About the Karachi Stock Market Blog Daily updates on the Karachi Stock Market, with news, company dividends and KSE-100 index movements.The rollercoaster of a day trader's dream /nightmare riding the KSE-100 index. More than 850 posts and counting ...
The market finally corrected, having made a high of 7,073 and closed down at 6,860.
News : The Karachi Stock Exchange (KSE) has re-composed its benchmark KSE-100 index effective from April 1st…. five companies which will be included in the KSE 100 index are Allied Rental Modaraba, Balochistan Wheels, Dreamworld Limited, Engro Polymer and Chemicals and KASB Bank. The companies to be removed from the index will be First Habib Modaraba, Agriauto Industries, Mybank, JS Investments and Pioneer Cement…. Source : Daily Times
The market continued its upward movement and made a high of 7,076, closing up at 7,015. The total volume of shares traded was 241.6 million, and the market gained another 3.11%, taking the total to an 18% increase since March 13th.
Another successful week for the market as the KSE-100 index closed up at 6,803 on Friday. From last Friday’s session last it has risen 463 points , some 7% . Despite all the positive news flowing in and a possible test of 7000, the market looks ripe for some correction which will inevitably take place in the coming week.
The KSE-100 index made a high of 6,725 and closed lower on profit taking towards the end. The market is still quite overbought and could well see some correction in 2moro’s weekend selling.
The KSE-100 index opened up with a gap on the news that MSCI will reclassify the MSCI Pakistan Index as MSCI Frontier Markets Index (see below). Making a high of 6,622, the market closed 4.36% higher.
Dividends : Pakistan Petroleum Ltd : 50% Cash
News : MSCI Inc (NYSE: MXB), a leading provider of investment decision support tools worldwide, including indices and portfolio risk and performance analytics, announced today, following a consultation with the investment community, the reclassification of the MSCI Pakistan Index as MSCI Frontier Markets Index. Some participants to the consultation have positively highlighted the return to normal trading conditions on the Karachi Stock Exchange and the resulting increased liquidity. However, a majority of market participants stressed the need for the Pakistani equity market to function without any trading disruptions for some time as a condition to any potential consideration of the MSCI Pakistan Index for re-inclusion in the MSCI Emerging Markets Index. In addition, the MSCI Pakistan Index no longer meets the size requirements set for the MSCI Emerging Markets Index. Consequently, the MSCI Pakistan Index will be included in the MSCI Frontier Markets Index as of the close of May 29, 2009 to coincide with the May 2009 Semi-Annual Index Review… MSCI Barra
This has been one of the more successful weeks for the Karachi Stock market in a long time . From last Friday ( 13th ) to the 20th , the market has risen 590 points (over 10% ). The end of the week saw some profit taking as the market was becoming quite overbought . There could be some more downside towards 6,200.
News : Some details on the new Petroleum Policy :
The government on Friday raised the wellhead gas price cap to $100 per barrel of crude oil price, from $45, in the new ‘Petroleum and Exploration Policy 2009′, to attract investment announced here. However the floor price cap has been placed at $10 per barrel of crude oil… Aaj News
Another day of upside for the Karachi Stock market making a high of 6,286 . The last time the market was at these index levels was on 29th Dec. 08, on its way down. It’s possible that there could be some correction coming this week as the market has risen 515 points in the last 3 sessions (nearly 9%) . The next upward resistance is around 6,450.
Dividends : National Bank of Pakistan : 20% Bonus + 65% Cash - EPS : 17.48
National Bank of Pakistan (NBP) reported on Wednesday an 18.8 percent fall in its 2008 full-year profit which analysts attributed to higher provisioning for bad loans. NBP reported in a statement to the Karachi Stock Exchange (KSE) a net profit of 15.46 billion rupees ($192.6 million) for the full year to Dec. 31, down from 19.03 billion rupees the previous year… Aaj News
Italian oil and gas group Eni aims to double its oil production in Pakistan over the next five to six years from the 56,000 barrels of oil equivalent in 2008, Chief Executive Paolo Scaroni said on Wednesday… Aaj News
The KSE-100 index continued on its upward march making a high of 6,194, based on the recent decision to reinstate Chaudhry as the CJ. While the market is going up, businessmen have been screaming blue murder that the 5 days of the ‘’ long march " cost them Rs.50 billion in losses with containers being used as blockades and shipments being delayed due to the chaos. So now we have a Rs.50 billion new Chief Justice of Pakistan ! Hope its worth it…
News : Pakistan Petroleum Limited (PPL) has adopted an aggressive exploration strategy to replenish and enhance its depleting hydrocarbon reserves. “We have a plan to drill at least 100 exploratory wells during the next 10 years to expand our oil and gas reserves and increase our share in the country’s total oil and gas supply,” said Managing Director PPL Khalid Rehman…Presently, PPL has 12 production fields in the country, four of these are PPL operated while eight are under joint ventures with leading international players including ENI, OMV, AMACO, MOL and Hungary…. The News
The Karachi Stock market opened up with a full erection on the news that the ex CJ Chaudhry will be restored as the new CJ on March 22nd. The market flatlined for the rest of the day and closed 5.44% up at 6,063. Its possible that the euphoria could continue for a day or two and breaching 6,200 will be a positive move for the KSE-100 index.
The week ended on a positive note after the Karachi Stock market made a low of 5,557 and closed up at 5,750 today. The market has been firm in the last two days recovering the slide during the week despite all the political crap that has been taking place. Indications of an interest rate cut taking place soon, has been the driving force for the market.
News : The Securities and Exchange Commission of Pakistan (SECP) has granted permission to two REIT Management Companies (RMC) in Pakistan…. SECP had received four applications for formation of RMCs out of which two companies ie Arif Habib REIT Management Company Limited and AKD REIT Management Company Limited have been granted permission…REITs in Pakistan are introduced in the form of a trust where the property itself will be vested in the name of the trustee and REIT Management Company (RMC) will look after the Real Estate on behalf of the unit holders. RMC will have a minimum of 20 per cent stake in the scheme and will receive a management fee for provision of their services. People will be allowed to invest through units of the REIT Scheme which will be listed on stock exchange… Aaj News
Arif Habib Investment Management Limited (AHIML) has entered a licensing agreement with Dow Jones for the ‘Dow Jones SAFE Pakistan Index’ to underline AHIML’s proposed fund namely "AH Dow Jones - SAFE Pakistan Index Fund," an open-end Index Tracker Fund. The Dow Jones SAFE Pakistan Index measures the performance of Pakistan traded securities and is a sub index of the "Dow Jones SAFE 100 Index". Dow Jones Indexes and the South Asian Federation of Exchanges (SAFE) have entered a joint marketing agreement pursuant to which Dow Jones Indexes acts as the exclusive licensor of the Dow Jones SAFE Indexes. The launch of Dow Jones SAFE 100 Index was held in Abu Dhabi on March 11, 2009… the Dow Jones SAFE 100 Index includes 50 Indian, 39 Pakistani, 3 Bangladeshi, 5 Mauritanian and 3 Sri Lankan companies… Aaj News
Dividends : United Bank Limited’s profit after tax stood at Rs 8.4 billion in 2008, translating into earnings per share of Rs. 8.26…The bank achieved a consolidated profit before tax of Rs 14.1 billion in 2008, 2 percent higher than last year’s profit. Profitability in 2008 was partly impacted by the decision to charge 50 percent of the impairment loss on the equities portfolio amounting to Rs 1.88 billion against this year’s P&L statement, although the State Bank of Pakistan has allowed banks to defer booking the loss till 2009. Without the impairment loss, the bank’s profit before tax would have reached Rs 15.9 billion, 15 percent above last year’s profit… Daily Times
News : The Hubco Narowal Plant will start commercial operation by March 2010…Hubco, one of the largest independent power producer in Pakistan is setting up this combined cycle power plant based on reciprocating engines technology with an investment of about $300 million and having an ISO installed capacity of 225MW at District Narowal, Punjab.The plant will start supplying electricity to national grid from end of March 2010… Daily Times
The market lost 1.8% today, sliding further downwards towards 5,557. It will probably remain shaky till all the political bullshit subsides.
News : The insurance business has declined by 30 percent in the country due to slowing down of economic activities in the recent global recession. The international re-insurers have cut the rates of commission of local insurance companies, while on the other hand the 5 percent increase in the CED to 10 percent had put an extra burden on the insurance business...Aaj News
The Karachi Stock market closed in the red today. 2moro is a holiday and therefore a possible wait & see approach is being taken for the lawyers " long fart " on the 12th, whether there will be violence, more economic disruption etc etc.
News : Pakistan’s equity market was once famous for its depth that is liquidity. Due to sufficient volumes, the Pakistan market up till last year was able to sustain large orders without impacting the market price. But that is not the case now. Due to unwarranted three-and-a-half month closure of market coupled with the absence of low cost investor friendly leveraged products, the market activity has declined substantially. Few years back Pakistan was one of the most actively traded stock market in Asia with turnover velocity (turnover divided by market capitalization) of 380% in 2005. That is investors used to trade four times the value of market in a year. In other words, they were trading 20 times the shares available in the market (free float). These higher volumes in the past at the one hand provide the much needed liquidity and depth to the market but on the other hand this excessive volume signalled that the market was over speculative thanks to easy availability of funds through badla and deliverable single stock futures. But that was something that attracted investors’ attention as the market was providing opportunity to enter and exit without any major impact on share prices.Right now turnover velocity is only 60%. With average daily volume of approx Rs4 bn (US $50mn) a day in first two months of calendar year 2009, the investors are turning less than the size of the market in a year which has shrunk from US $75 billion last year to only US $22 bn now… Aaj News
The Karachi Stock market made a high of 5,924 and closed lower after some profit taking. The index looks like it might struggle its way towards 6200, depending on what further political bullshit transpires.
Dividends : Shell Pakistan has reported a loss after tax of Rs5.164 billion during the first half of 2008-09 compared to profit after tax of Rs1.689 billion in the corresponding period last year. According to the financial results reaching Karachi Stock Exchange (KSE) here on Thursday, the oil marketing company has recorded a pre-tax loss of Rs8.420 billion during the period ending December 31, 2008. Loss per share stood at Rs75.41 during the period under review against an earning per share of Rs24.66 in the same period last year… Source : The News
News : The Petroleum Ministry on Tuesday agreed to increase deemed duty from 7.5 percent to 10 percent for oil refineries with an upper cap at $80 per barrel crude oil price in the global market. According to new proposed formula, oil refineries will not be able to get 10 percent deemed duty if crude oil price exceeds $80 per barrel in international market…it was also decided in a meeting that the government would provide loans to oil refineries to expand their operations according to their capital value. The oil refineries will have to pay these loans after a five-year period. Oil refineries are not currently meeting the international standards even after receiving 7.5 percent deemed duty… Aaj News
The Continuous Funding System (CFS) committee has proposed to ban the existing CFS Mk-II and Deliverable Futures in the country’s stock exchanges with immediate effect. The committee has proposed to introduce Cash Settlement Futures (CSF) and other investor-friendly products of international standards.The CFS committee in its meeting held here on Monday decided that the final proposal in this regard would be sent to the Securities and Exchange Commission of Pakistan (SECP) during this week for approval...Aaj News
(There are no graphs for the last week as the KSE website has changed and its daily index chart is embedded in Flash. If anyone knows of an alternative website, with a daily chart for the KSE-100 index that is easy to save as a png. file , then please leave a comment.)
The week opened at 5951 and dipped down to 5,407 to close at 5,727. Wednesday saw the Karachi Stock market crash, down 5%, on Sharif’s court dismissal and then it recovered by the first half on Friday. The bulk of the result season is over and the next week depends on further political turmoil, if any.
Dividends : Attock Petroleum, marketeer of petroleum products on Friday came out with Rs1.47 billion profit for July-Dec 2008, defying the fallout from a sudden decrease in the international oil prices. The company also announced an interim cash dividend of Rs10 per share for the first half of fiscal 2008-09, which saw profit going up by 35 per cent as compared to the same period of previous year. Interestingly, the profit for the second October-December quarter increased 27 per cent over the same period of previous year despite the fact that it was the worst time for companies to operate as the oil price had plunged and circular debt swelled.
Pak Oilfields Ltd (POL) has posted a profit after tax of Rs1.605 billion for the half-year of 2008-09 and has declared an interim cash dividend of Rs8 per share. According to financial results of the company despatched to the Karachi Stock Exchange on Friday, the pre-tax profit was estimated at Rs1.866 billion for the period ending December 2008. The earning per share has declined Rs6.79 for the period under review… Source : The News
The Karachi Stock market opened up with a full erection on the news that the ex CJ Chaudhry will be restored as the new CJ on March 22nd. The market flatlined for the rest of the day and closed 5.44% up at 6,063. Its possible that the euphoria could continue for a day or two and breaching 6,200 will be a positive move for the KSE-100 index.
