KARACHI STOCK MARKET NEWS

The Karachi Stock market’s opening was delayed this morning as a meeting was being held to discuss whether the index would be frozen at 9500 and other emergency market issues. As expected the SECP refused to freeze the market at 9,500 and the market dipped down to 9,556 and recovered rapidly towards the close to close up at 10,042. The market was boosted by the news re: wellhead gas prices increasing by 35% in the Sui field. This boosted the energy sector and therefore the market. The meeting between Zardari and Sharif amounted to fuck all as usual, and there will be another one 2moro. The next upward resistance is 10,250.

Dividends : Hubco Power Co : 10% Cash EPS : 2.25

Pakistan Petroleum Ltd. (PPL) is due to announce its results 2moro.

News : The wellhead prices have broadly risen by 10-35 percent on the back of higher Arab Light Crude Oil and HSFO prices in the last 6 months…OGRA has issued new gas wellhead prices for the period 1HFY09 (Jul-Dec 2008) of 12 major gas producing fields out of 49,…Well head gas prices in the country are fixed on half yearly basis in January and July every year, depending on the average Arab Light crude and HSFO prices during first six months of the preceding seven months period. The Arab Light average during this period stood at $98.4/barrel versus $75.2/barrel in the last six months, depicting a massive growth of 36 percent…Wellhead price of Sui has been increased by 35% under this revision, as there is no cap on the wellhead pricing of this field. Pakistan Petroleum Limited (PPL) with a 100% stake in Sui is the primary beneficiary of this revision. The field contributes around 64% in PPL’s total gas production… Daily Times

The “roll-over facility” shall now be allowed on the release of CFS MK-II transactions by financee at any point of time during the entire contract period. Moreover, such roll-over facility shall also be allowed on the “force release” of CFS MK-II contract ie, on the 23rd business day of such contract. The said changes are also catered in the CFS MK-II system and this facility will be available from August 6th, 2008…Margin eligible securities: KSE has revised the list of margin eligible securities. Deposit against exposure margins, market-to-market losses (where applicable) and special margins in the revised list of securities will be implemented effective from August 18th… The News

Hub Power Company Limited (HUBCO) on Monday announced that it has acquired 75 per cent controlling interest in Laraib Energy Limited (LARAIB) and will be setting up country’s first hydropower project by an independent power producer (IPP).The project is an 84mw, run of the river hydropower generating complex being set up about eight km downstream of Mangla Dam, HUBCO said in a notice issued to Karachi Stock Exchange… The News

Upper Caps : PPL / BAFL

Lower Cap : AHL 

Market Low : 9,556.96 High : 10,042.47

Market Close : 10,042.47 – 189.29 points up