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 : Engro Chemicals (Engro), Pakistan’s second largest urea manufacturer, said on Thursday in a letter to the Karachi Stock Exchange (KSE) that it planned to enter the rice processing and export business. It proposed setting up a rice processing plant in the province of Punjab which was expected to come online by the fourth quarter of 2010. "The plant is expected to cost 3.2 billion rupees with an equity injection required of 1.6 billion rupees," Engro said… Aaj News
Dividends : The Oil & Gas Development Company (OGDC) has announced a profit after tax of Rs12.06 billion for the first quarter ended September 30th. This is over 36 per cent lower than the Rs18.97 billion net earnings recorded in the same quarter in 2008. The board of directors approved first interim cash dividend at Re1 per share for fiscal year 2010. Total earnings for the quarter under review translated into earning per share of Rs2.81 against Rs4.41 in the corresponding quarter of FY09. The significant decline of 36 per cent in net earnings was apparently due to a notable 23 per cent fall in net revenues to Rs31.82 billion against Rs41.38 billion in the same quarter last year…The News
News : Two fertilizer plants, M/s Fatima Fertilizer Plant Rahim Yar Khan and M/s Engro Chemicals Plants at Dharki are near to completion and expected to be operational by November this year and October 2010 respectively. These plants will produce more than one million tonnes of fertilizer annually which will be sufficient to meet the farmers’ demand locally according to the Ministry of Industries and Production… Daily Times
Suttabhai has cancelled his trip to the mountains and regular posting will continue without any hiccups.
The KSE-100 index made an intra-day high of 8,938 and closed up at 8,769. The market was extremely volatile with wild swings in certain stocks, (e.g. Rs.10 in OGDC) A lot of foreign money has been pumped into the market in the last two sessions and volumes have risen above the 200 million mark in the last two days. While the upward momentum could well continue past the current target of 8,700, some correction could set in soon.
Dividends : Pakistan International Container Terminal (PICT) on Tuesday announced a 76 per cent increase in profit for financial year 2008-09, helped by a substantial depreciation of the rupee. Profit surged to Rs935.689 million in fiscal 2009 compared to Rs529.260m recorded in the previous year despite sluggish trade activity in the slowing economy…PICT’s Board of Directors has recommended a 20pc bonus share… The News
Oil & Gas Development Company (OGDC) has hit hydrocarbon reserves in its exploratory well Nashpa No 01, district Karak of NWFP… the well has produced 3,000 barrels of oil and 9.678 mmcf per day of gas on 32/64" choke size at wellhead flowing pressure of 2340 PSI. The well is a joint venture between OGDC, PPL (30 pc) and Government Holdings (pvt) Ltd (05 pc). The well was spudded on June 29, 2008 and drilled down to its target depth of 4384 meters… Aaj News
Urea producers on Tuesday raised the price of urea by Rs 30 per 50-kg bag across the country due to rising cost of production and short supply,.. almost all urea producers had announced an increase of around 5 percent in the urea prices to pass on the impact of hike in the utility tariff and petroleum products’ prices.Slow supply was creating tremendous shortage of the commodity in the local market, especially in the Punjab, compelling growers to pay more money for an important component of crop, they said.. due to massive shortage and delay in the import of the commodity by the Trading Corporation of Pakistan (TCP), the urea was being sold at Rs 800-850 per bag in the black market."If the government does not make necessary arrangements for better supply then the urea price may move up to Rs 900 per 50-kg bag in the domestic market," they added. On the directives of the federal government, the TCP is importing urea from Saudi Arabia and a consignment has already reached Gwadar, which is still not unloaded due to some quality issues…Aaj News
Friday’s close saw the week ending on a positive note, with the KSE-100 index closing up at 7,502 on rumours of the new leverage product being announced soon.
News : With the phase out of Continuous Funding System (CFS) from the stock market, the board of directors of Karachi Stock Exchange (KSE) is set to meet next week to consider the new leverage product as well as the commencement of future contracts system in the market.“Board of Directors will meet on July 14th and most probably would give their nod to a new financing product to replace the CFS,”…About the future contracts system, stock brokers fraternity hoped that it would commence from August… Daily Times
Azgard Nine Company has announced to disinvest its shareholding in Pak American Fertilizers Limited (PAFL). In a meeting on Friday board of directors of the company decided that the company would explore the possibility of disinvesting up to 24.99 percent of its shareholding in PAFL (presently wholly-owned subsidiary). The company will offload its holding by way of an offer for sale … Daily Times
The Karachi Stock market dipped down to a low of 7,187 ( its lowest point since April 9th ) and then recovered to close up at 7,430. Hopefully the market will stabilize and close above 7,500 , heading upwards again.
News : The board of directors of Engro Chemical Pakistan Limited, in its meeting held on Tuesday, agreed in principle to carry out a demerger of Engro, in terms of which its fertiliser business is proposed to be bifurcated from Engro and transferred/merged into a wholly owned subsidiary (to be incorporated)….Essentially, the fertiliser assets of Engro will be substituted by shares of its new wholly owned subsidiary. Engro will then function as a pure holding company and oversee the business of its new fertiliser subsidiary as well as the business of its other existing subsidiaries/affiliate…. Aaj News
On Friday the KSE-100 index dipped down to a low of 7,235 and then the index recovered to close up at 7,620, a gain of 3.8% . the next upward resistance is 7,900 and the market could well head that way with more results to be announced next week. AICL, PPL, ENGRO & ICI will anounce their results next week amongst several others.
Dividends : Habib Bank Limited (HBL) reported an unconsolidated profit after tax at Rs3.5 billion for the first quarter of current calendar year 2009. This is over 10 per cent higher than Rs3.9 billion profit the Bank declared in the same period last year…The net earnings of the Bank on account of mark-up, non-mark-up and earned interest surged to Rs20.2 billion from Rs15.8 billion in corresponding period in 2008 - witnessing a growth of about 28 per cent on year-on-year basis… The News
News : Fertilizer consumption increased by 104 percent in January-March 2009 with the sharp rise in both urea and DAP sales during the period. According to the latest fertilizer data released by the National Fertilizer Development Centre (NFDC), the overall fertilizer sales has recorded 1.9 million tonnes in Jan-Mar 2009 compared to 1.6 million tonnes last year. Due to low prices of DAP in the market and better crop support prices, offtake in March 2009 surged by a massive 244 percent to 75,000 tonnes from just 22,000 tonnes in March 2008. As a result, offtake during Jan-Mar 2009 rose to 189,000 tonne up 104 percent from 93,000 tonnes in 1Q2008. Urea sales continued to show a positive trend with March 2009 offtake recorded at 464,000 tonnes up 8 percent YoY…. Daily Times
More low volume trading saw the KSE-100 index post its 5th consecutive negative close today. Only 9 million shares were traded. The ruppee hit a new low today and nearly crossed Rs.70 to the dollar. Its seems likely that there will be another negative close 2moro being the end of the week and no positive news on the horizon for the moment.
News : The urea price on Thursday shot up by Rs 70 per 50 kg bag in the domestic market in the wake of recent gas tariffs rise by 31 percent… Sources said, "the leading urea companies including Fauji Fertiliser and Engro Pakistan have raised the urea commodity prices by Rs 35 to Rs 625 per 50 kg bag which earlier stood at Rs 590 per 50 kg bag…At present, local urea production stands at some four million tonnes annually against the demand of 4.5-5 million tonnes in the country. Fauji Fertiliser operates four plants capturing 60 percent of the market share with production of about three million tonnes annually. Engro is in the second position, producing some one million tonne urea annually. The remaining gap between supply and demand is filled up with imported urea. The government provides some Rs 1,000-1,200 per 50-kg bag subsidy on imported urea to ensure availability of the commodity at a reasonable price to growers. Urea is being imported at Rs 1,600-1,700 per 50-kg bag, while importers are selling it at Rs 625 per 50-kg bag… Aaj News
The dialogue between the government, Oil Marketing Companies (OMCs) and oil refineries regarding the new oil pricing formula remained inconclusive Thursday and government has called another meeting on July 14th for further consultation… OMCs representatives said that cost of doing business in the country was increasing and freezing of margin would further aggravate the situation…. They said that the delayed payment of price differential claims by government had caused distortion in their margins. Sources said that OMCs also proposed the government to review the oil pricing formula after every six months to adjust the margins and taxes on petroleum products in the current scenario of oil price hike in international market…Sources said that oil refineries are ready to withdraw the 10 percent deemed duty on high speed diesel but they have at the same time demanded an incentive of Rs 12 billion either by increase in profit margin or relaxation in taxes. Oil refineries warned that if the deemed duty is withdrawn and they were not offered any other alternative incentive, their business in Pakistan would be shut down…. Daily Times
The KSE-100 index opened up and made a high of 13,167 . Unable to sustain the gains it dipped and finally closed at 13,025. Aside from the fertilizer sector’s increased DAP subsidy, and no adjustment on refinery/OMC margins, the budget had really fuck all impact on the market.
News : The Budget 2008-09 can be read in depth at Aaj News
The fertiliser sector seems to be one of the biggest beneficiaries of the budget for the fiscal year 2008-09, as the government has raised the subsidy on the DAP by over 100 percent and the subsidies on gas supply would also continue to the fertiliser industry. In the budget, the federal government has enhanced total fertiliser subsidy up to Rs 32 billion and Dia Ammonia Phosphate (DAP) subsidy per bag would be increased by Rs 530 per bag. After the current upsurge, subsidy on DAP would reach Rs 1,000 per 50-kg bag, which presently stands at Rs 470 per bag… Aaj News
The Karachi Stock market opened up and made its all time intra-day high at 14,957 and also closed at its highest level of 14,829. MCB closed at 445 at its second upper limit in 2 days and at its all time high. Arif habib securities was the top scorer of the day with 39 million shares traded. The market is beginning to look overbought with quite a few stocks closing above their 70 RSI-14 figure. A correction is due as the market is up by some 950 points in the last 6 sessions,and it could well come this week. While the market sentiment is positive at the moment there could be instabilty in the coming weeks with the political situation. The thieves are banding together for the next government and the biggest moron in our political history, Nawaz Sharif, has been prattling on about getting rid of Mr.Mush at all costs. Are we really any better off than we were ?
News : New York oil prices struck a record 101.27 dollars a barrel Wednesday amid renewed global supply jitters… Aaj News
Importers of Di-Ammonium Phosphate (DAP), an essential crops nutrient, have raised the price by Rs 500 per 50 kg bag across the country on the back of soaring international prices…DAP prices has gone up by 36 percent in the world market during the last five weeks… Aaj News
Another day of lacklustre volumes and sluggishness at the Karachi Stock Exchange. Engro Chemical was the top scorer on the board with 16.6 million shares traded of a total 98.7 million. The next upward resistance remains at 14,100.
Dividends : Fauji Fertilzer (FFC) : 35% Cash . EPS : 10.86 Fauji Fertilizer Company (FFC) has recorded net earning of Rs5.361 billion for the full year ended Dec 31, 2007, which is 15.6 per cent higher than Rs4.363 billion last year…The net earning of the company translates into earning per share (EPS) of Rs10.86 for the period under review against Rs9.39 EPS in 2006. The increase in its earning was achieved primarily on the back of a better urea price in 2007…. Source : The News
The State Bank of Pakistan (SBP) on Thursday announced an increase in its discount rate to 10.5 percent from 10.0 percent, reinforcing its fight against rising inflation and widening external and fiscal deficits.The move was widely anticipated and welcomed by bankers and analysts, though stockbrokers expected a knee-jerk negative reaction in the share market when it opens on Friday….In another step to tighten monetary conditions, Akhtar said banks’ cash reserve requirement (CRR) will be increased to 8.0 percent from 7.0 percent for deposits and time liabilities below one year…. Aaj News
Engro Food Limited has announced that it will invest about Rs3.4 billion over two years in a bid to expand its current portfolio.Under the expansion plan, the company would set up a new dairy farm and develop an ice-cream venture in Pakistan, Engro Food CEO Sarfaraz Rehman unveiled this at a press conference… Source : The News
Finally the KSE-100 index managed to sustain its gains and closed up at 13,856 on Friday. NIB Bank was the flavour of the day with a relatively huge volume of 58 million shares traded. The next upside resistance is 13,900 -14,050 and downside support is at 13,700.
News : Pak-American Fertiliser, Pakistan’s largest urea producing factory in Daudkhel, has been closed down owing to the on-going gas crisis in the country. The factory produces 1,125 to 1,130 tonnes of urea on a daily basis.The halt in urea production will inflict a daily loss of over Rs 12.5 million to the factory. The factory will remain closed for 15 days…Aaj News
The first instalment of 6,000 tonnes of cement imported from Pakistan by State government through Indian central agency MMTC is likely to reach Chennai and Tuticorin in few weeks…Aaj News
Adamjee Insurance made an On Account Payment of Rs 50 million to Berger Paints Pakistan Ltd within 24 hours after a huge fire engulfed the plant. The payment was made even before the fire could be completely extinguished. Adamjee Insurance also took the initiative in setting losses relating to the incidents of December 27 and made On Account Payments to almost all its customers. This speaks volumes about Adamjee Insurance’s unmatched ability and willingness to pay claims… Aaj News
Oil and Gas Development Company Limited (OGDCL) has discovered gas and condensate in its exploratory Passkhi East Well located in district Hyderabad. The new discovery will supply an additional 10.7 million cubic feet of gas per day,.. Aaj News
The KSE-100 index corrected down to 14,090 after a high of 14,280 and recovered to close down at 14,163. Upward resistance is 14,300-500.
News : Importers on Monday raised the price of di-ammonium phosphate (DAP), an essential crop nutrient, by Rs 400 per 50-kilogramme bag on the back of soaring international prices, market sources said. They said that after the current upsurge, the price of the commodity had reached the historical level of Rs 1,680 per bag… Aaj News
A consortium including Bank Muscat and Japan’s Nomura Holdings has agreed to buy 85 percent of Saudi Pak Bank for about $200 million, a banker involved in the deal said on Monday. The bid group, led by Pakistani financier Shaukat Tarin, also includes International Finance Corp, an arm of the World Bank…"We will be selling them 68.01 percent of the bank that we hold at 29.30 rupees a share," Rashid Zahir, the company’s chief executive, told Reuters. That price is nearly an 8 percent premium to Saudi Pak’s last closing share price. The small lender has a market capitalisation of about $177 million.A source in the bid group said the consortium had reached agreements to buy another 17 percent from local investors."We will be buying 85 percent of the bank now, and issuing a tender offer for the remaining shares pretty soon," the source said, adding that deal was expected to close by mid-February…Aaj News
Upper Caps : Arif Habib Ltd / Sui North / NIB Bank / Sitara Peroxide
The KSE-100 index set a record today with the highest ever gain in a session, rising 643 points. While there have been falls of 500-600 points before, one has never seen a screen full of upper caps like today. Various factors like the confirmation of the new election date, the 2 parties acceptance of it, oil at $100 and the Scotland yard probe, all led to create confidence in the market. The next upward resistance is 14,100-300.
News : One of the world’s biggest deals of 8 billion pounds has gone through between Akzo Nobel of Holland and ICI world-wide. As per the deal, the former has acquired 100 percent shares of the latter world over. Sources said ICI per share price for the deal has been evaluated at 6 pounds 80 pence…The employees of all the industrial units of ICI in Pakistan will now be on the payroll of the new group. The deal provides that the new management will be free to divest any of the ICI industrial units globally…. Aaj News
International prices of Di-ammonium Phosphate (DAP) fertiliser have surged more than double during the last year, dealers said here Wednesday. At the start of last year DAP could have been purchased for approximately $300 per ton cfr Karachi port. Today, if a fresh purchase was to be made, this price would be more than $700/ton cfr Karachi port…. Daily Times
UPPER CAPS : Practically all 1st tier stocks barring FFC, and many 2nd tier stocks.
The KSE-100 index got a good bashing today. Having made an intra-day high of 13,713 it dipped down to 13,284 and closed down at 13,315. Buy some Vaseline !
News : Importers of dai ammonium phosphate (DAP), an essential crop nutrient, have raised the price by Rs 100 per 50-kilogram bag on the back of soaring international prices..The fertiliser importers also increasedd the DAP prices by eight percent across the country, dealers said. After this upsurge, DAP price in the country reached Rs 1,300 per 50-kilogram bag, which was previously supplied to the dealers by the importer at Rs 1,200 per 50-kilogram bag, they added. While, the DAP in the retail market is available at Rs 1,500-1,550 per 50-kilogram bag due to mounting demand… Aaj News
A consortium including Japan’s Nomura Holdings and Bank Muscat could sign a deal within two weeks to buy a majority stake in Pakistan’s Saudi Pak Bank for as much as $218 million, bankers with knowledge of the transaction said on Wednesday.The consortium, led by Pakistani financier Shaukat Tarin, also includes International Finance Corp (IFC), the World Bank’s private sector arm. The deal could be finalised at 27-28 rupees a share, the bankers said. "The buyers are looking to acquire anywhere between 75 and 95 percent of the bank,"… Aaj News
The KSE-100 index made a high of 14,138, dipped down to 13,992 and closed up at 14,099, one of only six closes above 14k so far. National Bank was the flavour of the day with 30.6 million shares traded out of a total of 243.8 million. Engro made another all time high close at 296.70. Despite being highly overbought the market is holding on and closing higher daily and heading to test its previous high There could be some selling in 2moro’s Friday show. Upside resistance is 14,200-14,290 and downside support from 13,970-13,825.
News : Engro Chemical Pakistan Limited has signed a rupee syndicate loan of Rs 18.3 billion and an Islamic US dollar facility worth 150 million dollars marking the financial closure of its landmark financial plan to raise approximately $1.0 billion to construct a brand new world class Ammonia, Urea fertiliser complex at Daharki, District Ghotki, Sindh…The participants of the Islamic US dollar Facility are Dubai Islamic Bank, Citi Islamic Investment Bank, Standard Chartered Bank, National Bank of Pakistan, Habib Bank Limited and SAMBA Financial Group…The new Ammonia, Urea fertiliser complex will have estimated capacity of approximately 1.3 million tons of urea per annum….Engro’s market share for Urea is expected to increase from 19% today to 35% in 2011 when the new plant will be operational… Aaj News
The Karachi Stock market undertook an expected correction making a low of 13,237 and towards the end recovered to close at 13,353. Worldcall Telecom was the flavour of the day with a turnover of 17.4 million shares traded. Oil trading at $83 surprisingly made no impact on the OMC’s or oil related stocks. The Supreme Court decison in favour of G.Mush will be taken well by the business and market community and could spark off a small rally next week. 13,700-800 is quite possible provided the whining opposition rabble don’t get to stick a spoke in the electoral wheel.
Dividend : Sui South Gas : 5% Cash. EPS : 0.43
News : Leading stock brokers, investors and analysts while welcoming the Supreme Court verdict on President Musharraf’s dual offices expected that the share market will witness a bullish rally to reach new record levels and more foreign investment will come in the country’s equity market."We are looking consistent economic policies which will boost the country’s economy, consistently growing at the rate of over 7 percent since 2001", leading analysts said… Aaj News
The earnings of Sui Southern Gas Company (SSGC) have declined by 68 percent to Rs 290.380 million in the year ended on June 30 as compared to Rs 891.717 million in the corresponding period last year. The company earning per share stood at Rs 0.43 in the period under review against Rs 1.33 last year… Aaj News
Importers have raised the prices of dai ammonium phosphate (DAP), essential crop nutrients, by Rs 50 per 50-kilogram bag ahead of rising international prices, dealers said.A leading DAP importer on Thursday issued new price list of the commodity, announcing four percent per bag raise in the price of the commodity across the country, effective from Friday, they added. As a result, the retail price of the DAP had also gone up by Rs 50, reaching Rs 1,400 per bag of 50 kilograms from Rs 1,350… Aaj News
The Oil and Gas Development Company Limited (OGDCL) is poised well for overseas joint ventures in many countries as its teams are currently negotiating modalities to enter into new horizons. China, Kuwait, central states, South African countries are on OGDC priority list for overseas joint ventures…OGDC is a part of Shell Pakistan led joint venture, hopefully starting drilling in Pakistan’s deep waters in next couple of weeks… Aaj News
Market Low : 13,237.53 High : 13,353.68 Market Close : 13,353.68 – 25.55 points up
The first half saw the KSE-100 index down to 12,600. In the second session, the index made a quick recovery and raced up to about 12,760 and closed down at 12,698. (The last time the market closed at these levels was May 26th 2007.) World markets have recovered since yesterdays bashing, due to the Federal Reserve cutting its primary credit rate, known as the discount rate, from 6.25 per cent to 5.75 per cent. (That is the rate at which banks can borrow from the Fed if they are unable to borrow from each other. ) The DJIA closed up by 1.82% and the FTSE made nearly a full recovery closing up by 3.5%. Whether this move is a temporary band-aid for the current liquidity crunch, remains to be seen next week. The Karachi Stock market could well open up on Monday and test its next resistance levels of 12,860 and 12,950. For the moment it is finding support at 12,600.
News : Market movers have raised the prices of dai ammonium phosphate (DAP) by Rs 400 to new peak of Rs 1,800 per 50-kilogram bag in the wake of rising demand and short supply in the market… Aaj News
After getting a good bashing yesterday , the KSE-100 index recovered to close up at 14,053. Arif Habib Securities was the flavour of the day with 26.5 million shares traded and wnet from lower cap to nearly close at its upper cap. FFBl made its highest close to date at 47.40. Upside resistance is at 14,120- 14,170.
News : The Karachi Stock Exchange,Pakistan’s largest, may sell a 10 percent stake to an overseas partner before its initial share sale to help spur trading on a market that has risen 14-fold in six years."I have received interest from a number of regional, even European exchanges, including the Dubai International Financial Exchange,'’ Razi-ur-Rahman Khan, chairman of the Islamabad-based Securities & Exchange Commission of Pakistan, said in an interview in Karachi on July 16….Sale arranger Deutsche Bank AG will complete its valuation by August and an initial public offering of shares could take place early next year, said Khan, 57, who was appointed chairman in January 2006. Memberships are valued at about 100 million rupees ($1.66 million), valuing the exchange at about $340 million… Source : Bloomberg
Fauji Fertilizer Bin Qasim Ltd (FFBL) will invest Rs 300 million in Fauji Cement Company Ltd (FCCL)… Daily Times
Upper Cap: AHL Lower Cap : JOVC
Market Low : 13,887.41 High : 14,055.08 market Close : 14,053.02 — 107.98 points
The KSE-100 index ripped through 14k making an all time intra-day high of 14,169 and closed up at a record high of 14,132. It seems that the correction down to 13,781 was what the market needed to rise further to head towards 14,500. Memories are short in this market and the S&P downward revision to stable from positive seems not to have hindered today’s upside. Despite the upcoming result season there could be another bang downwards as most stocks are not seen as undervalued anymore. It is interesting to note that most of the blue chips had higher prices at a lower index compared to their prices currently.
News : BP Plc. said on Thursday it has withdrawn interest in joining a consortium bidding for a 51 percent stake in state-run Pakistan State Oil (PSO), …Pakistan’s Supreme Court placed a stay order on PSO’s planned privatisation until a hearing scheduled for the end of August… Aaj News
Price of Dai’ Ammonium Phosphate (DAP), an essential crops nutrient, has shot up by Rs 200 per 50-kilogram bag across the country due to its soaring prices in the world market, traders said on Thursday… Source :Aaj News
Following the success of "Pakistan Capital Markets Day" in London on July 6, which was held in collaboration with the London Stock Exchange, the Central Depository Company of Pakistan (CDC) held a similar event in New York on Wednesday (July 10).The CDC organised this road show with the support of Citibank and Pakistani brokerage firms, Invest-Cap Securities and AKD Securities… Aaj News
The first-ever national textile policy, schedule to be announced in the next two weeks, will not offer any cash subsidy, rebate and relief to the textile sector, although the industry is desperately expecting a "relief-cum- incentive" package… Aaj News
Upper Caps : Arif Habib Securities / Arif Habib Ltd / SCBPL / Bhosricor / Pioneer Cement
Yesterday the KSE-100 index broke through 13,000 points making an intra-day all time high of 13,041. With almost daily record high closes at the moment , its not realy worth creaming about. Maybe at 13,500 ! The market could not hold this levels and with profit taking came off closing down at 12,933. The flavour of the day was DGKC which traded 56,7 million shares out of a total volume of 315 million traded on Friday. MCB closed at 357.5 in Spot at its highest price ever, as did Adamjee Insurance with a record high close at Rs.325.20. There was a flutter of activity in Bank Alfalah based on some unfounded rumour that Singtel had done the deal re: Warid. It was short lived. BAFL has dropped in price and volume since the fucking stupid report by J.P. Morgan a few days ago, claiming its fair value to be Rs.35 (actually Rs.15 as Rs.20 has been inputed for the Warid sale ) !!
The Karachi Stock market held its downward support at 12,930. More downside leads to 12,860 and 12,750. On the upside 13,050 is the next resistance leading to 13,200.
News : Four investment companies held pre-bid meeting with the Privatisation Commission here on Saturday and discussed matters relating to terms, condition, warranties, indemnities for the sale of minimum of 90 percent shares of Hazier Phosphate Fertilisers Limited (HPFL)…they comprised of Al Tuwairqi Contracting Establishment, Saudi Arabia, Pak Steel Re-Rolling Mills, Islamabad, Warble (Pvt) Limited / Farm Fertilisers (Pvt) Ltd Lahore and Dr Zaigham Dil Khan (individual investor) Abbotabad…HPFL produces 90,000 metric tons of Granular Single Super Phosphate per annum and 30,000 metric tons of Sulphuric Acid per annum… Source : Aaj News
The Pashaki-Kunnar gas field, near Badin, will start supplying gas to Sui Southern Gas Company (SSGC) by 2010… Business Recorder
CFS financing in Karachi Stock Exchange (KSE) this week went down by Rs90 million.KSE released data depicted CFS financing this week valued at Rs54.50 billion as against Rs54.59 million in the previous week. Interest rate on CFS financing this week shedding 27 basis points… Geo News
The government has allowed 100 percent foreign equity in the insurance business in Pakistan, according to a notice of the Securities and Exchange Commission of Pakistan (SECP) to the Karachi Stock Exchange (KSE) on Thursday. Foreign investors are required to bring in minimum paid-up capital of Rs 500 million in case of life/family takaful and Rs 300 million in case of non-life/general takaful… Daily Times
The government is likely to reduce central excise duty (CED) on cement in the budget for 2007-08 in order to boost construction activity,…They said the government might bring down CED on cement from Rs 750 per tonne to Rs 500 per tonne… Daily Times
Yesterday’s ‘’ Friday Show ‘’ took the KSE-100 index to a new high with intra-day 12,784 and a close of 12,732. The perception seems to have changed from a week ago now that all the judicial crap has died down and foreign buying has resumed. The market is witnessing a pre-budget rally and todays meeting with the KSE and SECP could boost the market further if the CFS enhancement issues get resolved. If so, the Karachi Stock market could well touch 13k levels soon. The next upward resistance is 12,800-12,850 and downward support is at 12,630 to 12,530.
News :A meeting between the management of the Karachi Stock Exchange (KSE) and the Securities and Exchange Commission of Pakistan (SECP) officials is scheduled to be held here on Saturday (today). The most important issues of the enhancement of CFS cap to another higher level from its existing level of Rs 55 billion and the implementation of CFS Mk-II are likely to be discussed at the meeting…. Aaj News
The federal government has refused to lift the ban on urea export until the fertiliser industry submits a written guarantee that prices would remain unchanged,…The representatives of fertiliser industry informed that a huge stock of urea was lying with them as monthly average production of urea is around 4,30,000 tons and with subsidy on DAP, the demand of urea has suffered… Business Recorder
The country’s largest financial conglomerate, Pakistan Industrial Credit and Investment Corporation (Picic) has been sold. Considered to be the biggest deal amounting to US $350 million being the sale proceeds of Picic was approved by NIB bank and Tamasic Group of Singapore…It is learnt that the deal was finalised between Tamasic Group and Picic shareholders at Rs 78.50 per share…With this acquisition Tamasic Group will hold about 65 to 66 percent shares. The second largest shareholder is State Life Insurance Corporation with about 20 percent shares… Aaj News
The National Assembly standing committee on privatisation has strongly opposed National Investment Trust (NIT) sell-off and asked the Privatisation Commission to have a second look on its policy towards this key institution…NIT is a roughly Rs 80 billion fund and its annual income after tax ranges between five to six billion… Aaj News
A choppy, dull day at the Karachi Stock Exchange with the KSE-100 index opening up and then after making a high of 12,482, remained negative thereafter. FFBL was at the top of the leaderboard with 39.9 million shares traded. While the market looks tight, there could well be some selling in 2moro’s ‘’Friday show " or it will hold on for the CFS limit increase meeting on Saturday.
News :Engro Chemical Pakistan Ltd. will issue domestic corporate bonds worth 4 billion rupees ($66 million) to help raise funds for its new fertiliser manufacturing facility, banking sources said on Thursday. Engro, Pakistan’s second largest urea fertiliser producer, has mandated JS Bank Ltd. and Citibank to jointly manage the bonds issue, known locally as Term Finance Certificates (TFCs), they said. "The TFCs, proposed to be listed on the Karachi Stock Exchange, will have an eight-year maturity and will offer a floating spread of 1.55 percent over six-month KIBOR (Karachi Interbank Offer Rate)… Aaj News
Pakistan may delay bidding for a controlling stake in the country’s top oil marketing company by several few weeks due to a legal wrangle over the disqualification of a Saudi-backed bidder…The News
The Securities and Exchange Commission of Pakistan (SECP) was considering to scale up the CFS financing limit in view of existing bullish trend in the stock market. Chairman SECP Razi-ur-Rahman talking to Geo News said, the step to increase existing CFS financing limit of Rs55 billion was under consideration and a decision to this respect will be taken soon. A meeting of Karachi Stock Exchange board and SECP officials is scheduled to be held on Saturday in Karachi to discuss increase in the existing CFS financing limit… Source : The News
The Karachi Stock market made a high of 12,288 and then whittled down to close up at 12,235. While the market looks raring to go up the CFS limit issues are there to keep the upside at bay.The market closed on its resistance level and its peak of 12,337 is the next upward resistance.
Dividends : MCB : 25% Cash. EPS: Rs.5.93 Bank of Punjab : EPS: Rs.2.03 Fauji Fertilizer : 25% Cash. EPS: Rs.2.62 Arif Habib Securities : 200% Bonus. EPS: Rs.25.07 Indus Motor EPS: Rs.24.53
Fauji Fertilizer Ltd., Pakistan’s largest urea-maker, reported a 4.7 percent increase in first-quarter profit because of higher income from an associated company. Net income increased to 1.29 billion rupees ($21 million), or 2.62 rupees a share, in the three months ended March 31 from 1.23 billion rupees, or 2.5 rupees a share … Sorce : Bloomberg
Bank of Punjab Ltd., Pakistan’s biggest regional financial-services company, said first-quarter profit rose 33 percent because of higher interest rates. Net income rose to 780.7 million rupees ($13 million), or 2.03 rupees a share, in the three months ended March 31, from 584.9 million rupees, or 1.54 rupees, a year earlier,..Revenue rose to 1.6 billion rupees, from 1.2 billion rupees a year ago..Income from fees and dividends increased to 640 million rupees from 381 million rupees a year ago…The bank’s deposits rose to 165.5 billion rupees as on March 31, from 137.7 billion rupees on Dec. 31, the company said in its statement. Loans rose to 106.6 billion rupees, from 101.3 billion rupees in the same period… Source : Bloomberg
MCB Bank Ltd., Pakistan’s second- biggest lender by market value, said first-quarter profit increased 24 percent because of higher interest rates. Net income rose to 3.7 billion rupees ($61 million), or 5.93 rupees a share, in the three months ended March 31, from 3 billion rupees, or 4.78 rupees, a year earlier,.. Revenue rose to 8.92 billion rupees, from 7.15 billion rupees a year ago. Source : Bloomberg
Crescent Commercial Bank Ltd. (CCBL),National Bank of Pakistan (NBP) and Pakistan Oilfields Ltd (POL) will have theirborad meetings 2moro and the results will be out on Monday.
The Karachi Stock market continued its upward run making a high of 11,964 and closed up at 11,905. There seemed to be some stagnation towards the end at 11,930 and the market went down to 11,876 and then recovered to close plus. Bank of Punjab was the volume leader today with 34.5 million shares traded. 2moro’s ‘’Friday show" could see some correction as the market is headed to being overbought.
News : Petroleum Policy 2007 - Source : Reuters. Pakistan is set to remove a government cap on natural gas prices that has deterred potential investment, allowing them to rise slowly into line with global oil prices, government and industry officials said on Thursday. The current pricing policy, set in 2002, caps the price of gas from more than 90 percent of the country’s fields at $36 a barrel crude oil equivalent, nearly half world prices. "For all gas pricing, a reference crude price equal to the C&F price of a basket of Arabian/Persian Gulf Crude Oils imported in Pakistan during the first six months period… will be used," the Ministry of Petroleum said in a draft of the policy published on its Web site http://www.mpnr.gov.pk Pricing will be linked to international oil rates, and a 0.5 percent to 2.8 percent increase in prices will apply if the average exceeds $45 per barrel, it added. The government is expected to approve the new policy draft by June, and would only apply to new government-backed gas purchase deals but not to existing long-term agreements. Pakistan is rich in gas, holding an estimated 34 trillion cubic feet…
SSGC plans to reduce gas prices - Aaj News. The Sui Southern Gas Company (SSGC), for the first time in its history, plans to reduce gas price by Rs 1.39 per mmbtu, effective from next fiscal year (2007-08) against the increase of Rs 1.65 per mmbtu in current financial year.
DAP price slashed by Rs.310 - Aaj News. Fertiliser importers have reduced the prices of Di Ammonium Phosphate (DAP) and Mono Ammonium Phosphate (MAP) prices by Rs 310 and Rs 311 per bag respectively after the issuance of Rs 400 per bag subsidy notification on phosphatic and potassic fertilisers by government, dealers said.They said that now DAP prices have come down to Rs 1,080 per bag against Rs 1,390 in Lahore, and in Karachi DAP is now available at Rs 1,012 per 50 kg bag from previous Rs 1322.
Despite a day of low volumes at the Karachi Stock Exchange , the market made a high of 11,367 and then got bashed down to 11,193 closing down at 11,233. Despite oil reaching further highs, its impact seems to be minimal on the oil stocks, and PSO closed Rs.8.95 down. While there might be some pullback 2moro, 11,150 looms closer and a close below will get the Vaseline on the table again.
News : Karachi Stock Exchange (KSE) members have sent an SOS message to the prime minister soliciting his direct intervention into the matter of the issuance of SECP show cause notices… Geo News
Habib Bank Limited and National Bank of Pakistan have arranged a multi-currency financial facility for the urea expansion project of Engro Chemical Pakistan Limited.According to banking sources here Tuesday, the facility included Rs 2.137 billion of local currency, 120 million Euros and 70 million dollars of foreign currency…. Daily Times
The Karachi Stock market made a high of 11,383, but was unable to sustain the gain and closed up at 11,328. Volumes were slightly higher than yesterday with 1118.2 million shares traded. Banks continued to get bashed and oil stocks rose. The market has been extremely range bound in the last few days as investors have been sitting on the fence, and it needs to break out either way. Upside continues with a close above 11,450 and 11,150 is the area to hold on the downside. SCRA inflows for March equal $93.6 million taking the current fiscal year total to $650.8 million
News : Pakistan’s economy is projected to post a growth rate of about 6.5 percent to 7.0 percent in 2007 and 2008, reflecting some strengthening in agriculture and manufacturing sectors, the Asian Development Bank (ADB) said on Tuesday…Aaj News
Market movers have further raised the price of Dia Ammonium Phosphate (DAP) by Rs 60 to Rs 1,450 per 50-kg bag in the wake of rising demand and short supply in the country, traders said on Monday. "DAP is currently in short supply, as importers are avoiding to import it due to rising prices in the international market, and government has not given subsidy on its import after December 2006," they said. With the current upsurge of Rs 60, the DAP price has gone up to Rs 1,450 per bag in a week…. Business Recorder
Late buying towards the end took the Karachi Stock market shooting up to close on its high at 11,146. The buying seemed genuine after several days of downside and not just shorters cutting their trades. DG Khan Cement was the volume leader of the day with 19.25 million shares traded. DGKC, Lucky, Pioneer, Fauji and Maple Leaf cement all closed at their upper limits on the news that India might ban cement exports (see below) The next upward resistance is 11,300.
SCRA outflow for March is $28.4 million reducing the total for the fiscal year down to $528.7 million
News : India may consider banning cement exports to reduce prices, trade minister Kamal Nath said."We will look at that if that helps bring down cement prices,'’ Nath told reporters in New Delhi today. The government will have to study this step because cement is regionallypriced.'’ Indian cement makers increased the prices on March 5th after finance minister Palaniappan Chidambaram announced an increase in the excise rate on cement. The duty was increased to 600 rupees ($13.5) from 400 rupees a ton for cement sold at 190 rupees or more for a 50-kilogram bag. For cement priced below 190 rupees a bag the tax was cut to 350 rupees a ton. Source : Bloomberg
The Sale of Pakistan State Oil has been postponed to the end of September.
The price of daiammoniumphosphate (DAP), an essential crop nutrient, has jumped up by Rs 25 per 50 kg bag due to its acute shortage in the wake of hoarding by market movers… Aaj News
After yesterday’s battering , the KSE-100 index undertook a pullback opening up with a gap and a high of 11,070. However the gains could not be sustained and the market closed marginally up at 10,923. Another day of relatively low volumes with Bank Alfalah being the volume leader with 13.8 million shares traded. While 10,900 has held as support for the last 2 sessions there could be more bashing in days to come. A close over 11,070 would lead to upside around 11,200.
News: Pakistan’s cement sales increased almost a third in the first eight months of the financial year, boosted by demand from homebuilders. Sales, including exports, climbed to 15.2 million metric tons in the period ended Feb. 28 from 11.5 million tons a year earlier…Exports increased to 1.77 million tons from 976,000 tons a year earlier. Pakistan’s demand for new houses is estimated at 500,000 units a year… Source : Bloomberg
The Karachi Stock Exchange (KSE) has issued a proposal for the Federal Budget 2007-2008, pointing out issues relating to amendment to income tax for demutualisation, withdrawal of CVT and tax rebate for companies to attract listings…It said that an analysis of the first six months of this fiscal year shows that due to increase in CVT and withholding tax rates the average daily share volume has gone down drastically from 299 million to 173 million shares of the same period last year….The statement said the biggest direct beneficiary of the stock market boom in the country has been the government itself as more than 20 percent of the equity market is still directly or indirectly owned by government of Pakistan..In order to attract more investments in the country, the government needs not only to provide consistency in the current economic policies, but allow more incentives and facilities to equity investments to convert interest into real investment and create job opportunities besides enhancing government’s revenues… Daily Times
The reduction in gas prices, especially in the feed gas by 10 percent, has started bearing results, as the fertiliser manufacturers have reduced urea prices by Rs 7 per 50 kg bag, it is learnt. The impact of gas price reduction on urea price has been calculated by the financial institutions at Rs 138. This translates to Rs 6.90 per bag cut… Business Recorder
The KSE-100 index continued to take a hammering making a low of 11,251 and then recovered to close at 11,378. Bank Alfalah was the volume leader of the day having announced its results this morning. The market has to cross 11,500 and hold above it for further upside. With the Client Level Netting issue on March 5th, the market should stay rangebound until its absorbed. 11,635 still remains the major hurdle to overcome for serious upside. As all the major blue chip stocks resulted are out barring BOP 2moro, activity will be stock specific in those that gave good results. While a pullback is possible, invest in more Vaseline !!
Dividends : Bank Alfalah Ltd (BAFL) : 30% Bonus. EPS : Rs.3.86 .RESULT FOR THE YEAR ENDED 31/12/2OO6 PROFIT BEFORE TAXATION RS. IN MILLION 2,565.945 / PROFIT AFTER TAXATION RS. IN MILLION 1,762.691
Bank of Punjab and Sui South gas will announce their results 2moro.
News : Fertilisers offtake across the country in January 2007 saw significant drop, by nearly 27 percent, while the prices rose by Rs 2 to Rs 8 per bag… Business Recorder
Pakistan’s earnings per share (EPS) growth for 2007 is expected to be 20.6 percent, the second highest in Asia behind Indonesia, which has expected EPS growth of 26.2 percent, according to a Merrill Lynch report earlier this month….Source : Aaj News
The Sui Southern Gas Company (SSGC) has declined payments of billions of rupees to three public sector exploration and production (E&P) companies - the Oil and Gas Development Company (OGDC), Pakistan Petroleum Limited (PPL), and Government Holding (Pvt) Limited (GHPL)…SSGC owes over Rs 9 billion to the public sector oil and gas sector entities, with over Rs 4 billion major share to go to OGDC. Next comes PPL with Rs 2 billion. Similarly, GHPL is also facing financial crunch due to non-payment of outstanding amount of Rs over Rs 2 billion from SSGC…. Business Recorder
The price of fertiliser has been increased throughout the country by Rs 10 to the level of Rs 545 per bag… Daily Times
Shareholders of Crescent Commercial Bank Ltd (CCBL) have approved the issuance of 600 million ordinary shares at Rs 10 per share to Samba Financial Group (SFG) of Saudi Arabia….On completion of the deal, the bank’s issued and paid up capital will increase to Rs 8.8 billion, one of the highest in Pakistan’s banking sector.Samba, which is a premier financial group of Saudi Arabia with a market capitalisation of $ 22.5 billion and shareholder’s equity of $ 3.9 billion will have 68% stake in CCBL’s equity…. Aaj News
The KSE-100 index made an intra-day high of 8,938 and closed up at 8,769. The market was extremely volatile with wild swings in certain stocks, (e.g. Rs.10 in OGDC) A lot of foreign money has been pumped into the market in the last two sessions and volumes have risen above the 200 million mark in the last two days. While the upward momentum could well continue past the current target of 8,700, some correction could set in soon.
More low volume trading saw the KSE-100 index post its 5th consecutive negative close today. Only 9 million shares were traded. The ruppee hit a new low today and nearly crossed Rs.70 to the dollar. Its seems likely that there will be another negative close 2moro being the end of the week and no positive news on the horizon for the moment.
The KSE-100 index opened up and made a high of 13,167 . Unable to sustain the gains it dipped and finally closed at 13,025. Aside from the fertilizer sector’s increased DAP subsidy, and no adjustment on refinery/OMC margins, the budget had really fuck all impact on the market. 
The Karachi Stock market opened up and made its all time intra-day high at 14,957 and also closed at its highest level of 14,829. MCB closed at 445 at its second upper limit in 2 days and at its all time high. Arif habib securities was the top scorer of the day with 39 million shares traded. The market is beginning to look overbought with quite a few stocks closing above their 70 RSI-14 figure. A correction is due as the market is up by some 950 points in the last 6 sessions,and it could well come this week.
Another day of lacklustre volumes and sluggishness at the Karachi Stock Exchange. Engro Chemical was the top scorer on the board with 16.6 million shares traded of a total 98.7 million. The next upward resistance remains at 14,100.
Finally the KSE-100 index managed to sustain its gains and closed up at 13,856 on Friday. NIB Bank was the flavour of the day with a relatively huge volume of 58 million shares traded. The next upside resistance is 13,900 -14,050 and downside support is at 13,700.
The KSE-100 index corrected down to 14,090 after a high of 14,280 and recovered to close down at 14,163. Upward resistance is 14,300-500.
The KSE-100 index set a record today with the highest ever gain in a session, rising 643 points. While there have been falls of 500-600 points before, one has never seen a screen full of upper caps like today. Various factors like the confirmation of the new election date, the 2 parties acceptance of it, oil at $100 and the Scotland yard probe, all led to create confidence in the market. The next upward resistance is 14,100-300.
The KSE-100 index got a good bashing today. Having made an intra-day high of 13,713 it dipped down to 13,284 and closed down at 13,315. Buy some Vaseline !
The KSE-100 index made a high of 14,138, dipped down to 13,992 and closed up at 14,099, one of only six closes above 14k so far. National Bank was the flavour of the day with 30.6 million shares traded out of a total of 243.8 million. Engro made another all time high close at 296.70. Despite being highly overbought the market is holding on and closing higher daily and heading to test its previous high There could be some selling in 2moro’s Friday show. Upside resistance is 14,200-14,290 and downside support from 13,970-13,825.
The Karachi Stock market undertook an expected correction making a low of 13,237 and towards the end recovered to close at 13,353. Worldcall Telecom was the flavour of the day with a turnover of 17.4 million shares traded. Oil trading at $83 surprisingly made no impact on the OMC’s or oil related stocks.
The first half saw the KSE-100 index down to 12,600. In the second session, the index made a quick recovery and raced up to about 12,760 and closed down at 12,698. (The last time the market closed at these levels was May 26th 2007.) World markets have recovered since yesterdays bashing, due to the Federal Reserve cutting its primary credit rate, known as the discount rate, from 6.25 per cent to 5.75 per cent. (That is the rate at which banks can borrow from the Fed if they are unable to borrow from each other. ) The DJIA closed up by 1.82% and the FTSE made nearly a full recovery closing up by 3.5%. Whether this move is a temporary band-aid for the current liquidity crunch, remains to be seen next week. The Karachi Stock market could well open up on Monday and test its next resistance levels of 12,860 and 12,950. For the moment it is finding support at 12,600.
After getting a good bashing yesterday , the KSE-100 index recovered to close up at 14,053. Arif Habib Securities was the flavour of the day with 26.5 million shares traded and wnet from lower cap to nearly close at its upper cap. FFBl made its highest close to date at 47.40. Upside resistance is at 14,120- 14,170.
Yesterday the KSE-100 index broke through 13,000 points making an intra-day all time high of 13,041. With almost daily record high closes at the moment , its not realy worth creaming about. Maybe at 13,500 !
Yesterday’s ‘’ Friday Show ‘’ took the KSE-100 index to a new high with intra-day 12,784 and a close of 12,732. The perception seems to have changed from a week ago now that all the judicial crap has died down and foreign buying has resumed. The market is witnessing a pre-budget rally and todays meeting with the KSE and SECP could boost the market further if the CFS enhancement issues get resolved. If so, the Karachi Stock market could well touch 13k levels soon. The next upward resistance is 12,800-12,850 and downward support is at 12,630 to 12,530.
A choppy, dull day at the Karachi Stock Exchange with the KSE-100 index opening up and then after making a high of 12,482, remained negative thereafter. FFBL was at the top of the leaderboard with 39.9 million shares traded. While the market looks tight, there could well be some selling in 2moro’s ‘’Friday show " or it will hold on for the CFS limit increase meeting on Saturday.
The Karachi Stock market made a high of 12,288 and then whittled down to close up at 12,235. While the market looks raring to go up the CFS limit issues are there to keep the upside at bay.The market closed on its resistance level and its peak of 12,337 is the next upward resistance.
The Karachi Stock market continued its upward run making a high of 11,964 and closed up at 11,905. There seemed to be some stagnation towards the end at 11,930 and the market went down to 11,876 and then recovered to close plus. Bank of Punjab was the volume leader today with 34.5 million shares traded. 2moro’s ‘’Friday show" could see some correction as the market is headed to being overbought.
Despite a day of low volumes at the Karachi Stock Exchange , the market made a high of 11,367 and then got bashed down to 11,193 closing down at 11,233. Despite oil reaching further highs, its impact seems to be minimal on the oil stocks, and PSO closed Rs.8.95 down. While there might be some pullback 2moro, 11,150 looms closer and a close below will get the Vaseline on the table again.
The Karachi Stock market made a high of 11,383, but was unable to sustain the gain and closed up at 11,328. Volumes were slightly higher than yesterday with 1118.2 million shares traded. Banks continued to get bashed and oil stocks rose. The market has been extremely range bound in the last few days as investors have been sitting on the fence, and it needs to break out either way. Upside continues with a close above 11,450 and 11,150 is the area to hold on the downside.
Late buying towards the end took the Karachi Stock market shooting up to close on its high at 11,146. The buying seemed genuine after several days of downside and not just shorters cutting their trades. DG Khan Cement was the volume leader of the day with 19.25 million shares traded. DGKC, Lucky, Pioneer, Fauji and Maple Leaf cement all closed at their upper limits on the news that India might ban cement exports (see below)
After yesterday’s battering , the KSE-100 index undertook a pullback opening up with a gap and a high of 11,070. However the gains could not be sustained and the market closed marginally up at 10,923. Another day of relatively low volumes with Bank Alfalah being the volume leader with 13.8 million shares traded. While 10,900 has held as support for the last 2 sessions there could be more bashing in days to come. A close over 11,070 would lead to upside around 11,200.
The KSE-100 index continued to take a hammering making a low of 11,251 and then recovered to close at 11,378. Bank Alfalah was the volume leader of the day having announced its results this morning. The market has to cross 11,500 and hold above it for further upside. With the Client Level Netting issue on March 5th, the market should stay rangebound until its absorbed. 11,635 still remains the major hurdle to overcome for serious upside. As all the major blue chip stocks resulted are out barring BOP 2moro, activity will be stock specific in those that gave good results. While a pullback is possible, invest in more Vaseline !!
