12,035
July 3, 2008
More low volume trading saw the KSE-100 index post its 5th consecutive negative close today. Only 9 million shares were traded. The ruppee hit a new low today and nearly crossed Rs.70 to the dollar. Its seems likely that there will be another negative close 2moro being the end of the week and no positive news on the horizon for the moment.
News : The urea price on Thursday shot up by Rs 70 per 50 kg bag in the domestic market in the wake of recent gas tariffs rise by 31 percent… Sources said, "the leading urea companies including Fauji Fertiliser and Engro Pakistan have raised the urea commodity prices by Rs 35 to Rs 625 per 50 kg bag which earlier stood at Rs 590 per 50 kg bag…At present, local urea production stands at some four million tonnes annually against the demand of 4.5-5 million tonnes in the country. Fauji Fertiliser operates four plants capturing 60 percent of the market share with production of about three million tonnes annually. Engro is in the second position, producing some one million tonne urea annually. The remaining gap between supply and demand is filled up with imported urea. The government provides some Rs 1,000-1,200 per 50-kg bag subsidy on imported urea to ensure availability of the commodity at a reasonable price to growers. Urea is being imported at Rs 1,600-1,700 per 50-kg bag, while importers are selling it at Rs 625 per 50-kg bag… Aaj News
The dialogue between the government, Oil Marketing Companies (OMCs) and oil refineries regarding the new oil pricing formula remained inconclusive Thursday and government has called another meeting on July 14th for further consultation… OMCs representatives said that cost of doing business in the country was increasing and freezing of margin would further aggravate the situation…. They said that the delayed payment of price differential claims by government had caused distortion in their margins. Sources said that OMCs also proposed the government to review the oil pricing formula after every six months to adjust the margins and taxes on petroleum products in the current scenario of oil price hike in international market…Sources said that oil refineries are ready to withdraw the 10 percent deemed duty on high speed diesel but they have at the same time demanded an incentive of Rs 12 billion either by increase in profit margin or relaxation in taxes. Oil refineries warned that if the deemed duty is withdrawn and they were not offered any other alternative incentive, their business in Pakistan would be shut down…. Daily Times
Market Low : 12,035.21 High : 12,126.10
Market Close : 12,035.21 – 90.89 points down
Another day of piteous low volumes with the KSE-100 index trading only 11.9 million shares. The market has closed down for the fourth consecutive session and has lost 326 points since Thursday. The only solace here is that prior to the new measures with a 1% downside , the current four session loss would have been incurred in one. The erosion has been slowed down and bearing in mind that as the other world and regional markets are getting fucked badly at the moment, the oil price rearing its ugly head at $144 today and the dollar sliding daily, 1% down a day is not so bad ! If this carries on 12k will break by the end of the week. A Govt. that cannot calculate properly (CNG price issue), let alone decide on anything, doesn’t help matters either !
