13,239
November 19, 2007
The KSE-100 opened up and then sank down to a low of 12,881.The market then made a strong recovery to close up on its high of 13,239. The recovery was based on the news that the SC dismissed 5 of the 6 main petitions filed to challenge G.Mush’s re-election. Also a change in the E&P formula (see below) led to a big upward move of 3.8% in OGDC which took the whole market up as well. Pakistan Oilfields hit its upper limit and PPL was up by Rs.9.85. Volumes were double Friday’s at 129 million and the majority of the blue chips closed up. Upside resistance is 13,400-500.
News : The Economic Coordination Committee (ECC) of the Cabinet has removed $50 a barrel limit for buying crude oil from exploration and production (E&P) companies and fixed it on 50/50 sharing formula. The new formula provides that the prices of crude oil over and above $50 a barrel would be equally shared by the Government of Pakistan (GoP) and the exploration and production companies. This formula is basically compensation for E&P having old leases in different areas. Now when crude oil prices are ranging between $95 and $98 a barrel in the international market, the crude oil price for the leases covered under the new formula would be roughly $75 a barrel… Aaj News
Upper Caps : POL / JOVC / Arif Habib Ltd
Market Low : 12,881.83 High : 13,239.87
Market Close : 13,239.87 — 157.86 points up
