7,295 - volatility
April 9, 2009
A volatile day at the Karachi Stock Exchange with the market dipping down to 7,136 and then staging an incredible recovery of 352 points to make a high of 7,488. Eventually the gains gave way to a lower close at 7,295. Volumes were slightly lower today with 280.5 million shares traded. The market could well test 7,100 again before continuing its momentum.
Pakistan’s benchmark stock index may rise to 9,000 by the end of the year amid signs of an improving economy, extending gains that have made the market the world’s third-best performer this year, Credit Suisse Group said. Government data will probably show inflation slowing to 18.5 percent last month from 21.1 percent in February, allowing the central bank to lower interest rates even as the nation’s external account and foreign currency reserves improve, analyst Farid Khan said in a report today. The forecast of 9,000 means the Karachi Stock Exchange 100 Index may rise 23 percent from yesterday’s close. The KSE 100, as the index is also known, has rallied 25 percent this year, lagging behind only measures in Peru and China, according to data tracked by Bloomberg. The Pakistani gauge plunged a record 58 percent last year amid political upheaval. Stocks on the index now trade at 6.1 times estimated 2010 earnings, the cheapest in Asia…. Bloomberg
A notice issued by Atlas Bank said the majority shareholders of SPCB had entered into a memorandum of understanding with the sponsors of Atlas Bank for merger of Atlas into SPCB, subject to State Bank of Pakistan’s and other regulatory approvals…Mergers of small banks had been widely anticipated in the wake of enhanced paid up capital requirements set by the central bank for banks last year.
The SBP had decided in September last year to raise minimum paid up capital requirements for all locally incorporated banks to Rs 23 billion (net of losses) to be achieved in a phased manner in order to further strengthen the solvency of individual bank / DFI. The paid up capital requirement is Rs 6 billion by the end of 2009; Rs 10 billion by 2010; Rs 15 billion by 2011; Rs 19 billion by 2012; and Rs 23 billion by 2013… Daily Times
Market Low : 7,136.89 High : 7,488.70
Market Close : 7,295.98 – 44.32 points down
