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 ...
News : Banks’ and DFIs’ profits are likely to witness a significant increase of some 10-12 percent in 2009 with the State Bank’s move to allow them to avail 40 percent benefit of Forced Sale Value (FSV) of collateral for calculating provisioning requirement,…"SBP’s moves would put positive impact on the banking industry, which is already facing severe problems including slow deposit growth and rising NPLs," said a banker. At a time when banks’ profits are facing pressure from rising NPLs, the availability of 40 percent FSV benefit would help improve to improve earnings, he added… Aaj News
News : The State Bank of Pakistan continues to deny the MCB Bank approval to its acquisition of the Royal Bank of Scotland Pakistan as sponsor shares have yet to be deposited in a blocked CDC account as required by the central bank. It had emerged last week that the central bank was unwilling to grant approval to the deal because MCB Bank’s sponsor shares had not been deposited in a Central Depository Company account, a requirement introduced by the SBP on May 22, 2008….MCB Bank had purchased almost all shares of RBS Pakistan in early August this year for $87 million or Rs 7.2 billion. MCB Bank acquired 1.707 billion (1,707,107,891) ordinary shares for a cash price of Rs 4.22 per share. As a result of the transaction, the total number of branches of combined MCB and the acquired bank will increase to 1,139. The total consolidated deposits will increase to Rs 413 billion and consolidated gross advances to Rs 324 billion…. Daily Times
News : Under its expansion plan, after a successful acquisition deal with Mybank, Arif Habib Bank has now decided to purchase majority shares of Atlas Bank, sources in banking industry told Business Recorder on Friday. "Negotiations between the management of Arif Habib Bank and Atlas Bank Limited have been initiated for merger and deal is expected to finalise in the next three weeks," sources said.They said that Arif Habib Bank is keenly interested to enhance its nation-wide operation by acquiring some small banks, beside launching of new branches in major cities and rural areas…. Aaj News
Dividends : Pakistan Oilfields Limited (POL) has earned Rs 5.618 billion in the year ended on June 30, 2009 against Rs 8.616 billion in the previous year. The earnings per share of the company decreased to Rs 23.75 in the year under review over Rs 36.43 in the last year,…The sales of the company also dropped to Rs 15.082 billion during the year from Rs 18.245 billion in the last year whereas operating incomes also moved up during the year. The company also announced a final cash dividend June 30, 2009 at Rs 10 per share i.e.100 percent… Daily Times
Pakistan’s equity market recorded the highest return in a single quarter during July-September 2009-10 since the calendar year 2002—thanks to bullish sentiment triggered by IMF funding and foreign portfolio investment. During the 1st quarter of current financial year, benchmark KSE-100 index gained 2,187 points to close to 9,439.67 on September 30, 2009, making 31 percent improvement from 7,162.18 levels on June 30, 2009.“This was the highest return posted by the KSE-100 index in single quarter since CY2002,” analyst Syed Abid Ali at Arif Habib Securities pointed out and attributed it to positive stance by the international rating agencies, healthy foreign inflows, successful army operation in Swat and improving macroeconomic situation… Daily Times
Loss-ridden Mybank on Thursday announced the sale of 59.34 per cent shares to a Mauritius-based investment firm, which had recently acquired Arif Habib Bank… Mybank said a sale-purchase agreement was executed on September 30th to sell stocks to Suroor Investments Limited at Rs8 per share.The deal had been sealed at a premium over the price of Mybank’s listed share, which closed at Rs5.42 at the KSE on Thursday, Hussain Lawai, President of AHB said.He said the acquisition would help AHB to expand its outreach. “Mybank has 80 branches and combined with 34 branches of AHB the network will be strengthened across the country.” The News
Italy’s ENI is expanding in Pakistan with a new onshore gas concession and is in longer-term talks to bring gas from the Caspian Sea region to Pakistan, India and China, its CEO said on Wednesday.…Scaroni said ENI, which through its acquisition of Lasmo in 2000 is Pakistan’s first gas company, had just won the exploration block onshore of Sukhpur with local company PPL and Royal Dutch Shell… Aaj News
The handing over of Royal Bank of Scotland, Pakistan (RBS) to MCB Limited headed by Mian Mohammad Mansha has virtually hit snags because of the wrath of the incumbent regime, which is incensed over the non-cooperation by MCB Bank to resolve the issue of circular debt in energy sector…“The State Bank of Pakistan also showed its anxiety that the banks should not be run by the industrialists as it will not help ensure the level playing field for all business tycoons to have access to the credit lines.” The Central Bank has also expressed the concern that MCB bank is not being run under the corporate governance model, rather it is being run as a family entity….The official said that the Zardari regime had taken the refusal by MCB Limited very seriously and was all set to cut Mansha Group to size…“Mr Mansha will now face the music as the government will withdraw its deposits valuing Rs 13 billion in the MCB and will never give any business to the said bank.”…. Pak Observer
News : The Sindh government and Engro Power Generation Limited on Tuesday signed an agreement for mining and generating 600-1000 megawatts power from Thar Coal fields on a public-private-partnership basis. The agreement was signed by Aijaz Ali Khan, Secretary Mines and Mineral Development on behalf of Sindh Government and Asad Umer, CEO Engro Ltd and Khalid Mansoor, CEO Engro Power Generation….Under the agreement Sindh Government will make 40 percent and Engro will make 60 percent investment. The project envisages 600 to 1000 MW electricity and 2 percent of the profit would be spent on the welfare of local population. The project feasibility will be completed in 18 months…. Aaj News
MCB Bank Limited joined hands with Adamjee Life to offer Bancassurance products to MCB customers. Through this newly formed alliance, MCB will act as a distributor of Adamjee Life products to its customers, President MCB, Atif Bajwa said.He said in turn MCB’s association with Adamjee Life would facilitate the bank to meet such customer requirements… Daily Times
News : Pakistan’s credit rating outlook was raised to stable from negative by Moody’s Investors Service, which cited an increased International Monetary Fund loan.The IMF bailout “would help to safeguard foreign currency reserve adequacy against the risks of further deceleration in private capital flows,” Moody’s analyst Aninda Mitra said in a statement today. The loan will also help the country obtain bilateral assistance, he said.The IMF this month increased Pakistan’s loan package to $11.2 billion, approving an additional $3.2 billion to help revive South Asia’s second-biggest economy. Governor Salim Raza on Aug. 15 cut the central bank’s benchmark interest rate to 13 percent from 14 percent to aid growth….The changed outlook will have a “positive impact” on the stock market and may encourage foreign investment in Pakistan,… Bloomberg
Moody’s Investor Services raised the outlook on the long-term foreign currency deposit ratings of four Pakistani banks to stable from negative…The four banks include National Bank of Pakistan, the biggest by assets, Habib Bank Ltd., the second-biggest, United Bank Ltd., the third-biggest, and MCB Bank Ltd., the No. 1 by market value, it said…. Source : Bloomberg
Dividends : Pakistan’s Hub Power Co Ltd (Hubco) reported a net profit of 3.78 billion rupees ($45.7 million) for 2008/09, a jump of 45.4 percent from the previous year. Hubco, the country’s second-largest private power producer, earned net profit of 2.6 billion rupees in 2007/08…The firm also announced a final cash dividend of 2.0 rupees per share…Source : Aaj News
Pakistan State Oil, the nation’s biggest fuel retailer, posted a full-year loss as declining prices eroded the value of its inventory. The net loss in the year ended June 30 was 6.69 billion rupees ($80.8 million), or 39.05 rupees a share, compared with a net profit of 14.1 billion rupees, or 81.94 rupees, a year earlier,… Sales rose to 719.3 billion rupees, from 583.2 billion rupees…Pakistan State Oil also recorded a loss because of higher financial costs, Khan said. The fuel retailer borrowed more from banks to bridge a shortfall caused by 56 billion rupees in delayed payments for fuel purchases by state-run power producers, he said.The company’s loan costs rose to 6.23 billion rupees in the year ended June 30, from 1.37 billion rupees a year earlier… Bloomberg
News : Oil and Gas Development Company (OGDC) has discovered new reserves of natural gas in Ghotki city of Sindh province…. the new reserves were discovered at Gadu Block-1 in Ghotki. Daily supply of 282,000 cf gas is expected to come from this source after completion of the preliminary research…Source : The News
MCB Bank Ltd., Pakistan’s biggest lender by market value, agreed to acquire Royal Bank of Scotland Group Plc’s Pakistan unit for about $87 million to increase branches and its expertise in financial transactions.MCB Bank will buy 1.7 billion shares, or a 99.4 percent stake, at 4.22 rupees apiece before making an offer for the remainder,…Bank of America Corp.’s Merrill Lynch and KASB Securities Ltd. advised MCB on the transaction. Morgan Stanley advised RBS….The purchase of RBS Pakistan, which has 75 branches in 24 cities, will expand MCB’s network of outlets to 1,139, according to the statement. RBS had assets worth 108 billion rupees ($1.3 billion) as of Dec., 31, 2008… Bloomberg
The KSE-100 index finally closed above 8k and made its highest close since Dec.17th 08. The Karachi Stock market got a good hoist from the IMF news and the volume of shares traded increased to 155.5 million.
Dividends : MCB Bank has earned profit before tax of Rs 11.7 billion during the first half of the calendar year 2009. With 10 percent growth in profit Bank has announced cash dividend of Rs 2.5 per share…During the first half of the calendar year 2009, the Bank’s profit before tax closed at Rs 11.7Billion registering a significant growth of 10 percent over the reported profit before tax of corresponding period last year. Profit after tax closed at Rs 7.76 Billion translating into an EPS of Rs 11.22…. Aaj News
News : The Securities and Exchange Commission of Pakistan has approved the Draft of Margin Financing (MF).After reviewing the draft, the apex regulator…sent it back to the stock exchanges incorporating the comments of the stakeholders and asked the bourses to prepare the regulations governing MF, so that the product could be introduced as early as possible….According to sources, the important feature of the new system is that it eliminates the ‘systemic risk’, as the new system limits extended funding in one scrip, besides the system (clearing and settlement) is not responsible for the default of financee…. Daily Times
Pakistan’s largest bank, MCB Bank, will pay around $90 million to acquire the local operations of the Royal Bank of Scotland, a source with direct knowledge of the deal said on Monday…"We will pay around 7.5 billion rupees ($90.4 million) for RBS Pakistan," said the source, who declined to be identified as the deal has not yet been signed. "The share purchase agreement is likely to be signed in a day or two, maybe even tomorrow, in Dubai," he said. The price would be 0.76 times RBS Pakistan’s book value of 9.888 billion rupees, as of March 31st. "In terms of pricing, MCB seems to have struck a great deal and the bank may even book a gain on amalgamation of RBS into MCB," said Asif Qureshi, director at brokers Invisor Securities…Aaj News
Talks with the IMF have been successful in terms of the release of the 3rd tranche & an additional loan of $3.2 billion. As the market had been sitting on the fence awaiting the news, it should propel the KSE-100 index above 8k next week. The final upward trigger will depend on how many bps will be cut in the Monetary Policy announcement on August 15th.
News : A huge inflow of $19.146 million (Rs 1.55 billion) of foreign portfolio investment at the local equity market was recorded during the outgoing week ended August 7, 2009. This was the highest weekly net inflow witnessed by the market in last 15 months…offshore investors bought shares worth $25.2 million and sold shares worth $6.6 million during the week….Analysts believed that the foreign investors interest at the local market is reviving and they are coming back to invest here. They were expecting that more foreign portfolio investment would come in the local equity market as the Pakistan equity market is still cheaper as compared to other regional markets,…Aaj News
Askari Bank Limited announced on Friday that it had decided not to proceed with the merger of Mybank Limited with and into Askari Bank Limited…In June, Askari Leasing had announced its intention to merge with Askari Bank and at the same time intentions to merge Askari Bank and Mybank were also announced. Well-informed sources told Daily Times that one of the banks had a big infected portfolio because of which the two disagreed on the swap ratio. As a result, talks broke down… Daily Times
Petroleum giant Shell has agreed to participate with 4gas in Pakistan’s first liquefied natural gas (LNG) import project,With Shell becoming part of Mashal LNG project, it would open up sources of gas supply from around the world…British Shell and Carlyle Group’s 4gas separately showed interest when Mashal LNG was tendered in 2005. Subsequently, 4gas was issued exclusivity letter by the government that brought it close to the actual award of the project….The $700 million project comprises a floating terminal and storage tanks built onboard a ship, which will be chartered for the duration of the contract. All the investment is being made by 4gas. Work on the project, including dredging and pipelines, is slated to start by December 2009…. The News
The KSE-100 index made an intra-day high of 7,896 and closed up at 7,834. The market should break 7,900 and hold to go through 8k with some correction along the way. Perhaps the ‘’badla'’ issue will be sorted out before the result season ends, giving the market a much needed boost to sustain its daily gains.
Dividends : Lucky Cement has announced on Wednesday its fiscal year 2009 (FY09) results. It has booked profits of Rs4.6 billion, earning per share (EPS) of Rs14.21 versus Rs2.7 billion (diluted EPS of Rs8.28) in FY08 showed a handsome growth of 72 per cent. The company has announced a final cash dividend of 40%…. The News
News : The Securities and Exchange Commission of Pakistan (SECP) has imposed a fine of Rs2 million on United Bank (UBL) for failing to comply with the provisions of Listing Regulations of the Karachi Stock Exchange (KSE)…..The SECP had served a show-cause notice to the UBL on March 12 for allegedly placing financial results for the period ending December 31, 2008 on its website before dissemination of financial results to the KSE while the board meeting was still in progress….The News
News : The earnings per share of National Bank of Pakistan will receive a significant boost from the dividend announced by National Investment Trust, analysts say. NIT has announced better than expected FY09 dividend of Rs 3.25/unit. National Bank of Pakistan (NBP) has 453 million NIT units. "The bank stands to record dividend income of Rs 1.47 billion (EPS impact: Rs 1.23) in CY09F," said Raza Jafri, an analyst at AKD Securities in a report. He said CY09F EPS estimates for NBP had risen to Rs 14.96 following the announcement of NIT’s payout… Daily Times
News : The senior stock brokers would formulate the mechanism of collecting Federal Excise Duty (FED), which the government proposed to impose on services provided by the stock brokers at the rate of 16 per cent from July 1st. This was the outcome of a meeting that took place between the Karachi Stock Exchange delegation and adviser to finance minister Shaukat Tarin and his team at Islamabad on Tuesday.FED is not a levy like other taxes imposed on share transaction, … KSE brokers would device the mechanism of collecting FED and send it to government, to which the advisor has agreed… The News
Pakistan’s capital market has not witnessed any IPO (initial public offering) in the first six months of 2009 as no company offered shares to public during this period. "This is the worst-ever situation from which Pakistan capital market is passing through. It can be judged from the fact that no company has offered shares to public since January 2009," analysts said.This has happened for the first time in the last decade of Karachi bourse that no IPO hit the market in the first half of the calendar year. "Despite higher lending rates, new companies were not able to raise funds through initial offerings at the local exchanges mainly due to unwarranted closure of the market for three-and-a-half months, continuous selling by foreigner investors and weak economic fundamentals forcing issuers to delay their offerings,… Aaj News
The board of directors of Askari Bank Tuesday authorised the signing of a memorandum of understanding, in terms of which Mybank could merge and amalgamate into Askari Bank…Banks are now required to raise their minimum paid-up capital (free of losses) to Rs 6 billion by December 31, 2009, Rs 7 billion by December 31, 2010, Rs 8 billion by December 31, 2011, Rs 9 billion by December 31, 2012 and Rs 10 billion by December 31, 2013…Askari Bank said it would be applying to the SBP for obtaining approval to commence due diligence of Mybank…Daily Times
In the first session after the Budget for 2009-10, the KSE-100 index got bashed and closed down by a hundred points.
News : Habib Bank Ltd., Pakistan’s second-biggest by assets, withdrew from bidding for shares of RBS Pakistan. “Habib Bank conducted the due diligence,” it said in a statement to the stock exchange today. “After careful consideration, Habib Bank decided not to participate in the bidding.” It didn’t give a reason. MCB Bank Ltd., the biggest by market value, JS Bank Ltd., a Pakistani lender, and Orascom International Investment Holdings are competing for the business. RBS Pakistan formerly belonged to ABN Amro Holding N.V….Source : Bloomberg
Doubts over the ‘timing and nature’ of the external financing that Pakistan is banking on to cover its fiscal deficit need to be removed before any review of its lowly soverign credit rating can take place, an analyst for Moody’s Investor Services said on Monday…."We recognise the improvement in terms of sovereign ratings but we need more reassurance of the timing and nature of the external financing," said Aninda Mitra, Moody’s sovereign analyst for Pakistan… Aaj News
The Karachi Electric Supply Company (KESC) will issue 4.081 billion right shares at Rs 3.5 per share to generate Rs 14.286 billion to partly finance equity component of new generation projects and capital requirements….The right shares will be offered to ordinary share holders at the rate 31 percent of their existing shareholding in the company...Aaj News
News : The State Bank of Pakistan (SBP) is to rescue the Bank of Punjab (BoP) by providing Rs 10 billion as bridge financing, as the bank has been unable to comply with the regulatory Capital Adequacy Requirement (CAR) of 9 percent as on December 31, 2008….The BoP is presently facing a shortfall of about Rs 20 billion to comply with the regulatory terms and conditions. Sources said that the State Bank had extensive deliberations with Punjab government on this serious regulatory lapse, and the later agreed to inject Rs 10 billion to strengthen the capital requirements of the bank…Aaj News
The Karachi Stock market finally broke a 5 session downward spiral to close marginally up at 6,894. It made a high at 6,978, but could not sustain its gains. Foreign selling was at its heaviest for the week with over $8 million worth of shares sold today. It’s possible there could be some pullback next week.
Dividends : Bank of Punjab : EPS : -19.02
News : The Petroleum Ministry and the Oil and Gas Development Company Limited (OGDC) have developed a consensus on $ 3 per million British Thermal Unit (MMBTU) maximum wellhead gas price of Qadirpur gas field. The $ 3 per MMBTU wellhead gas price is calculated at $ 400 per ton high sulphur furnace oil (HSFO), a maximum limit for wellhead gas price discount of Qadirpur gas field.The Petroleum Ministry will move a summary to Economic Co-ordination Committee (ECC) of the Cabinet for formal approval. At present, wellhead gas price of other gas fields in Pakistan ranges between $ 2.4 and $ 4.6 per MMBTU. Following an increase in wellhead gas prices of other gas fields, OGDC had requested the Petroleum Ministry to enhance the wellhead gas price of Qadirpur gas field….Aaj News
The State Bank of Pakistan (SBP) has granted in principle approval to JS Bank Limited, in place of Jahangir Siddiqui and Company Limited, to bid for the acquisition of the entire shareholding of ABN Amro Bank NV in the Royal Bank of Scotland in Pakistan (RBS Pakistan)… In this regard, the directors of JS Bank held an emergency meeting to review the said acquisition opportunity, and concluded that this opportunity presents an excellent strategic fit with long-term growth objectives of JS Bank.To this end, the Board of Directors of the bank authorised the management to submit a binding bid to the Royal Bank of Scotland Group plc… Aaj News
Suttabhai is travelling and posting might be sporadic for the next few days.
News : Fitch Ratings-Singapore, has downgraded Pakistan-based United Bank (UBL) individual rating to ‘D/E’ from ‘D’, and affirmed its support rating at ‘5′. Concurrently, the agency has also affirmed the ratings of the following three Pakistani banks. HABIB BANK LIMITED (HBL):Individual rating affirmed at ‘D/E’, Support affirmed at ‘5′; MCB Bank Limited (MCB): Individual rating affirmed at ‘D’, Support affirmed at ‘5′; and National Bank of Pakistan (NBP): Individual rating affirmed at ‘D’, Support affirmed at ‘5′….Aaj News
Having made a high of 7,549, the KSE-100 index got fucked again and closed down at 7,271. The market has lost its upward steam for the moment and will continue to be shaky until all the trouble settles. The result season is practically over now and PTCL and AHSL wil announce their results 2moro.
Dividends : Jahangir Siddiqui & Co. Ltd (JSCL) reported a Rs 4.093 billion loss in the first quarter of 2009 against the profit of Rs 5.920 billion company earned in the same period of the previous year. The earning per share also turned negative to Rs 5.36 in the quarter under review over Rs 7.91 in the corresponding period of last year,…The huge losses incurred by the company have been attributed to provision for impairment against investment in subsidiaries, associates and joint ventures and that came to Rs 3.967 billion in January-March quarter of current calendar year… Daily Times
National Bank of Pakistan (NBP) has posted a net profit of Rs4.2 billion in the first quarter of the current calendar year 2009. This is eight per cent lower than Rs4.6 billion the bank earned in the corresponding quarter last year.This translated into earning per share (EPS) of Rs4.79 in the period under review against Rs5.16 EPS in the first quarter of 2008….The decline was mainly led by an 11 per cent drop in non interest income as the bank received a one-off income tax refund of Rs988 million from tax authorities last year… The News
News : The State Bank of Pakistan (SBP) has granted approval to Jahangir Siddiqui & Company Limited (JSCL) to conduct due diligence for the acquisition of Royal Bank of Scotland (RBS). After receiving the approval from the central bank on Wednesday, JSCL would now conduct an investigation or audit of the potential investment….With the permission for the due diligence the first step of acquisition has been fulfilled and now the interested parties would evaluate market value of RBS. In the final step they would bid for it, depending on the due diligence report… Daily Times
The KSE-100 index opened up and made a high of 7,674. It then slid downwards and ended the day at 7,344, eroding virtually all its gains from Friday. Volumes were relatively very low at 108.6 million shares traded. Its possible that after some more downside the index could recover slightly 2moro.
Dividends : Pakistan Petroleum Limited (PPL) on Monday announced a 15.24 per cent increase in year-on-year profit for the third quarter (Jan-Mar 2009) on the back of higher price of gas produced from its different wells. PPL, the country’s second largest petroleum production company, is also expected to post higher profit for the full year which ends in June because of the lagging effect of a gas pricing formula linked with international oil price, analysts say….After tax profit of PPL surged to Rs7.195 billion in the Jan-Mar quarter compared to Rs5.678bn in the same period of previous year. Sales jumped over 31pc to Rs15.7bn from last year’s Rs11.9bn…. The News
Lucky Cement registered 52 percent growth in its net profit during the first nine months of current financial year on the back of high sales and export. The company’s net profit increased to Rs 3.072 billion during the period under review against Rs 2.014 billion in the same period of previous year…Earnings per share (eps) rose to Rs 9.50 in July-March of 2008-09 from Rs 7.65 per share in the corresponding period of last year. Profit before tax also jumped to Rs 3.488 billion compared to Rs 1.629 billion in the previous year…. DG Khan Cement posted Rs 321.117 million net profit in the first nine months of the current financial year against Rs 194.069 million in the same period of the previous year, reflecting 65 percent growth. Earnings per share also increased to Rs 1.27 in the period under review over Rs 0.77 in the previous year…. Daily Times
Adamjee Insurance Company Limited registered 400 percent growth in its net profit to Rs 441.44 million in the quarter ended on March 31, 2009 against Rs 88.425 million in the same period of previous year. Earnings per share also grew to Rs 4.32 in the quarter under review over Rs 0.86 in the same quarter of last year… Daily Times
News : Pakistan banks were cut to “neutral” at Bank of America Corp. after helping the nation’s stock index post the world’s fourth-biggest gain this year. Bank of America’s Merrill Lynch unit, citing the outlook for earnings and recent stock gains, lowered its ratings on MCB Bank Ltd. and United Bank Ltd., to “neutral” from “buy.” Allied Bank Ltd. and National Bank of Pakistan were reduced to “underperform” from “neutral.” …. Daily Times
The KSE-100 index got bashed today with a big correction of 260 points. Heavy selling and profit taking took the index down to a low of 7,525 and then the market recovered to close at 7,574. Support is at 7,500 with the next downside towards 7,200.
Dividends : Pakistan State Oil (PSO), the largest oil marketing and state-owned company with 71.7 per cent market share, averted losses in the third quarter (Jan-March) of the current fiscal year, as it earned a profit after tax of Rs780 million. Earlier, the first two quarters had shown a huge cumulative loss of Rs10 billion. Owing to this, for the nine months, the company posted losses of Rs9.3 billion. On year-on-year basis, the profit for the third quarter at Rs780 million is about 75 per cent lower than Rs3 billion the company earned in the corresponding period last year… The News
News : The State Bank of Pakistan has given the green signal to the country’s two largest banks for commencing due diligence for the acquisition of Royal Bank of Scotland (RBS),..On April 15, after announcement by HBL and MCB, Jahangir Siddiqui and Co (JS) also announced that it was also interested in buying the operations of RBS in Pakistan…"Yes, we have allowed HBL and MCB bank for commencing due diligence for the buying operation of RBS," said Wasimuddin, chief spokesman of SBP…He also confirmed that JS application had also been received, which was being considered… Aaj News
The KSE-100 index corrected down to a low of 7,604 and then recovered to close at 7,807. The direction of the market hangs on how much money we will get in the FOP meeting in Tokyo on Friday and the monetary policy announcement on Monday. There are already various reports from analysts saying that there will be no interest rate cut or a nominal one at best.
Dividends : Shell Pakistan has posted a profit after tax of Rs374.14 million during the quarter of 2008-09. According to financial results reaching Karachi Stock Exchange (KSE) on Wednesday, the pre-tax profit of the company has fallen to Rs42.92 million during the period ending March, 2009. The earning per share has also dropped to Rs5.46 during the period under review against an earning per share of Rs14.05 in the same period last year. Shell said that the fall in profit was mainly due to inventory losses resulting from unfavourable movements in international oil prices. Shell said that it paid a financial cost of Rs185 million during the quarter on the sizeable receivables of Rs5 billion against the government as well as public sector organizations… Source : The News
News : The State Bank of Pakistan on Wednesday announced over 50 percent reduction in minimum capital requirement (MCR) to facilitate the banking sector. This decision has been taken in view of the general global slowdown in growth and capital accumulation by financial institutions and representations from shareholders, the SBP said….According to the circular, the banks will now be required to raise their minimum paid-up capital (free of losses) to Rs 6 billion by December 31, 2009; Rs 7 billion by December 31, 2010; Rs 8 billion by December 31, 2011; Rs 9 billion by December 31, 2012; and Rs 10 billion by December 31, 2013… Aaj News
There is no graph today due to a glitch in KSE’s third-rate website.
The Karachi Stock market rose to a high of 8,009 and then corrected down to close at 7,832. It’s possible the market could correct further before going up having gained 576 points in the last two sessions. Upward resistance is 8,100 with downside towards 7,500. Clocks will be going forward by one hour at midnight tonight.
News : Karachi Stock Exchange (KSE) has decided to end trading of odd-lot shares in the market.The decision was taken in the meeting of board of directors of KSE here on Tuesday. According to a director of KSE, the blocking of odd-lot shares would come into effect within one month. Odd-lot shares often incur losses to seller as minimum buying for any scrip ranges between 50-500 shares in the stock market….Daily Times
Pakistan will announce the monetary policy for the last quarter of the 2008/09 (July-June) fiscal year on April 20th, Syed Wasimuddin, chief spokesman for the State Bank of Pakistan, said on Tuesday. Analysts are expecting a cut in interest rates as inflation has eased from a record high of 25.3 percent in August last year to 19.07 percent in March. Pakistan’s key discount rate was kept unchanged at 15 percent when monetary policy was announced in January after it was raised by 500 basis points in 2008… Aaj News
Pakistani financial services company Jahangir Siddiqui and Co Ltd. said on Tuesday it is interested in buying the operations of Royal Bank of Scotland (RBS) in Pakistan. JSCL is the third Pakistani company to express an interest in buying RBS’s Pakistani operations after Habib Bank Ltd and MCB Bank did so on Monday. RBS Pakistan has a market cap of around $266 million. "JSCL has been invited to conduct due diligence of RBS Pakistan," JSCL said in a statement to the Karachi Stock Exchange. "JSCL will apply to the State Bank of Pakistan through the financial advisers of RBS, to obtain the requisite permission to commence due diligence of RBS Pakistan."… Aaj News
The KSE-100 index opened up with an erection of over 200 points and stayed steady all day , closing up by 254 points ( 3.3% ) . The market has gained by 7.7% since Friday morning and the 8,000 index level could well be crossed in the near future, leading to 8,400.
News : Habib Bank Ltd. (HBL) and MCB Bank are interested in buying the operations of Royal Bank of Scotland (RBS) in the South Asian nation,…Habib Bank, which is majority owned by the Aga Khan Fund for Economic Development, and MCB, which is 20 percent owned by Malaysia’s Maybank, said in statements to the Karachi Stock Exchange that they had expressed an interest to acquire the shareholding of RBS in Pakistan. The banks, two of the biggest in Pakistan, are seeking approval of the SBP to commence due-diligence. RBS said in February it intended to explore new ownership of its operations in Pakistan due to its capital constraints and the need for the bank to reduce the size of its balance sheet. "The market capitalisation of RBS Pakistan today is $266 million, so that is the minimum price it would get," said Asif Qureshi, head of research at Invisor Securities Ltd…Aaj News
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
An incredible week for the Karachi stock market with the market closing at 7,432 on Friday, an increase of 629 points ( 9.24%) since the following Friday. The market has reached its 7,500 target and there should be a healthy correction coming soon.
News : National Bank of Pakistan will hold its 60th annual general meeting on April 28 in Karachi where a resolution will be presented before shareholders to approve increase in the bank’s authorized capital from Rs 10 billion to Rs 25 billion… Daily Times
Iraq’s Oil Ministry has qualified nine foreign oil firms out of 38 interested parties for a second round of bidding for contracts in some of its prized oil and gas fields. The firms are Russian state oil firm Rosneft and Russian mid-sized oil firm Tatneft, Kazakh state-run KazMunaiGas, Vietnam’s Petrovietnam, Angola’s state-owned Sonangol, state-run Pakistan Petroleum Ltd (PPL), Japan Oil, Gas and Metals National Corp (JOGMEC), Cairn Energy PLC of Britain and state-run Oil India Ltd…. Aaj News
Friday saw the KSE-100 index dip down to 9,583 and then recover to close up at 9,909. Heavy support and buying from the EMOF took the market up along with the news that some of the bigger companies have expressed an interest in buying back their shares given the current incredibly low & attractive prices. Next week throws us into the impeachment saga which could see turbulence for the market especially if it turns out to be long and protracted.
News : Austrian oil and gas group OMV said on Friday it had acquired two exploration licences in southwest Pakistan. OMV will be part of a joint venture with state-run Pakistan Petroleum Ltd (PPL), which will operate the two blocks… Aaj News
Malaysia’s Maybank has bought another 5 percent of MCB Bank for about 703 million ringgit ($213 million), raising its stake in the South Asian nation’s biggest lender to 20 percent, it said on Friday… Aaj News
The KSE-100 index made a high of 11,173 , then dipped down to 10,979 and close up at 11,156. Total volume traded today was 111.9 million shares, still on the low side. Arif Habib Securities was the flavour of the day with 12.6 million shares traded. The market has closed above its first resistance of 11,100 and the next target is 11,400. The market is up by nearly 1000 points since Friday and after 4 days of green, there could be some weekend selling 2moro.
News : The authorities have decided at a meeting held on Thursday that Equity Market Opportunity Fund (EMOF) would be an Open-End Fund. The EMOF launched from Friday (today) would be injected in stock markets under NIT management when market is under pressure…The initial size of fund was declared at Rs20 billion, but owing to its attractiveness of being an open-end fund, the size might inflate to any level. The general public would also be able to invest in this fund and the National Investment Trust (NIT) would be announcing its daily NAV value and dividends,…NIT would form a separate board to manage the fund. The board would be meeting at least after every six months or in case of emergency too. Initially, EOBI has confirmed to pool Rs3 billion; State Life Rs2 billion and Rs2 billion by National Bank, besides other financial institutions and banks would share rest of funds, sources said. This fund would be invested in KSE 100-share Index instead of KSE 30-share Index as was informed earlier. The fund would not be invested in more than 50 companies… The News
Malaysia’s Maybank is set to buy another 5 percent of Pakistan’s MCB Bank as early as next month, in a deal estimated at $218 million,…Malayan Banking Bhd, Malaysia’s leading lender, bought a 15 percent stake in MCB Bank, Pakistan’s top lender, for $680 million in May. That deal included a clause whereby Maybank was obliged to buy up to another 5 percent of MCB Bank shares within one year of the first transaction. The price for this stake was then agreed at Rs 490 per share, plus holding cost, with the total price not exceeding Rs 510 per share. “The deal is very much on, the talks have started, and if all goes well, it should materialise sometime in August,” said a source close to the transaction. A spokesman at Maybank declined comment. A spokesman at MCB Bank said any stake purchase by Maybank would be in line with the previous agreement, but he did not give a time frame for the new purchase…. Daily Times
Adamjee Insurance is likely to announce profit after tax of Rs 2.7 billion (EPS Rs 26) for the first half of the current year compared to Rs 1.18 billion (EPS Rs 11.6) in the corresponding period of last year, a growth of 125 percent, says a research report…“Exceptional growth in 2Q2008 profitability would mainly be attributable to a one-time capital gain of Rs 2.7 billion on account of MCB sell-off deal,”…. Daily Times
The United Arab Emirates (UAE) has recently raised the cement price by 15 percent due to its rising demand, mainly benefiting Pakistani cement industry, sources said on Thursday. Pakistan is the major cement exporter to the UAE, as it fulfils around 70 percent of the total demand of the product in the Emirates.After the rising cement prices in the face of huge demand in UAE, analysts see Pakistan as a primary beneficiary to flood the Arab markets with its product. It is likely to receive huge cement export orders shortly, they said…Source : Aaj News
Another positive day at the Karachi Stock Exchange with the market making a high of 11,141 and closing up at 11,018. The market seems to have met resistance at 11,100 and needs to close above it for its next move to 11,400-700. Oil has dropped further down to $125 and hopefully will continue to fall more ,to get back to a realistic price.
News : Barclays Bank Plc., a prominent bank of the United Kingdom, has become a scheduled bank in Pakistan from July 23 by opening its four branches, said Shazi Ashraf, head of corporate affairs of the Bank.“The Bank has commenced its two-branches in Karachi, one in Lahore and one in Islamabad from Wednesday (July 23) …,” she said. Ms Shazi said, “the bank is neither interested to acquire any Pakistani bank till now nor it is negotiating for any merger.” Barclays Bank Plc entered into Pakistan with an initial investment of $100 million aiming to open ten branches throughout the country. It has commenced four branches in Pakistan while other six branches would be started by the end of this year… the State Bank of Pakistan (SBP) has declared “Barclays Bank Plc.” as a scheduled Bank with effect from July 23, 2008….Daily Times
The KSE-100 index made a high of 12,609 and closed at 12,452. As expected yesterday, there were quite a few lower caps and the market cooled off today with some profit taking. There could be some weekend selling 2moro as well. Oil shot up over $140 based on a weak dollar and irresponsible remarks from OPEC’s president Chakib Khelil, who said that prices could rise to $150-170 during the summer (see the article below). The market’s next upward resistance is 12,550 and a close above that would head towards 12,900. Given its current 1% downside, it could get there soon.
News : The government has asked the Oil Marketing Companies (OMCs) to submit proposals for setting up new mechanism for profit margin in the proposed oil pricing formula… While on the other hand, the OMCs have opposed the possible move by government to freeze their margin…The government believes that the profit margins of OMCs were fixed when the oil prices were low and the gains of these companies were also less, however the rising oil prices in the international market have caused increase in the margin of OMCs. Government wants to maintain of OMCs margin at 3.5 percent but intends to change the basis of its determination that will freeze the margin of OMCs. But OMCs are not in favour of it and therefore the meeting remained inclusive… Daily Times
The president of OPEC, Algerian Energy Minister Chakib Khelil, forecast on Thursday that oil prices could rise to $150-170 a barrel during the northern hemisphere summer.If there were real demand for extra oil, the Organization of Petroleum Exporting Countries would do what was needed to satisfy it, he said, affirming that there was enough oil in the world for about the next 50 years. “I predict probably prices of $150 to 170 this summer. It (the market) will probably fall a bit towards the end of the year,” … Daily Times
The Pakistan Credit Rating Agency (PACRA) has upgraded the long-term and short-term entity rating of NIB Bank Limited to A1+ (A One Plus)… Source : The News
The KSE-100 index got gang-banged today, making a low of 11,704 and closing 390 points down at 11,870. This was predominantly due to a rumour circulating, regarding doubling the price of CVT. The market is on a very weak footing with all kinds of uncertainty, political and financial, therefore the slighest cough or fart unleashes panic . It seems 500 points down in a day is par for the course at the moment. More irresponsible is the lack of any clarification on the CVT issue which seems unlikely to be implemented as it would have been mentioned at the time of CGT being exempted. Whether there will be a pullback 2moro or further erosion is anyone’s guess ! Buy large jars of Vaseline and apply copiously !!
News : Malayan Banking Berhad (Maybank) on Thursday remitted $666 million (Rs 44 billion) to Pakistan (on Monday value) as payment for 15 percent shares of MCB Bank Limited. Maybank had signed an agreement for the purchase of upto 20 percent ordinary shares of Nishat Group on May 3rd, 2006….Malaysia’s largest financial institution has taken a long-term view as the MCB fundamental strength continues to be unaffected. With time deposits of only 10 percent compared (to 25-30 percent in the industry) and 90 percent of current and saving deposit - MCB continues to outperform its peers with low cost deposits… Aaj News
A Spokesman for the Attock Refinery Limited on Thursday warned that in case of total withdrawal of deemed duties on High Speed Diesel by the government, the refineries would suffer a huge revenue loss of over Rs 12 billion, which would simply make the refineries unoperational. He added that any cut in deemed duties of 10 percent on HSD products by local refineries would seriously impair refineries continued operations leading to substantial cut in local production and in turn would result in importing high volumes of petroleum products, further burdening the foreign exchange reserves of the country… Daily Times
The KSE-100 index finally closed above 8k and made its highest close since Dec.17th 08. The Karachi Stock market got a good hoist from the IMF news and the volume of shares traded increased to 155.5 million. 
Talks with the IMF have been successful in terms of the release of the 3rd tranche & an additional loan of $3.2 billion. As the market had been sitting on the fence awaiting the news, it should propel the KSE-100 index above 8k next week. The final upward trigger will depend on how many bps will be cut in the Monetary Policy announcement on August 15th.
The KSE-100 index made an intra-day high of 7,896 and closed up at 7,834. The market should break 7,900 and hold to go through 8k with some correction along the way. Perhaps the ‘’badla'’ issue will be sorted out before the result season ends, giving the market a much needed boost to sustain its daily gains.
Friday saw the KSE-100 index dip down to 9,583 and then recover to close up at 9,909. Heavy support and buying from the EMOF took the market up along with the news that some of the bigger companies have expressed an interest in buying back their shares given the current incredibly low & attractive prices. Next week throws us into the impeachment saga which could see turbulence for the market especially if it turns out to be long and protracted.
The KSE-100 index made a high of 11,173 , then dipped down to 10,979 and close up at 11,156. Total volume traded today was 111.9 million shares, still on the low side. Arif Habib Securities was the flavour of the day with 12.6 million shares traded. The market has closed above its first resistance of 11,100 and the next target is 11,400. The market is up by nearly 1000 points since Friday and after 4 days of green, there could be some weekend selling 2moro.
Another positive day at the Karachi Stock Exchange with the market making a high of 11,141 and closing up at 11,018. The market seems to have met resistance at 11,100 and needs to close above it for its next move to 11,400-700. Oil has dropped further down to $125 and hopefully will continue to fall more ,to get back to a realistic price.
The KSE-100 index made a high of 12,609 and closed at 12,452. As expected yesterday, there were quite a few lower caps and the market cooled off today with some profit taking. There could be some weekend selling 2moro as well. Oil shot up over $140 based on a weak dollar and irresponsible remarks from OPEC’s president Chakib Khelil, who said that prices could rise to $150-170 during the summer (see the article below). The market’s next upward resistance is 12,550 and a close above that would head towards 12,900. Given its current 1% downside, it could get there soon. 
The KSE-100 index got gang-banged today, making a low of 11,704 and closing 390 points down at 11,870. This was predominantly due to a rumour circulating, regarding doubling the price of CVT. The market is on a very weak footing with all kinds of uncertainty, political and financial, therefore the slighest cough or fart unleashes panic . It seems 500 points down in a day is par for the course at the moment. More irresponsible is the lack of any clarification on the CVT issue which seems unlikely to be implemented as it would have been mentioned at the time of CGT being exempted. Whether there will be a pullback 2moro or further erosion is anyone’s guess ! Buy large jars of Vaseline and apply copiously !!
