12,452
June 26, 2008
The KSE-100 index made a high of 12,609 and closed at 12,452. As expected yesterday, there were quite a few lower caps and the market cooled off today with some profit taking. There could be some weekend selling 2moro as well. Oil shot up over $140 based on a weak dollar and irresponsible remarks from OPEC’s president Chakib Khelil, who said that prices could rise to $150-170 during the summer (see the article below). The market’s next upward resistance is 12,550 and a close above that would head towards 12,900. Given its current 1% downside, it could get there soon.
News : The government has asked the Oil Marketing Companies (OMCs) to submit proposals for setting up new mechanism for profit margin in the proposed oil pricing formula… While on the other hand, the OMCs have opposed the possible move by government to freeze their margin…The government believes that the profit margins of OMCs were fixed when the oil prices were low and the gains of these companies were also less, however the rising oil prices in the international market have caused increase in the margin of OMCs.
Government wants to maintain of OMCs margin at 3.5 percent but intends to change the basis of its determination that will freeze the margin of OMCs. But OMCs are not in favour of it and therefore the meeting remained inclusive… Daily Times
The president of OPEC, Algerian Energy Minister Chakib Khelil, forecast on Thursday that oil prices could rise to $150-170 a barrel during the northern hemisphere summer.If there were real demand for extra oil, the Organization of Petroleum Exporting Countries would do what was needed to satisfy it, he said, affirming that there was enough oil in the world for about the next 50 years. “I predict probably prices of $150 to 170 this summer. It (the market) will probably fall a bit towards the end of the year,” … Daily Times
The Pakistan Credit Rating Agency (PACRA) has upgraded the long-term and short-term entity rating of NIB Bank Limited to A1+ (A One Plus)… Source : The News
Market Low : 12,416.08 High : 12,609.32
Market Close : 12,452.08 — 21.79 points up.
