) has imposed a fine of rupees five million on Zafar Moti Capital Securities Limited (ZMCS) and Zafar Siddiq Moti, Chief Executive of ZMCS for operating an illegal outlet…Brief facts of the case are that the Commission received various complaints from investors (hereinafter referred to as "Complainants"), alleging that Tariq Saeed of T.M. Finance Services was dealing in securities for the clients/investors in an illegal and unlawful manner, through ZMCS… Business Recorder

The International Power (IP) of UK has given 90 days to Government of Pakistan (GoP) for settlement of Kapco shares dematerialization or face legal proceedings, sources close to Privatisation Minister Wasi Zafar told Business Recorder here on Thursday."Should we not hear back from you by the end of 90 days, then under the terms of shareholders’ agreement, approval to transfer is deemed to have been given by the GoP," the sources quoted ASJ Ramsay, director and company secretary, National Power (Kot Addu) Limited (NPKAL) as saying in a letter to Privatisation Minister Wasi Zafar… Business Recorder

SPOT : Hubco + JOVC

Market Low : 14,027.92 High : 14,272.91 
Market Close 14,099.30 – 0.64 points down

The KSE-100 index made a high of 14,138, dipped down to 13,992 and closed up at 14,099, one of only six closes above 14k so far. National Bank was the flavour of the day with 30.6 million shares traded out of a total of 243.8 million. Engro made another all time high close at 296.70. Despite being highly overbought the market is holding on and closing higher daily and heading to test its previous high There could be some selling in 2moro’s Friday show. Upside resistance is 14,200-14,290 and downside support from 13,970-13,825.

News : Engro Chemical Pakistan Limited has signed a rupee syndicate loan of Rs 18.3 billion and an Islamic US dollar facility worth 150 million dollars marking the financial closure of its landmark financial plan to raise approximately $1.0 billion to construct a brand new world class Ammonia, Urea fertiliser complex at Daharki, District Ghotki, Sindh…The participants of the Islamic US dollar Facility are Dubai Islamic Bank, Citi Islamic Investment Bank, Standard Chartered Bank, National Bank of Pakistan, Habib Bank Limited and SAMBA Financial Group…The new Ammonia, Urea fertiliser complex will have estimated capacity of approximately 1.3 million tons of urea per annum….Engro’s market share for Urea is expected to increase from 19% today to 35% in 2011 when the new plant will be operational… Aaj News

Upper Caps : Bank of Punjab / NIB Bank

Market Low : 13,992.83 High : 14,138.84

Market Close : 14,099.94 – 53.93 points up

The KSE-100 index has recovered over 2,200 points from its recent fall and looks poised to test its previous high of 14,290. OGDC has been carrying the market upwards with its high imbalanced index weightage and after finally waking up from a sluggish 6 months, closed at 125.50. Engro closed at its all time high of 282.95. The KSE-100 index closed on its high for the 2nd consecutive day.The market is getting quite overbought and should correct soon.

News : The Finance Ministry has withheld Rs 22.5 billion, which payable to the oil marketing companies (OMCs) as differential on diesel and other petroleum products prices. As on September 30, the government owed Rs 12.1 billion to PSO, Rs 4.5 billion to Shell Pakistan, Rs 1.7 billion to Shavron and around Rs 4 billion to other companies…Source : Aaj News

Upper Caps : BAFL /ENGRO / Attock Refinery

Market Low : 13,882.30 High : 14,045.23

Market Close : 14,045.23 — 123.15 points up

The market opened up yet again and closed on its high of 13,921 . July 16th was the last time that the KSE-100 index closed at these levels. OGDC was the volume leader of the day with 27.3 million of a total of 285.8 million shares traded. The Karachi Stock market has risen 593 points since September 27th and while its likely to test 14k 2moro, some correction is due soon  as its overbought. However, if things go well this week and G.Mush is elected , expect to see a new all time high in the near future.

Pioneer cement will announce its results 2moro. 

News : The Privatisation Commission (PC) intends to complete global depository receipts (GDRs) of National Bank of Pakistan (NBP) and Pakistan Petroleum Limited (PPL) by end of the current calendar year…PC expects that some $800 million to $1 billion would be generated through GDRs of both NBP and PPL that would help meet the privatisation targets in the current fiscal year, he added. GDR of the NBP is expected to be completed during the month of November 2007 as the relevant preparations are being completed… Daily Times

Cement sales rose by 34 percent during to the first quarter (July-September) of current financial year over the corresponding period of last year on the back of expanding local demand as well as higher exports…Of the total dispatches, local cement sales depicted 21 percent growth at 5.7 million tonnes as against 4.8 million tonnes previously…On the export front, analysts see bright prospects for the cement sector as Russia is reportedly eyeing to import cement from Pakistan as well… Daily Times

Furnace oil price has shot up by Rs 1,200 to Rs 29,606.75 per ton from Rs 28,406 in the domestic market due to soaring international prices, dealers said. Two leading oil marketing companies–Pakistan State oil (PSO) and Shell Pakistan–on Monday raised furnace oil prices by some 5 percent… Source : Aaj News

Upper Caps :JOVC / NIB Bank / Maple Leaf Cement

Market Low : 13,737.47 High : 13,921.08