KARACHI STOCK MARKET NEWS

The week began at 5,573 and the Karachi stock market dipped down below 5,400 on fears of the accounting process for all companies for their last quarter results. On Friday the index rose 3.5% on the news that the SECP had relaxed the the accounting treatment for equity securities under the International Accounting Standard ( IAS) (see article below) . Now that the issue has been clarified and the relaxation given until Dec.31st 09, there should be a boost in the market in the coming week across the board. Results for next week include MCB, PSO, & ICI Pakistan.

The Securities and Exchange Commission of Pakistan (SECP) has granted relaxation in the accounting treatment for equity securities held by the companies under the head ‘Available for Sale’ as required under International Accounting Standard "Financial Instrument: Recognition and Measurement" (IAS 39)…According to details issued by the SECP, the relaxation is valid till December 31, 2009 and has been granted in the light of representations from various stakeholders including Mutual Funds Association of Pakistan (MUFAP), Insurance Association of Pakistan (IAP), Pakistan Banking Association (PBA), Leasing Association of Pakistan (LAP), Modaraba Association of Pakistan (MAP), Karachi Stock Exchange (KSE) and the corporate sectors….The final decision on this issue was taken by both regulators unanimously and simultaneously so that the uncertainty that had recently been generated on this issue should come to an end as many companies were in the process of finalising their annual accounts and half yearly accounting statements, the SECP said…. Aaj News

The Chairman of the Federal Board of Revenue (FBR) Ahmed Waqar has said that a fund worth Rs75 billion is being set up to bail out Pakistan State Oil (PSO) from the financial crunch….Chairman FBR said that the fund would be constituted by the end of this month, which would help PSO pay its debts and further make payments to refineries… The News