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 600 posts and counting ...

11,156

July 24, 2008

11,156The 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

Upper Caps : BOP / AICL / NBP / UBL / MCB / DGKC / NML / ATRL

Market Low : 10,979.07 High : 11,173.77

Market Close : 11,156.68 – 138.18 points up

10,374

July 21, 2008

10,374After another dip down to 10,057, the KSE-100 index finally closed up with a reasonable gain of 140 points at 10,374. The Government has finally woken up to realize that the market has gone down nearly 35% in the last 3 months. This has resulted in a visit from the SBP governor at the KSE today and the Finance Minister will be visiting 2moro. A little too late one could say, but better late than never. A close above 10,500 would be supportive for the market.

Dividends : Engro Polymer : EPS : 0.83

News : State Bank of Pakistan (SBP) Governor Dr Shamshad Akhtar has said that despite multiple shocks, the country’s economy has managed to record economic growth of 5.8 percent in FY08, which is above the average growth trend of 5 percent observed between FY1991 and FY2008. During her first visit to Karachi Stock Exchange (KSE) here on Monday, she clarified that the central bank’s Prudential Regulatory Framework is largely supportive of exposures to the stock market, and that within the existing regulations, banks have the aggregate capacity of an incremental amount of Rs 40 billion to invest in the stock market, if they wish to do so. The SBP has also extended the deadline for banks’ total stock market exposure not to exceed 50 percent of their equity to June 30, 2009.
The SBP Governor was invited by the KSE Management to address a meeting of the KSE Board of Directors, stockbrokers and heads of commercial and investment banks… Aaj News

Upper Caps : AHSL / BAFL / DGKC / OGDC/ POL/ PSO / PPL /UBL / NBP amongst others

Lower Caps : MCB / BOP /

Market Low : 10,057.72  High : 10,374.30

Market Close : 10,374.30 – 139.52 points up

 

11,695

July 13, 2008

11,695Friday saw the week ending with the KSE-100 index closing down yet again, at 11,695. After Friday’s meeting of the SECP & the stock exchanges, it has been decided that the locks will revert to their normal 5% up or down as of July 14th. Short selling will be allowed in the August futures contract (see the article below) Given the pattern of trading in the last 2 weeks, expect a lot of lower caps 2moro. Stock up on Vaseline and Pampers !

News : Saudi Arabia has agreed, in principle, to defer payments for crude oil sales to Pakistan, expected to be worth about $5.9 billion during Pakistan’s 2008-09 financial year, The Financial Times reported on Saturday….Aaj News

The Securities and Exchange Commission of Pakistan (SECP) has reverted the upper and lower security-wise circuit breaker to 5 percent or Re 1, announcing strict monitoring of market activities, especially with reference to blank sales in excess of allowed limit and other market manipulations…. Aaj News

Market Low : 11,687.11 High : 11,773.12

Market Close : 11,695.82 – 77.30 points down

The Equity Market Opportunity Fund (EMOF)

July 11, 2008

The Securities and Exchange Commission of Pakistan (SECP) has issued tentative regulations for Equity Market Opportunity Fund (EMOF) worth Rs50 billion which will be injected into the fast falling capital market to stabilise it in bad days…Next meeting on the fund formation is scheduled to be held on July 16th. The tentative regulations were made public following SECP and KSE meeting held here on Thursday with financial institutions, which are the only eligible investors to pool their funds in EMOF.

Next meeting on the fund formation is scheduled to be held on July 16. The tentative regulations were made public following SECP and KSE meeting held here on Thursday with financial institutions, which are the only eligible investors to pool their funds in EMOF.National Investment Trust Limited (NITL) will be given the responsibility to run this fund, while financial institutions ie banks and Development Financial Institutions (DFIs), state-owned institutions and semi-government companies would be its only eligible members.

If an agreement is inked between the SECP and the likely members of this fund, then this fund would be invested in the KSE 30-index stocks that are eligible for CFS and CFS MK-II. Fund allocation will be according to the weight of each eligible scrip as a percentage of total CFS value as of July 08, 2008. Listed securities of brokerage houses and their holding companies will not be eligible securities for investment.

The EMOF shall be utilised as 30 per cent of funds will be made available on Day one; 30 per cent on day two; 30 per cent on day three and 10 per cent of funds will be made available on Day four. Any unutilized funds shall continue to be made available till the fifth trading day.After phase one, if funds are still available, the EMOF will review its investment strategy and may reenter the market.On the other hand, EMOF shall divest its holdings when the share prices of any particular scrip exceed 20 per cent of their weighted average of last six months… The News
 

 

12,430

June 25, 2008

12,430The Karachi Stock market continued its rise making a high of 12,499 and closed up at 12,430. The market has jumped up 1268 points in the last two sessions and there could be some lower caps creeping in, in a day or two. Volumes have increased with 192.7 million shares traded today.

News :  The government is arranging two tranches of Rs35 billion each for the payment of price differential claims (PDC) to oil marketing companies (OMCs) and refineries,…The ministry of finance has conveyed to the ministry of petroleum that it will very soon release two tranches of Rs35 billion each to the oil marketing companies and refineries under the head of price differential claims,…The PDC is a subsidy on POL products not passed on to consumers in fortnightly price revisions, but borne by the government to offset the effects of soaring petroleum prices. The PDC claims stood at Rs72 billion before the announcement of the federal budget earlier this month…The News

Most of the listed cement companies have registered huge losses from operations during the first nine months of the current fiscal year, industry sources say. They say that 85 percent of the listed cement companies have incurred losses amounting to Rs 5 billion during first nine months of the current fiscal. These losses occurred mainly due to rising cost of doing business and an imbalance in supply-demand phenomenon, resulting in depressed market prices,…Fauji, Lucky and Attock are the only three cement companies showing profit from operations worth Rs 2.4 billion… Daily Times

Pakistan Telecommunication Company Limited and the Karachi Stock Exchange signed a memorandum of understanding here on Wednesday, under which  PTCL would set up a high-speed network at the bourse. According to the agreement,  PTCL will deploy all necessary equipment to establish a ‘point of presence’ within the KSE building for laying a high-speed dedicated network called ‘KSE Connect’, especially developed for the stock exchange….KSE Connect would allow KSE members the facility to conduct real-time on-line trading from anywhere in Pakistan… Source : The News

Dubai’s Giladari Cement plans to invest around 3 billion rupees to establish a cement plant in the country with the capacity of producing 3300 metric tones per day…Work will commence on the plant next month and will be completed by November 2009… Source : Aaj News

Upper Caps : AHL / MCB 

Market Low : 12,122.67 High : 12,499.16

Market Close : 12,430.29 — 307.62 points up.

Capital Gains Tax exemption till 2010

June 3, 2008

Suttabhai will be back to blogging full time from Monday 9th June.

While May 2008 has proved to be the most disastrous month for the KSE-100 index in recent times, with the market getting gang-banged from 15,122 to 12,130, the news that CGT has been deferred for 2 years along with no change in CVT should give the market a much needed boost 2moro.

The government has agreed to extend exemption of Capital Gain Tax (CGT) on listed shares to further two years to June 30, 2010 from June 30, 2008. This was decided at a meeting of a Karachi Stock Exchange delegation and Finance Minister Naveed Qamar at Islamabad on Tuesday… The government side also agreed that there would be no change in the Capital Value Tax (CVT) as it would continue to remain at the present level… Aaj News

15,434 - some pullback and the Blame Game

April 27, 2008

15,434On Friday the KSE-100 index dipped further down to a low of 15,225 and then recovered to 15,400. In the 2nd half the market opened and dived down a 100 points in a few seconds (see the graph). This was due to the announcement that the "March 2005 Crisis "  issue was to be probed yet again. While claiming not to indulge in the "Blame Game" this move is at the suggestion of the Finance Minister Dar. Will this result in the "small investors" who he claims lost $12 billion overnight, getting their losses back ? No, all it will do is fuck up an already shaky market. Instead of looking forwards, we have to indure this " Mickey Mouse " behaviour from a Govt. that took ages to decide their new PM, still can’t decide on whether the judges should be restored or not, and faced with a totally fucked economy and sliding ruppee, now indulge in the "Blame Game" and try to dig up the past !

Advice to any small investors reading this post : please stay out of this market, if you can’t afford to lose as well as gain. Use the banks or gold as a safer investment, because this market will eat you raw if you don’t have the holding power in rough times and you will lose all your hard-earned money ! (and Mr.Dar won’t give it back to you ! )

The market has closed above its 30 DMA  and upward resistance is at 15,500.

Dividends : DGKC : EPS : 1.92 / Nishat Mills : EPS : 4.72 / Pak Premier Fund : 1.54 / MCB : 30% Cash : EPS : 6.55

MCB Bank Limited continued to perform well as the bank’s profit after tax increased by 10.33 percent to Rs 4.112 billion translating into an earning per share of Rs 6.55 in the quarter ended March 31, 2008 as compared to Rs 3.727 billion earned in the corresponding period in 2007… The board declared an interim cash dividend at Rs 3.00 per share ie 30 percent for the period.The bank showed a healthy growth of 10.13 percent in profit before tax, which came to Rs 5.758 billion in this quarter as compared to Rs 5.228 billion for the same period last year… the bank’s total income reached Rs 10.104 billion in the three months period in 2008 as compared to Rs 8.921 billion in the same period in 2007 as the mark-up/return/interest earnings increased to Rs 8.188 billion in this quarter against Rs 7.615 billion in the same quarter a year ago,… Aaj News

News : The Punjab government on Saturday removed President, Bank of Punjab (BOP) Hamesh Khan from his office, besides dissolving the Board of Directors of the bank. According to a spokesman of the provincial government, the government reviewed the financial affairs of the bank in consultation with the State Bank of Pakistan (SBP). "The decision has been taken after deliberating the situation in detail," he added. He further said that the government, which hold majority shares of the bank, was committed to strengthen the bank’s administration…. Aaj News

A National Assembly panel will launch a fresh probe into a stock market crash three years ago in which big and influential investors allegedly deprived smaller ones close to $12 billion overnight…The move came after Finance Minister Ishaq Dar told the house that he believed the previous government headed by former premier Shaukat Aziz hushed the matter up… Aaj News

Upper Caps : PAKRI / Azgard Nine / Nishat Mills / MCB / Attock Refinery / JS Bank

Market Low : 15,225.20 High : 15,445.03 

Market Close : 15,434.74 – 129.84 points up   

15,654

April 21, 2008

15,654The Karachi Stock market was sluggish today with very low volumes of 131 million shares traded. There was also a technical fault which led to the market being suspended for 50 minutes. (see the flat line in graph ).  The market made a new intra-day high of 15,739 and closed down at 15,654. It seemed as though the market was sitting on the fence, or could it be the begining of a correction ? Oil crossed $117.75 today.

Dividends : Lucky Cement : EPS : 7.65

News : The Securities and Exchange Commission of Pakistan (SECP) has agreed with a budget proposal of Karachi Stock Exchange (KSE) to abolish 10 percent income tax on dividends received by companies on their investments in other companies… Aaj News

Upper Cap : JS Bank Ltd

Market Low : 15,639.83 High : 15,739.25

Market Close : 15,654.79 – 21.55 points down 

15,430

April 13, 2008

15,430Friday’s close saw the Karachi stock market back on track with an intra-day high of 15,502 , closing up at 15,430. FFBL was the flavour of the day, recovering slightly from its recent bashing with 29.1 million shares traded. POl has made its highest close of the year at 392.90. Upside resitance is at 15,500 and downside support at 15,350.

Dividends : Pakistan Refinery : EPS : 40.38

News : The Privatisation Commission (PC) has invited Expressions of Interest (EoI) from reputed Pakistani and international parties/consortia interested in acquiring 93.88 per cent strategic shareholding in SME Bank Limited, along with the transfer of management control.The early submission of EoI will enable interested parties to avail the maximum time for the submission of Statements of Qualifications (SoQs). The last date to receive SoQs is May 17. … The News

The government has decided to impose Capital Gain Tax (CGT) on capital market transactions in order to increase its tax revenue to meet the growing expenses,…The government has focused on the earnings of the capital market, as it will be the main taxpayer of CGT. This may generate over Rs100 billion in revenue for the government.However, the rate of CGT on the capital market is under discussion sources said, adding that there were several proposals for the imposition of CGT on short-term and long-term investments in the capital market. “The imposition of 0.5 per cent to 1 per cent CGT is mostly discussed in both, the ministry of finance and Federal Board of Revenue (FBR)” …Sources in the FBR said that there were many reasons for the imposition of CGT other than revenue generation. “The government wants to end speculation from the capital market, so the imposition of CGT will be used as a tool to end the speculation,” they remarked.
The sources further said that the government wants to increase long term investments, and for this, it had proposed that an extension in the exemption should be subject to a holding period of securities for three months. In the case of holding of investment in stocks for less than three months, the gain may be taxed…
The News

Market Low : 15,304.92 High : 15,502.40

Market Close : 15,430.89 – 125.97 points up.  

15,404

April 9, 2008

15,404The Karachi Stock market opened up and made a new intra-day high of 15,598. Towards the end of the session it headed downwards and closed down at 15,404. POL was the flavour of the day with 26.4 million shares traded. After many days of smooth sailing , violence has erupted in Karachi again with the fucking lawyers having armed battles in the streets with 8 dead and 40 vehicles torched. This could lead to a further correction in the market 2moro. Keep an eye on that Vaseline jar.

Dividends : JSCL : 16.35 % Rights at a premium of Rs.465/- 

News : The Securities and Exchange Commission of Pakistan (SECP) has opposed a proposal of Karachi Stock Exchange (KSE) to reduce capital value tax (CVT) and withholding tax levied on stock market transactions… Aaj News

Lower Caps :  Arif Habib Securities / FFBL / Pace

Market Low :  15,365.13 High : 15,598.61

Market Close : 15,404.17 – 69.90 points down  

15,474

April 8, 2008

15,474The KSE-100 index opened down making a low of 15,371 and then recovered to close at 15,474, the highest close so far. DGKC was the flavour of the day with 51.1 million shares traded . Engro set another record close at 357.90. The bells have started tolling for the exemption of CGT (Capital Gains Tax ) to be removed in the new fiscal year and the sooner the new Govt.’s stance is clarified, the better for the market and foreign investment.
It looks like some correction is due soon. Upward resistance is at 15,500-591 and downside support at 15,300.

News : The Securities and Exchange Commission of Pakistan (SECP) has agreed to a budget proposal of Karachi Stock Exchange (KSE) seeking extension in capital gains tax (CGT) exemption on securities trading business for five years.However, the Commission has proposed that extension in exemption should be subject to a holding period of securities for three months…Aaj News

Market Low : 15,371.63 High : 15,497.06

Market Close : 15,474.07 – 4.33 points up 
 

 

15,275 - further highs

March 27, 2008

15,275 -  new highsSlowly but surely the Karachi Stock market is setting new highs.Today’s close at 15,275 and intra-day high of 15,333 have broken all records (so far ). The market is nearly 4000 points up from 27/3/2007. Arif Habib Securities was the top scorer in terms of volume with 22.6 million shares traded. 2moro’s "Friday show" could well see some selling / correction. Upward resistance is at 15,333 and downside support is at 15,120-050.

News : In its budget proposal for the fiscal year 2008-09, the Karachi Stock Exchange (KSE) has recommended to the Minister of Finance to extend the exemption in Capital Gain Tax (CGT) in shares market up to June 30, 2013… The News

The Pakistan Peoples Party is considering to nationalize Karachi Electric Supply Corporation (KESC) to control the power crisis in Karachi…Source : Aaj News

Upper Cap : Adamjee Insurance

Market Low : 15,198.86 High : 15,333.97

Market Close : 15,275.47 — 76.60 points up. 

15,085

March 9, 2008

15,085On Friday, the Karachi Stock market opened up making a new intra-day high of 15,192, dipped down to 15,021, and closed down at 15,085. FFBL was the flavour of the day with 42.8 million shares traded. Fauji Fertilzer closed at its upper limit, making its highest close in 2 years at 142.80. Oil is hovering above $105. The next upward resistance is 15,200.

News :  The National Clearing Company of Pakistan Limited (NCCPL) has imposed condition for the deposit of 50 percent cash margin, as per stock, to avail Continuous Funding System Mark-II (CFS Mk-II) in the eligible scrips. This was stated by officials of NCCPL in a presentation on ‘CFS Mk-II’ at Karachi Stock Exchange on Friday. They said that this 50 percent margin deposit would only be applied on the CFS mark-up rate and not on the total funded money to the finances. "CFS financiers would pool their funds for at least 90 days and if one of them withdraws it before the set timeframe then he would be charged a penalty of KIBOR rate plus four percent on the total fund which he intends to withdraw," Luqman, CEO of NCCPL said… Aaj News

Upper Cap : Fauji Fertilizer 

Market Low : 15,021.46 High : 15,192.63

Market Close : 15,15,085.18 – 58.19 points down.  

15,145 - another record high

March 6, 2008

15,145 - a new highThe KSE-100 index continued its upward march making an new intra-day high of 15,179 and closing up at a record high of 15,145. OGDC was the major flavour of the day closing at its upper limit with 66.3 million shares traded. PSO and Engro Chemical closed at new record highs at 511.10 and 339.15 respectively. Oil nearly touched $106 today. The market looks like it’s  heading for 15,500 with corrections along the way.

News : Oil prices surged to fresh record highs on Thursday, peaking close to 106 dollars as traders continued fretting over supply concerns a day after Opec opted to keep its output quotas unchanged.Market participants said a surprise tumble in US crude stockpiles this week and a small explosion at a military recruiting station in New York earlier Thursday had also boosted prices.New York’s main oil contract, light sweet crude for delivery in April, ended up 95 cents at a record closing high of 105.47 dollars a barrel after jumping to an all-time high of 105.97 dollars in earlier trading… Aaj News

A Memorandum of Understanding (MoU) was signed on Thursday between the Karachi Stock Exchange (KSE) and the Dubai Financial Market (DFM) to develop and strengthen capital markets activities in the region…The objective of signing this agreement is to strengthen and increase the co-operation between both institutions in all areas relating to exchange of expertise and information. It will also work on increasing awareness among both countries investors on the legal framework and investment opportunities available in both bourses. It will also encourage listed companies in both stock markets to cross list their securities… Aaj News

Upper Cap : Packages / OGDC 

Market Low : 14,957.90 High : 15,145.36

Market Close : 15,145.36 – 187.54 points up  

14,816 - more correction

March 3, 2008

14,816The KSE-100 index made a high of 14,970 and then undertook a much needed correction down to 14,740. It recovered to close down at 14,816. Voulmes were considerably lower at 144 million shares traded. Bank Alfalah was the top volume stock traded today.

News : Dubai-based private equity company Abraaj Capital said on Monday it bought into Pakistani energy firm Bosicor to tap growing demand for petroleum products in the world’s sixth most-populous nation.Abraaj acquired 40 percent in each of Bosicor Oil Pakistan Ltd and Bosicor Chemical Pakistan Ltd to finance construction of a chemical plant and refining unit, …The transaction included a minority stake in Bosicor Pakistan Ltd, which operates Pakistan’s fifth-largest oil refinery, Abraaj said, without being more specific… Aaj News

The National Clearing Company of Pakistan Limited (NCCPL) is going to announce the day-to-day volume of Foreign Portfolio Investments (FPIs) at the local bourses from March 05, 2008. The SCRA balances do not disclose to-the-point investment and divestment in the share markets made by non-residents…These announcements would be made after closing of markets in the evening at NCCPL websites so that the investors would be having actual figures of FPIs and take their own decisions… The News

After the implementation of futures contracts at the Karachi Stock Exchange now sector wise indices will be introduced in the local bourse.Managing Director KSE, Adnan Afridi  said sector wise indices will be introduced in the next three to four months for those investors who want to trade in particular sectors… The News

Upper Cap : Azgard Nine / JSCL
Lower Cap : MCB Bank

Market Low : 14,740.12 High : 14,970.51

Market Close : 14,816.50 — 117.80 points down

14,980

February 24, 2008

14,980On Friday the KSE-100 index opened up, dipped down to 14,888 and then rose to close at 14,980, another all time high. DGKC was the flavour of the day with 32.1 million shares traded. MCB has made another all time high closing at 472. The market is getting more overbought by the day and while it corrected down to 14,888 and closed higher, there could well be a proper correction down to 14,700 or lower.

Dividends : Pakistan Oilfields Limited (POL) has posted 18 percent growth in its net profit to Rs 3.719 billion in six months (July-December) of 2007 compared to Rs 3.149 billion in the corresponding period of last year…earnings per share (eps) also rose to Rs 18.87 during the period under review over Rs15.98 in the last year….Earnings per share also dipped to Rs 4.29 in the said year compared to Rs 5.32 in the previous year whereas profit before tax declined to Rs 2.697 billion compared to Rs 3.870 billion in the last year… Daily Times

News : The Karachi Stock Exchange (KSE) is waiting for the final SECP approval of the new products ‘Stock Index Futures’ KSE, which are likely to be launched in March 2008,said Adnan Afridi, Managing Director, KSE….In addition to KSE-30 Stock Index Futures, the KSE also plans to introduce Sector Indices and Options in 2008. In Pakistan, the managing director said, “the KSE 30 Index will act as the Index Futures contracts, which will be traded on KSE. The KSE-30 Index is a liquidity-screened and free-float adjusted market capitalization index of 30 stocks listed on the KSE.”… Daily Times

The Securities and Exchange Commission of Pakistan (SECP) has announced the implementation of CFS MK-II Funding System to be launched by the National Clearing Company of Pakistan Limited (NCCPL) from April 7, 2008. The SECP has also approved the criteria for eligible scrips for CFS Mk-II Deliverable Futures Market (DFM).The criteria is as follows… Aaj News

Upper Caps : Arif Habib Ltd / Nishat Mills / Pace 

Market Low : 14,888.06  High : 15,024.68 

Market Close : 14,980 – 8.69 points up.  

14,282

February 14, 2008

14,282The KSE-100 index shot up again and closed on its high of 14,282. Banks were the flavour of the day with National Bank closing at its upper limit. Oil rose above $95 today. With a long weekend coming up (the market is closed on Monday 18th for the farcical elections) there could be some selling 2moro.

Dividends : Habib Bank Ltd (HBL), the country’s third largest bank, reported a 14.2 percent fall to 10.84 billion rupees for the full year ended Dec. 31, down from 12.7 billion rupees the previous year.Pakistan’s fifth largest bank, United Bank Ltd (UBL), reported a 11.3 percent fall in its 2007 full-year profit to 8.4 billion rupees, down from 9.47 billion rupees in 2006.
"The decline in both banks was due to the additional provisioning done by the banks after the SBP tightened its provisioning regulations," said Atif Malik, an analyst at JS Global Capital Ltd…."Without the additional provisioning, the banks would have continued to post good growth in earnings."…
Aaj News

ICI Pakistan Limited has announced record-breaking financial results for the year ended on December 31, 2007. Operating profits surged by 20 percent closing at Rs 2.97 billion for 2007…net sales income soared from Rs 19.6 billion to Rs 23 billion, posting an increase of 18 percent. Profit before tax was at Rs 2.77 billion and profit after tax at Rs 1.78 billion, rising by 31 percent and 23 percent respectively over 2006. The company’s earnings per share surged to Rs 12.86 in 2007 compared to Rs 10.49 in 2006, showing an increase of 23 percent… Daily Times

News :  A meeting of CFS Mk-II Implementation Committee was held here on Thursday at Securities and Exchange Commission of Pakistan (SECP) Karachi Office to resolve pending issues in introduction of CFS Mk-II Market. The meeting, chaired by Chairman SECP, Razi-ur-Rahman Khan decided that the CFS Mk-II Market should be launched on April 7, 2008. It was also decided that, on the launching date, all financing in the existing CFS Market should be transferred to the new CFS Mk-II Market, which shall be managed at National Clearing Company of Pakistan Limited (NCCPL)… Daily Times

Upper Cap : National Bank of Pakistan 

Market Low : 14,115.89 High : 14,282.62

Market Close : 14,282.62 — 166.73 points up.

13,938

February 10, 2008

13,938Friday saw further lethargy in terms of trading activity, with 69 million shares traded. The KSE-100 index made a high of 14,018 and closed down at 13,938. The next week could be quite volatile with the build up to the farcical elections alluding to the myth of democracy. The result will make no fucking difference to the state of the nation as the poor will continue to get fucked on a daily basis and the rich just get richer. A lot depends on who gets blown up and who doesn’t (hopefully nobody will ). However, there should be some stock specific activity as a lot of results are to be announced this week. Stock up on the Vaseline !

News : Securities & Exchange Commission of Pakistan (SECP) has announced setting up a capital markets institute with the objective to offer different examinations leading to licensing certifications in various specialised areas and domains of financial markets. The present environment in Pakistan’s capital markets does not foster or mandate minimum levels of required knowledge for capital market participants or intermediaries. The various types of financial intermediaries operating in capital and money markets in Pakistan need to be adequately trained and certified in order to improve the overall profile and functioning of the capital markets in the country….Daily Times

Lucky Cement Limited, the largest cement manufacturer in the country, is expected to show a 22 percent year-on-year increase in its net earnings to Rs 968 million for the first half of the current financial year. Analysts at Arif Habib Securities said in a report released on Thursday that the company’s earning per share is likely to be Rs 3.67 for the above period mentioned. A 31 percent increment in sales volume to 2.63 million metric tonnes is expected to support the bottom line growth.. Daily Times

The United Bank Limited (UBL) is expected to post profit after tax of Rs 9.197 billion in CY07 compared to Rs 9.468 billion in CY06…UBL has a short dividend payment history, which was increased from 45% in CY05 to 55% in CY06. We expect the bank to maintain a dividend payout of 55% for CY07, said the analyst…UBL is expected to announce financial results for CY07 on February 14, 2008… Daily Times

Upper Cap : Eye Televison Net
Lower Cap : Netsol Tech

Market Low : 13,937.77 High : 14,018.51

Market Close : 13,938.33 – 54.42 points down  

13,787

January 23, 2008

13,787The Karachi Stock market opened up with a gap making a high of 13,902 and then slowly fizzled out to end closing up at 13,787. Arif Habib Ltd hit another all time high closing at its upper limit of 378.55 . With 4 consecutive upper caps and its result on the 29th, it seems fairly obvious that a large bonus is on the cards. NIB Bank & Arif Habib Securities Ltd were the top scorers on the leader board trading 40 & 37 million shares respectively. With Asian markets recovering today and the Dow closing 2.5% up , it’s possible that the market will go up and stay up 2moro.

Board Meetings : FFBL & PPL will announce their results 2moro. 

News : Leading international stock exchanges/strategic investors like Dubai, Korean, London and Norway bourses have shown keenness in acquiring stakes in Pakistan’s de-mutualised stock exchanges. The Securities and Exchange Commission of Pakistan (SECP) Chairman, Razi-ur-Rehman Khan, told reporters on Wednesday that President Pervez Musharraf would sign the Stock Exchanges (Corporatisation, Demutualisation and Integration) Ordinance, 2008 within the next 10-15 days…He said that the SECP has sent a draft of two new products to the exchanges. These are ‘Index Futures’ and ‘Options’…He said that the Continuous Funding System Mk II (CFS) would be implemented in the next 3-4 weeks….the process of Corporatisation and Demutualisation would be completed within the period of 119 days following promulgation of the Ordinance… Aaj News

Upper Caps : Arif Habib Ltd (4th consec. day ) / JOVC / JSCL / Netsol Tech

Market Low : 13,754.53 High : 13,902.94

Market Close : 13,787.07 – 27.56 points up 

13,874 - a little bounce

January 20, 2008

13,874 Friday’s market saw the KSE-100 index dip down to 13,577 and then bounce back up to recover in the 2nd session  closing up at 13,874. PTCL was the flavour of the day with 31 million shares traded. The next upward resistance is 14,050.

News : The government is considering increasing petroleum prices from February 1, ARY TV reported on Saturday.The channel quoted Petroleum Ministry sources as saying that petrol prices would be increased by Rs 2.5 a litre while diesel prices would be increased by Rs 2 a litre…Daily Times

Pakistan Petroleum Limited (PPL) earnings are expected to increase by 14 percent to Rs 9.6 billion in the first half of FY08 as compared to Rs 8.4 billion in the corresponding period last year.PPL is scheduled to announce its results on January 24, 2008 and the earning per share (EPS) of the company is expected to surge to Rs 12.75 as compared to an EPS of Rs 11.2 recorded during the corresponding period of last year… Aaj News

The ministry of finance has cleared a proposal of the ministry of petroleum for arranging Rs 40 billion syndicated loan from a banks consortium led by National Bank of Pakistan for payments to OMCs against outstanding differential on POL prices. Sources said the MoF is negotiating the loan with NBP, MCB, Allied Bank and Bank Alfalah…In all, 12 OMCs are operating in Pakistan. State-owned company PSO’s market shares is roughly 60 percent. Shell comes next with 23 percent. The rest 17 percent goes to the remaining 10 OMCs. These include two world giants - Total and Chevron. Their share is around 13 percent in the market… Aaj News

Following high level consultations with the Securities and Exchange Commission of Pakistan (SECP), FTSE Group (“FTSE”), the global index provider has deferred its decision to remove Pakistan from the FTSE Global Equity Index Series (“GEIS”) from June 2008. The announcement to the above effect was made by FTSE from its London office on January 17, 2008… Daily Times

Upper Caps : Arif Habib Ltd / Js Bank Ltd / Nib Bank / Sitara Peroxide

Lower Cap : JSCL

Market Low : 13,577.36 High : 13,877.74 

Market Close : 13,874.54 – 200.50 points up.

14,049

January 14, 2008

14,049After a dip down to 13,852 , the KSE-100 index revovered and rose to an intra-day high of 14,084, closing up at 14,049. Arif Habib Ltd  closed at its all time high at 310.80 today, as well as Jahangir Siddiqui & Co. at Rs.1260. The market is still below its 30 DMA, having closed above its 50 DMA today. Upward resistance is from 14,200-300 and downside sees 13,800-700. This evening’s bomb in Karachi will possibly take the market down again.

News : The South Asian Federation of Exchanges (Safe) has signed a joint marketing agreement with Dow Jones Indices Inc, New York, for launching the first ever index, covering prominent companies listed on the major exchanges like Karachi Stock Exchange (KSE) and Bombay Stock Exchange (BSE)…as a part of the agreement, Dow Jones Indices would construct and publicise an index to be known as "Safe-Dow Jones Index" after collecting both live trading data and historical price data from the member exchanges of the South Asian Federation of Exchanges… Aaj News

Upper Caps : Arif Habib Ltd / Arif Habib Securities Ltd / JS Value Fund / JS Bank Ltd / Netsol Tech

Market Low : 13,852.29 High: 14,084.96

Market Close : 14,049.69 – 134.65 points up 

South Asian Federation Exchanges Index (SAFE Index)

January 6, 2008

The first initiative of South Asian countries to develop an integrated financial sector is to materialise in shape of South Asian Federation Exchanges Index (SAFE Index).The SAFE Index is going to be launched within few months as basic framework is already completed and Dow Jones and SAFE Index are about to sign an agreement on January 9, 2008 at Bombay Stock Exchange…in the SAFE Index the composition will be of 100 companies from the SAARC countries depending on that the company should meet the SAFE Index standards…initially 93 Indian companies were considered and seven Pakistani companies but later it was reconsidered that 50 Indian, 39 Pakistani companies and the rest of companies would be taken from the remaining SAARC countries, but this is not final yet and might be further reviewed.

The 13 primary members of SAFE Index are Bombay Stock Exchange Limited, Chittagong Stock Exchange Limited, Colombo Stock Exchange Ltd, Dhaka Stock Exchange Limited, Islamabad Stock Exchange (G) Ltd, Karachi Stock Exchange (G) Ltd, Lahore Stock Exchange (G) Ltd, Maldives Stock Exchange, National Commodity Exchange Limited, National Stock Exchange of India Limited, The Nepal Stock Exchange, Royal Securities Exchange of Bhutan Limited and The Stock Exchange of Mauritius Limited…. Source : The News

 

14,633

December 11, 2007

14,633The KSE-100 index dipped down to a low of 14,435 and then recovered to close up at 14,633. Pakistan Cement was the flavour of the day with 19.5 million shares traded due to Lafarge S.A.’s acquistion of Orascom Construction Industries which has a 69% stake in PCCL. MCB made another new all time high and closed at its upper limit at 433. The pressure is building up as the market is headed to test its previous high of 14,787. The RSI-14 is over 70 now and there could be another correction before testing the peak or closing above it.

News : Pakistan Telecommunication Company Limited(PTCL) has announced its new rates for International Direct Dialing that enables the landline, PTCL calling cards and V Customers to call a number of destinations worldwide just for Rs1 per 30 seconds… Aaj News

The caretaker Cabinet is likely to approve the much-awaited ‘Stock Exchanges Corporatisation, Demutualisation and Integration Ordinance 2007′ on Wednesday for promulgating it in the shape of an Ordinance before December 31, 2007, fearing that any further delay would deprive the country of huge investment… Business Recorder

Upper Caps : Pakistan Cement / MCB 

Market Low : 14,435.38 High : 14,634.20

Market Close : 14,633 – 61.36 points up 

13,279 - State of Emergency hammers the KSE-100 index

November 5, 2007

13,279 - A Royal Fisting !Due to the inevitable announcement of a state of emergency on Saturday, the KSE-100 index got buggered senseless today. Opening down below 13,580 , it then recovered back to 13,780 and then got a royal fisting down to 13,257, closing down at 13,279. The Karachi Stock market’s fall of 635 points is possibly the largest in its history in terms of points. It has lost 1636 points since its intra-day high of 14,908 on October 22nd. The market has closed below its 30 and 50 DMA’s and there could be a pullback soon, perhaps after some more downside or 2moro. While the index has had its gaps filled in the 13,300-14k range, no doubt several punters have had their gaps filled as well !! Apply copious amounts of Vaseline and enjoy the ride !

News : Under the new Petroleum Policy, the price of gas has been linked to the price of a basket of crude oil being imported by the country and more incentives have been provided to investors (compared to Policy 2001) for all zones…A Gas Price Gradient concept has been introduced to keep the prices low through a competitive bidding process and at the same time, provide incentives for investment… Aaj News

Security and Exchange Commission of Pakistan (SECP) will market Pakistani stock exchanges in the international market to attract more foreign investment and improve ranking of local capital market in the world.This was stated by the chairman SECP Razi-ur-Rehman while speaking at the launching of financial institutions’ margining system of National Clearing Company of Pakistan Ltd (NCCPL) here on Monday. "We have chalked out a programme to market our stock exchanges and related institutions in the international market in December this year or early January next year", he added. He pointed out that SECP will take representatives of all three stock exchanges, NCCPL and CDC to large international financial institutions, fund managers in leading markets, NCI, London Stock Exchange, etc…Rehman said that marketing of local stock market would raise the comfort level of foreign fund managers and international financial institutions and stock exchanges about Pakistan… Aaj News  (Razi couldn’t have chosen a better day to announce this, i’m sure the comfort level of foreign fund managers is high right now after a fall of 635 points and a state of emergency !!! )

Upper Caps : Not today !
Lower Caps : OGDC / MCB / BOP/ LUCKY / DGKC/ AHSL / AHL /NML /JOVC /HUBCO / PTC / POL /PSO / and several more.

Market Low : 13,257.86 High : 13,915.04

Market Close : 13,279.60 – 635.55 points down !!   

14,099 - an overbought market holds

October 5, 2007

14,099.30The KSE-100 index headed to test its all time high of 14,290 and fell short with a high of 14,272. It then dipped down to 14,027 and closed at the same level as yesterday at 14,099. Askari Bank was the volume leader of the day with 32.9 million shares traded. Whether that was the current correction for an overbought market remains to be seen next week. With the current sentiment the Karachi stock market should test its high and go further.

News : The Securities and Exchange Commission of Pakistan (SECP) has filed a case in the District and Sessions Court, Karachi, against a member of Karachi Stock Exchange and three of its clients, accusing them of illegal trading in the shares of Kot Addu Power Company Limited (Kapco).The case was filed on the basis of a SECP inquiry report, in which it said that unusual trading activity was observed in the scrip of the Kapco during January 24 to May 25, 2007… Business Recorder

The Securities and Exchange Commission of Pakistan (SECP) has imposed a fine of rupees five million on Zafar Moti Capital Securities Limited (ZMCS) and Zafar Siddiq Moti, Chief Executive of ZMCS for operating an illegal outlet…Brief facts of the case are that the Commission received various complaints from investors (hereinafter referred to as "Complainants"), alleging that Tariq Saeed of T.M. Finance Services was dealing in securities for the clients/investors in an illegal and unlawful manner, through ZMCS… Business Recorder

The International Power (IP) of UK has given 90 days to Government of Pakistan (GoP) for settlement of Kapco shares dematerialization or face legal proceedings, sources close to Privatisation Minister Wasi Zafar told Business Recorder here on Thursday."Should we not hear back from you by the end of 90 days, then under the terms of shareholders’ agreement, approval to transfer is deemed to have been given by the GoP," the sources quoted ASJ Ramsay, director and company secretary, National Power (Kot Addu) Limited (NPKAL) as saying in a letter to Privatisation Minister Wasi Zafar… Business Recorder

Upper Cap : Bank Alfalah

SPOT : Hubco + JOVC

Market Low : 14,027.92 High : 14,272.91 
Market Close 14,099.30 –
0.64 points down

12,228 - minor pullback

August 29, 2007

12,228 - minor pullbackThere was some improvement in the KSE-100 index with a high of 12,264 and a close at 12,228. There seemed to be some buying across the board, esp. MCB which is up Rs.25 since yesterday. Lucky cement was the volume leader with 13 million shares traded. OGDC and BAFL are lagging in performance in comparison with other stocks that rose today. Hopefully the upside will continue 2moro with 12,300 being tested. A close over 12,300 would be a positive step towards 12,500.

News : The combined profit of listed commercial banks has increased by 42 percent to Rs 49.7 billion in the first half of 2007 as compared to Rs 34.95 billion earned in the corresponding period last year.The impressive earnings growth was mainly driven by non-interest income of the banks… Aaj News

The introduction of ‘Stock index future contract’ (SIFC), based on KSE-30 index, is ready, and the management of Karachi Stock Exchange has arranged presentation of the ‘concept paper’ on Thursday, August 30.For testing purpose, the SIFC market would be deployed in one Karachi automotive trading system - trading working system (KATS-TWS) per member, and the Information Technology (IT) Division will start deployment from August 31… Aaj News

The Sui Southern Gas Company (SSGC) is fast heading towards total a collapse, as all its basic indicators are showing alarmingly poor performance. SSGC’s performance data for 1999-2005, made available to Business Recorder, indicated that its trade debt increased from Rs 5.239 billion in 1990-2000 to Rs 8.754 billion in 2004-05, showing a jump of Rs 3.5 billion in 7 years… Aaj News

The Commissioner of Securities Exchange Corporation of Pakistan (SECP) Salman Ali Shaikh said on Wednesday that Pakistan will be the first emerging market to initiate REITs.(Real Estate Investment Trusts) "The objective of REITs is anchored around the concept to introduce an alternative asset class with the purpose to add depth to the capital market and provide transparency to real estate sector in the form of comprehensive disclosures and accountability through a trust mechanism ingrained in the REITs Regulations," he added… Aaj News

Upper Caps : JOVC / Arif Habib Ltd 

Market Low : 12,017.88  High : 12,264.99 

Market Close : 12,228.05 – 187.16 points up 

12,708

August 16, 2007

12,708Given the fact that world markets continue to tumble perhaps we should consider ourselves lucky that the KSE-100 index closed down by only 77 points. While the Dow Jones index staged a recovery towards its close today, the FTSE-100 got buggered senseless closing down by 4.10%, its biggest fall since March 2003 . While the downside could continue in world markets due to the current liquidity crunch, we could see some pullback in the Karachi Stock market or being a Friday 2moro, some major bloodshed. 12,600 is holding as a support level at the moment and the next upward resistance is 12,860. The worst is perhaps not over yet, keep applying the Vaseline and let the dust settle.

Dividends : Soneri Bank : 20% Bonus. EPS : 1.45
Askari Bank : EPS : 4.96 

News :  The Karachi Stock Exchange (KSE) Board of Directors rejected the SECP suggestions regarding risk management made contingent upon the increase in CFS Financing. According to KSE Board members, the changes affected by Securities and Exchange Commission of Pakistan (SECP) in the modus operandi in risk management are unacceptable… Geo News

Upper Caps:Sui South Gas / Saudi Pak Bank

Market Low : 12,607.21 High : 12,790.97

Market Close : 12,708.65 – 77.94 points down  

Removal of CFS upper limit

August 11, 2007

The Securities and Exchange Commission of Pakistan (SECP) has announced to lift the upper limit of Rs 55 billion of CFS for all scrips, subject to certain conditions. The regulator has divided the CFS-eligible scrips into two categories, A and B, and prescribed new trading and financing regulations…

The SECP announced the eligibility criteria for 43 scrips (category A) eligible in CFS market and declared that the companies that have average daily impact cost of less that one percent, based on daily impact cost on an order size of Rs 500,000 during the review period, traded on more that 90 percent of the trading days during the review period, have free float of more than 20 percent of issued capital or 50 million free float shares, having average daily turnover of more than 500,000 shares during the review period and operating profit before tax in the last three full years of operations would be eligible for unlimited funding under CFS.

The category "A" scrips are including Pak Petroleum, P.S,O, National Bank, Lucky Cement, Engro Chemical, Bank of Punjab, MCB Bank, OGDC, Pak Oilfields, D.G.K Cement, Askari Bank, Nishat Mills, Fauji Fertiliser, Fauji Fert Bin Qasim, Hub Power, Adamjee Insurance, Arif Habib Sec., Allied Bank Ltd, Bank Al-Falah, Pioneer Cement, P.T.C.L.A, Maple Leaf Cement, Bank AL-Habib, Saudi Pak Bank, Sui North Gas, Faysal Bank, Bosicor Pakistan, Kot Addu Power, Azgard Nine, Dewan Cement, WorldCall Telecom, Fauji Cement, Stand. Chart Bank, Sui South Gas, Habib Metro Bank, Telecard, Soneri Bank, JS Bank Ltd, Cherat Cement, NIB Bank, Bank Of Khyber, Al-Abbas Cement and Meezan Bank.

The category "B" scrips are including Bankislami Pak, Kohinoor Textile, Cres. Comm Bank, Atlas Bank Ltd, Mybank Ltd, New Jubilee Life Assurance, Colony Mills Ltd, Attock Petroleum, Attock Refinery, BOC (PAK), Chenab Limited, Callmate Telips, Dewan Motors, Dewan Salman, EFU General Ins, Ferozsons (Lab), F. Nar Equities, ICI Pakistan, Indus Motor, K.E.S.C, Kohat Cement, Millat Tractors, Nishat (Chunian), Netsol Technologies, Pak Elektron, Pakistan Cables, Pakistan Cement, P.I.A.C. (A), PICIC Bank, P.I.C.I.C, Packages Limited, Pak PTA Ltd, Prime Bank, Pak Refinery, Pak Suzuki, Security Paper, Siddiqsons Tin plate, Thal Limited and TRG Pakistan. For more  details see : http://news.aaj.tv/news.php?pg=2&show=detail&nid=75501

14,053

July 18, 2007

14,053After 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.

Board Meetings for July - updated 

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

 

13,967

July 11, 2007

13,967The KSE-100 index made a high of 13,981, a low of 13,781 and closed up at 13,967. The market seems to have corrected and somewhat consolidated. Arif Habib Securities was the flavour of the day with 30.5 million shares traded and closed at upper cap. The index should test 14k once again and attempt to close above it.

News : To facilitate the business community, the Securities and Exchange Commission of Pakistan (SECP) has restarted the Companies Easy Exit Scheme (CEES) for a period of four months from July 15 to November 15, 2007.Through this scheme, the SECP has provided an opportunity to the dormant public and private unlisted companies having no assets and liabilities, to take advantage of the easy exit route and get their names struck off the register of companies… Aaj News

Karachi Stock Exchange (KSE) has approved the provisional listing and quotation of shares of Habib Bank Limited (HBL) consequent upon the approval of the offer of sale and completion of relevant requirements under the listing regulations of the exchange…The provisional listing will take place on July 16th in accordance with the regulation for future trading in the Provisionally Listed Companies (FTPLC) 2002,…The bank is proposed to be formally listed with effect from September 10, 2007 and accordingly the trading in the shares of the bank will be shifted to Ready Counter under T+2 Settlement System from the said date. The first settlement date would be September 12, 2007.. Aaj News

Upper Caps : Arif Habib Securities / Arif Habib Ltd / Crescent Commercial Bank / JS Bank /Netsol Technologies / Kohat Cement

Market Low : 13,781.37  High : 13,981.87

Market Close : 13,967.40 – 49.97 points up