11,870 — 12k breaks !
June 19, 2008
The KSE-100 index got gang-banged today, making a low of 11,704 and closing 390 points down at 11,870. This was predominantly due to a rumour circulating, regarding doubling the price of CVT. The market is on a very weak footing with all kinds of uncertainty, political and financial, therefore the slighest cough or fart unleashes panic . It seems 500 points down in a day is par for the course at the moment. More irresponsible is the lack of any clarification on the CVT issue which seems unlikely to be implemented as it would have been mentioned at the time of CGT being exempted. Whether there will be a pullback 2moro or further erosion is anyone’s guess ! Buy large jars of Vaseline and apply copiously !!
Dividends : Pakistan Petroleum Ltd. (PPL) : 105% Cash
News : Malayan Banking Berhad (Maybank) on Thursday remitted $666 million (Rs 44 billion) to Pakistan (on Monday value) as payment for 15 percent shares of MCB Bank Limited. Maybank had signed an agreement for the purchase of upto 20 percent ordinary shares of Nishat Group on May 3rd, 2006….Malaysia’s largest financial institution has taken a long-term view as the MCB fundamental strength continues to be unaffected. With time deposits of only 10 percent compared (to 25-30 percent in the industry) and 90 percent of current and saving deposit - MCB continues to outperform its peers with low cost deposits… Aaj News
A Spokesman for the Attock Refinery Limited on Thursday warned that in case of total withdrawal of deemed duties on High Speed Diesel by the government, the refineries would suffer a huge revenue loss of over Rs 12 billion, which would simply make the refineries unoperational. He added that any cut in deemed duties of 10 percent on HSD products by local refineries would seriously impair refineries continued operations leading to substantial cut in local production and in turn would result in importing high volumes of petroleum products, further burdening the foreign exchange reserves of the country… Daily Times
Lower Caps : BOP / BAFL / MCB / AICL / NML / NBP / UBL / ….
Market Low : 11,704.93 High : 12,261.07
Market Close : 11,870.95 – 390.12 points down
