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 ...
Posting will be sporadic after today for the next 10 days as Suttabhai is off to the mountains where internet coverage is scrappy to non-existent.
National Bank of Pakistan, the nation’s biggest lender by assets, said second-quarter profit declined 41.5 percent after it paid a higher rate of interest on savings accounts.Net income fell to 2.03 billion rupees ($24 million), or 1.88 rupees a share, from 3.47 billion, or 3.22 rupees a share, a year earlier, the Karachi-based lender said in a statement to the stock exchange today. Revenue fell to 8.92 billion rupees from 10.04 billion.The stock has advanced 69 percent this year.Moody’s Investors Service on Aug. 17 raised the outlook on the long-term foreign currency deposit ratings on National Bank to stable from negative, citing an increase in the nation’s bailout by the International Monetary Fund.The lender’s profit in fiscal first half declined to 6.32 billion rupees, or 5.87 rupees a share, from 8.1 billion, or 7.52 rupees a share,…Bloomberg
Pakistan State Oil Ltd., the nation’s biggest fuel retailer, said revenue may climb to 1 trillion rupees ($12 billion) by 2012 by increasing sales of bio-diesel and liquefied petroleum gas.The company plans to open 200 retail outlets for LPG, a fuel used by cars and for heating at homes, by June, Managing Director Irfan K. Qureshi said in an interview in Islamabad. The company reported revenue of 719 billion rupees last fiscal year, driven by diesel and gasoline sales.Pakistan State Oil needs to diversify its earnings after reporting the first loss in 33 years, when it was formed. PSO is investing in LPG and other fuels as Pakistan’s government tries to reduce its oil import bill, which accounts for about one fourth of overseas purchases…Demand for fuels is set to rise as the economy rebounds from the slowest pace of growth in eight years. Pakistan State Oil has a 61 percent share in the country’s refined oil market and 81 percent in crude oil sales,..The new product lines and inventory gains will help State Oil return to profit this fiscal year,… The company posted a loss of 6.69 billion rupees in the year ended June 30 as declining crude prices eroded the value of its inventory…. Bloomberg
The KSE-100 index closed up at 8,541 on Friday with a an increase of 226 points. The market is looking slightly overbought now and could well correct to 8,100 before reaching its next target of 8,700.
News : Pakistan State Oil Ltd., the nation’s biggest fuel retailer, raised 15 billion rupees ($180 million) to help avert defaulting on payment for importing fuels. The company got 10 billion rupees in loans from banks and 5 billion rupees in cash from the government,…Funds owed to the company increased to 90 billion rupees after power utilities failed to pay for fuel purchases, delaying Pakistan State Oil’s payments to the country’s oil refiners. The government will help to narrow the dues,…Pakistan’s government plans to sell bonds, known as term finance certificates, in the domestic market on behalf of Pakistan Electric Power Co., the state-owned utility, and disburse the amount to the company,..Pakistan State Oil shares rose 2.4 percent to 286.60 rupees, the highest level since Sept. 5, at 1:30 p.m. local time close on the Karachi Stock Exchange. The stock has advanced 98 percent this year, compared with a 46 percent increase in the benchmark stock index of 100 shares…. Bloomberg
It’s possible there could be some further correction in the Karachi Stock market this week as it struggles to close above 7,800. A correction would help pushing the market over 7,800 and past 8k which will mostly likely happen when the Monetary Policy is announced at the weekend .
News : Oil Marketing Companies will establish 200 ethanol petrol pumps across the country by 2010 at a cost of Rs4 billion…PSO will set up 30 E-10 filling stations in various cities of the country. The company has started selling from one of its petrol pumps E-10 fuel which is Rs2.40 per litre cheaper than the regular fuel….the government has already exempted the E-10 fuel from sales tax… The News
The Karachi Stock market got another bashing today and made a low of 6,855. Breaking 6,800 will lead to further downside and there are no real positive triggers on the horizon until the new leverage product comes into play & a cut in interest rates. It could be time to reach for the proverbial Vaseline jar….
News : The Oil Marketing Companies (OMCs) have announced increase in furnace oil price by Rs 4,000 per tonne, dealers said. The OMCs on Monday officially announced changes in furnace oil price and started supply of furnace oil on new rates with immediate effect, they added. According to dealers, the companies including Pakistan State Oil, Caltex and Shell have announced increase of Rs 4,000-4,341 per tonne in furnace oil price. With the current surge, furnace oil price has touched Rs 39,500-40,000 per tonne in the local market… Aaj News
The following is an article well worth reading written by the Director of Financial Services Tax with KPMG in Ireland…. "Capital gains tax (CGT) exemption on shares should be rationalised and dividend distributions by companies should be exempted. CGT exemption on shares should be available only where shares are disposed of after being held for one year. This exemption should be proportionately reduced and capital gains derived on sale of shares disposed of after being held for less than 3 months should be taxed at full rate.
The above will discourage people from investing for short term and will induce them to hold shares for longer term. Consequently, it will bring only the genuine investors to stock exchange and will filter out those who are there to make money overnight. This will bring the much needed stability to stock exchange index movements which will then reflect the true state of the country’s economy….The way our stock market works, it is certainly not a barometer of investment. In fact the stock market in Pakistan is nothing but a sophisticated casino of the West; the only difference is that income earned in a casino is subject to tax… Daily Times
The KSE-100 index rose to a high of 7,310 and then got another diarrhetic squeeze down to 7,050, closing at 7,060. The market looks to be headed for 6,800, unable to hold at its support level of 7,200.
News : Bcyo Industries Inc. a Mauritian company has expressed interest in buying Bosicor Refinery. According to a notice issued by Karachi Stock Exchange (KSE), the Mauritian company has shown interest to buy 55 per cent shares of Bosicor Refinery from its management and 34 per cent through public offers… Source : The News
Friday’s close saw the market back on track again, closing up with a big gain of 321 points ( 4.4% ). It looks like the market could continue upwards towards 8000. Volumes shrank down to 191.2 million compared to the previous 3 sessions.
News : The Economic Co-ordination Committee (ECC) of the Cabinet is likely to allow Pakistan Petroleum Limited (PPL) to get oil and gas exploration rights of Block 27 in Yemen…This step is a milestone by virtue of being the first effort by a local public sector company to extend its exploration activities beyond the border with a minimum financial commitment of $15 million… Aaj News
The Economic Co-ordination Committee (ECC) of the Cabinet is likely to approve, on Monday, a three-year oil refinery policy containing incentives for oil refineries and penalties if the refineries failed to complete the projects for upgradation of the petroleum products by 2012…. the new formula for ‘deemed duty’ for oil refineries would be implemented from May 1, 2009, if the ECC accorded its approval. Under the new policy, the Petroleum Ministry has proposed to increase in ‘deemed duty’ from 7.5 percent to 10 percent, with a cap at $80 per barrel…. Aaj News
The KSE-100 index finally underwent a good correction after many days of upward movement. Having made a high of 7,674 ,the market closed down at 7,340, losing 295 points (3.8%). Volumes were still on the high side with 297.1 million shares traded. The correction could well continue by another 250 odd points.
News : Pakistan’s Attock Refinery Ltd (ARL) will start erecting a new 12,400 barrels per day (bpd) diesel hydrotreater and an isomerization unit at its refinery before end-June to produce cleaner autofuels…The hydrotreater is used for removing sulphur from diesel produced at the 40,000-bpd refinery in Rawalpindi, while the isomerization unit helps boost the octane level and reduces benzene and olefins in gasoline. This move enable ARL to move to Euro II emission standards, which limit diesel sulphur content to 0.05 percent...Aaj News
Another stonking great performance for the KSE-100 Index, closing up at 7,191 , an increase of 3.73%. It’s possible that there could be some weekend 2moro after today’s big upward move.
News : Bosicor Pakistan is set to start production from the country’s largest oil refinery by June 2010 as part of its endeavour to become a leader in petroleum refining and marketing business, its Chairman Amir Abbassciy said on Thursday.The refinery, which will process 120,000 barrels of crude oil a day, and is in addition to its existing 30,000bpd refining unit, is going to complement the company’s oil marketing arm,..Bosicor which joined hands with private equity giant Abraaj Capital last year, has pumped $600 million to form a fully integrated petroleum business… The News
It is enhancing production from its existing refinery to 40,000bpd in the next few months. Work is underway on the construction of a sub-sea pipeline and single buoy mooring facility. And by year-end it will have constructed the country’s largest oil storage tanks.
The government announced the new petroleum policy for the year 2009, on Thursday. …Advisor to Prime Minister for Petroleum & Natural Resources, Dr. Asim Husain said that over 100 licenses would be issued for oil and gas exploration in the country. He said the new liberal policy will attract local and foreign investors and the government will provide them with all facilities in this regard…He said the country is producing 67000 barrels of oil per day… The News
The country’s two major cement manufacturers have shown their interest to acquire the controlling shares of Dewan Cement Limited which is presently running in loss, …Sources said the consortium of Pakistan banks, which was financing the Dewan Cement, has now approached the Lucky Cement Company and the DG Khan Cement Company with a view to convince them to strike a deal either to acquire the controlling shares of Dewan Cement or at least make a partnership with the said company…. The Nation
The Karachi Stock market made a high of 5,924 and closed lower after some profit taking. The index looks like it might struggle its way towards 6200, depending on what further political bullshit transpires.
Dividends : Shell Pakistan has reported a loss after tax of Rs5.164 billion during the first half of 2008-09 compared to profit after tax of Rs1.689 billion in the corresponding period last year. According to the financial results reaching Karachi Stock Exchange (KSE) here on Thursday, the oil marketing company has recorded a pre-tax loss of Rs8.420 billion during the period ending December 31, 2008. Loss per share stood at Rs75.41 during the period under review against an earning per share of Rs24.66 in the same period last year… Source : The News
News : The Petroleum Ministry on Tuesday agreed to increase deemed duty from 7.5 percent to 10 percent for oil refineries with an upper cap at $80 per barrel crude oil price in the global market. According to new proposed formula, oil refineries will not be able to get 10 percent deemed duty if crude oil price exceeds $80 per barrel in international market…it was also decided in a meeting that the government would provide loans to oil refineries to expand their operations according to their capital value. The oil refineries will have to pay these loans after a five-year period. Oil refineries are not currently meeting the international standards even after receiving 7.5 percent deemed duty… Aaj News
The week began at 5,573 and the Karachi stock market dipped down below 5,400 on fears of the accounting process for all companies for their last quarter results. On Friday the index rose 3.5% on the news that the SECP had relaxed the the accounting treatment for equity securities under the International Accounting Standard ( IAS) (see article below) . Now that the issue has been clarified and the relaxation given until Dec.31st 09, there should be a boost in the market in the coming week across the board. Results for next week include MCB, PSO, & ICI Pakistan.
The Securities and Exchange Commission of Pakistan (SECP) has granted relaxation in the accounting treatment for equity securities held by the companies under the head ‘Available for Sale’ as required under International Accounting Standard "Financial Instrument: Recognition and Measurement" (IAS 39)…According to details issued by the SECP, the relaxation is valid till December 31, 2009 and has been granted in the light of representations from various stakeholders including Mutual Funds Association of Pakistan (MUFAP), Insurance Association of Pakistan (IAP), Pakistan Banking Association (PBA), Leasing Association of Pakistan (LAP), Modaraba Association of Pakistan (MAP), Karachi Stock Exchange (KSE) and the corporate sectors….The final decision on this issue was taken by both regulators unanimously and simultaneously so that the uncertainty that had recently been generated on this issue should come to an end as many companies were in the process of finalising their annual accounts and half yearly accounting statements, the SECP said…. Aaj News
The Chairman of the Federal Board of Revenue (FBR) Ahmed Waqar has said that a fund worth Rs75 billion is being set up to bail out Pakistan State Oil (PSO) from the financial crunch….Chairman FBR said that the fund would be constituted by the end of this month, which would help PSO pay its debts and further make payments to refineries… The News
As expected, the KSE-100 index shot up today closing 404 points up at 10,853. Despite the 400 point rise, volumes were relatively low with 87.6 million shares traded. The 1% interest rate hike was within market expectations and no further hikes in the CRR & SLR were seen as positive. Now that the uncertainty of the rate hike is over, the market should move upwards in lieu of the current result season. The next upward resistance is 11,100. Oil jumped up by $5 to127 today due to a decline in US gasoline inventories, any fucking excuse for its pathetic uncontrolled speculation.
Fauji Fertilizer Company (FFC) has posted a net profit of Rs3.3 billion for the first half of calendar year 2008. This is 38 per cent higher than Rs2.4 billion the Company earned in the corresponding period last year…The Earning per Share (EPS) for the said period enhanced to Rs. 6.7 as compared to Rs. 4.8 in same period in 2007. Earnings of the company increased on the back of higher urea prices under the review period as price increased to Rs.600 per bag by Jun 2008, as well as higher volumetric urea sales, standing at 1.2 million tons as against one million tons in first half of 2007… net sales of the company increased by 39 per cent to stand at Rs14 billion compared to Rs10 billion in the corresponding period last year… The News
News : The Economic Coordination Committee (ECC) of the cabinet on Wednesday approved the new oil pricing mechanism, reducing deemed duty for oil refineries and import duty on crude oil import to 7.5 percent each and fixing margins of OMCs and dealers… Federal Finance Minster Naveed Qamar said the measures taken would not benefit consumers. These measures would help the government reduce the subsidy on diesel by Rs 8.15 per litre. The minister said the government could not pass on the benefits of the reduction in OMCs’ and dealers’ margins to consumers. He said the government was still giving Rs 35 per litre subsidy on diesel that amounted to Rs 1 billion a day. The minister also said the ECC had fixed the margins of Oil Marketing Companies (OMCs) and dealers’ commission according to crude oil price of $100 per barrel. The ECC has also decided to reduce the deemed duty (a subsidy) for oil refineries from 10% to 7.5%. Import duty on crude oil has also been reduced from 10% to 7.5%… Daily Times
The government is considering a crackdown on cement manufacturers against raising cement prices to over Rs 400 per 50 kg bag, without any justification,…The issue was discussed in the meeting of the Economic Co-ordination Committee (ECC) of the Cabinet on Wednesday wherein it was confirmed that cement manufacturers have raised the price of 50 kg cement bag to Rs 400 at a time when the construction season is at peak in the country.Sources said that Finance Ministry has been asked to investigate the reasons for the sudden increase in cement prices when there was no substantial change in input costs. Analysts have calculated that the cost one 50 kg cement bag is in the range of Rs 230-240, which means that the manufacturers are overcharging the consumers by approximately Rs 160 per bag….the government was considering withdrawing recent increase of 20 percent in federal excise duty (FED) on cement because of its negative impact on construction industry throughout the country. The government had raised FED by Rs 150 per ton to Rs 900 from Rs 750 in the federal budget besides enhancing one percent general sales tax (GST)… Aaj News
The KSE-100 index got hammered today on investors’ fears of another interest rate hike due to be announced 2moro. The market fell 453 points to close down at 10,578. It could fall further depending on the amount of the interest rate hike, the bigger the hike, the greater the fall. Be prepared with large jars of Vaseline.
News : The government has decided to phase out custom duties on petroleum products in a move to prevent masses from the effect of subsidy reduction in the future, Federal Minister on Finance Naveed Qamar said….He said the government has decided to reduce the profit margins of Oil Marketing Companies (OMCs), refineries and dealers on the sale of petroleum products…Qamar said the government is also considering to merge diesel subsidy in 16 percent General Sales Tax (GST) levied on each litre…. Daily Times
The Karachi Stock market opened up and stayed positive all day, closing at 10,784. The market rose in anticipation of the Finance Minister’s visit this afternoon . He announced that the EMOF would be Rs.20 billion and would be managed by NIT. Also mentioned that the Govt. would work with the SBP to have a balanced monetary policy and promised that its net borrowing from the SBP would be kept at zero. Along with the expected Saudi oil payment facility, there seems to be enough positive news to stabilize the market at current levels. The next upward resistance is 11,100.
News : The government has capped the profit/margin of oil marketing companies (OMCs) and dealers on oil sale at July 1, 2008 level, and constituted a committee to work out some methodology to give relief to the consumers. Acting Secretary, Petroleum, G A Sabri, announced government decision of capping OMCs’ and dealers’ profit/margin here at a press conference.He said that OMCs and dealers’ profit/margin capping would give a benefit of Rs 7.5 billion to the consumers, per annum, in oil prices….the government had also reached an agreement with refineries, which provides that the latter, as key player of the oil sector, would go for expansion in their production capacity to help the country meet its growing energy demand. He said the committee would decide the issue of deemed duty–a protection given to the refineries under exiting oil pricing formula….Aaj News
Saudi Arabia is in talks to allow Pakistan to defer payments for crude oil sales during the current fiscal year, Pakistan’s de facto finance minister Naveed Qamar said on Tuesday."We are in talks with Saudi Arabia about the oil facility and there will be an announcement soon from Saudi Arabia," Qamar told an audience at the Karachi Stock Exchange, where he was visiting to reassure investors after a precipitous fall in share prices… Aaj News
Finance Minister Naveed Qamar announced here on Tuesday that Rs 20 billion ‘Equity Market Opportunity Fund’ (EMOF) would be launched within the current week. Addressing members of Karachi Stock Exchange (KSE), the minister said that the Rs 20 billion EMOF would be chanelled through National Investment Trust (NIT)…He said that the government has reduced borrowing from State Bank. The government would either not borrow, or borrow negligibly from the central bank, he said, adding that the government would use other sources to generate funds. He announced that the government would re-launch the privatization programme, after approval by the Cabinet, to generate more funds. The minister said that oil price hike was an international issue. He noted that the government was facing a challenging situation due to unprecedented rise in oil prices. He observed that the monetary policy should not be further tightened despite inflationary pressure. "We want to maintain a balance between monetary and fiscal policies in co-ordination with SBP, and boost exports", he said… Aaj News
Friday 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
After yesterday’s volume of 50 million, the market resumed its previous low volume, trading only 10.5 million shares. The market remained down the whole day and in the last 2-3 minutes jumped up by 60 odd points on heavy buying in HBL. The outlook for 2moro looks the same till there is some clarification on the lock revision after the 15th. Oil rose by $5 today.
News : Credit Suisse launched its operations in Pakistan on Thursday through a wholly owned subsidiary, Credit Suisse Pakistan (Private) Limited based in Karachi. It will initially offer equity research and research sales to institutional clients, and aims to expand its operations to full broking-dealing services…Credit Suisse has already put in place a research team for Pakistan, with active coverage of the country’s equity market. It started research coverage of Pakistan in 2006 and covers 50 Pakistan stocks. A paper released to the media on the occasion says that Credit Suisse is investing in Pakistan because it believes it has an exciting economic story that offers attractive opportunities to investors… Daily Times
The government is likely to reduce the deemed duty from 10 percent to 5 percent for oil refineries in an attempt to stabilise the oil prices in the country and a summary has been prepared in this regard that would be presented before the Economic Coordination Committee (ECC) of the cabinet for the formal approval… Daily Times
Pakistan State Oil (PSO) has registered significant growth in the sales of diesel and petrol by 20 and 30 percent, respectively during the financial year 2007-08.According to official figures released Thursday, the state-run oil marketing company has carried out 5.3 million metric tonnes sales of diesel in the closing fiscal year 2007-08, against 4.4 million metric tonnes in 2006-07. Source : Daily Times
The KSE-100 index actually went into the green zone a couple of times today, the first time in many days. The rapid (but long overdue ) support measures by the SBP on halting the rupee’s slide and yesterday’s news of a Rs. 50 billion market fund being talked about , seemd to be positive catalysts to a certain extent. Volume rose to nearly 50 million shares traded today and several stocks lifted from their lower caps to close plus. Perhaps the market will make a positive close 2moro .
News : Pakistan State Oil (PSO) has paid all its outstanding dues worth Rs 57 billion to different local refineries and banks on purchase of petroleum products particularly diesel and petrol….. the government had granted Rs 62 billion as Price Differential Claims (PDC) to the state-run oil marketing company a week ago. It has also paid outstanding loans of more than Rs 30 billion to the banks… its market share has increased to 71 percent in the current month as compare to 59 percent during May… 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 made a high of 12,609 and closed at 12,452. As expected yesterday, there were quite a few lower caps and the market cooled off today with some profit taking. There could be some weekend selling 2moro as well. Oil shot up over $140 based on a weak dollar and irresponsible remarks from OPEC’s president Chakib Khelil, who said that prices could rise to $150-170 during the summer (see the article below). The market’s next upward resistance is 12,550 and a close above that would head towards 12,900. Given its current 1% downside, it could get there soon.
News : The government has asked the Oil Marketing Companies (OMCs) to submit proposals for setting up new mechanism for profit margin in the proposed oil pricing formula… While on the other hand, the OMCs have opposed the possible move by government to freeze their margin…The government believes that the profit margins of OMCs were fixed when the oil prices were low and the gains of these companies were also less, however the rising oil prices in the international market have caused increase in the margin of OMCs. Government wants to maintain of OMCs margin at 3.5 percent but intends to change the basis of its determination that will freeze the margin of OMCs. But OMCs are not in favour of it and therefore the meeting remained inclusive… Daily Times
The president of OPEC, Algerian Energy Minister Chakib Khelil, forecast on Thursday that oil prices could rise to $150-170 a barrel during the northern hemisphere summer.If there were real demand for extra oil, the Organization of Petroleum Exporting Countries would do what was needed to satisfy it, he said, affirming that there was enough oil in the world for about the next 50 years. “I predict probably prices of $150 to 170 this summer. It (the market) will probably fall a bit towards the end of the year,” … Daily Times
The Pakistan Credit Rating Agency (PACRA) has upgraded the long-term and short-term entity rating of NIB Bank Limited to A1+ (A One Plus)… Source : The News
The 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
The new measures imposed by the SECP this morning saw the KSE-100 index soar to an all time daily gain of 960.50 points, the highest ever one day gain in the history of the Karachi Stock Exchange. The new rules will provide temporary relief from the " bleeding rectum syndrome " for most investors for the next month and help those who were stuck, to have a choice to exit the market comfortably or continue. There are already articles in print with people moaning that these are articficial measures etc. etc, but the decision was wisely taken at a time when the market could have snowballed downwards even further with margin calls and liquidity problems. While the political instabilty and indecisive governance continues, along with the threat of a further discount rate hike looming ahead, sleep peacefully with the thought that the downside is only 1% 2moro !
News : The government has scrapped the policy of fortnightly announcing oil prices and has barred the Oil and Gas Regulatory Authority (Ogra) from fixing the rates for consumers on first and 15th of each month. From July 1, 2008, any upward or downward revision in the oil prices would be made on as-and-when-needed basis… Aaj News
There is no plan to cut privatization proceeds in the year 2008-09, a Privatization Commission (PC) spokesman said Tuesday.Referring to a news item thatappeared in some section of the press about the privatization proceeds target cut by 98 percent, he said PC has been able to achieve privatization proceeds amounting to Rs 27 billion so far and not Rs 1.6 billion as reported in the said news item…. Daily Times
It’s possible there could be some further correction in the Karachi Stock market this week as it struggles to close above 7,800. A correction would help pushing the market over 7,800 and past 8k which will mostly likely happen when the Monetary Policy is announced at the weekend .
As expected, the KSE-100 index shot up today closing 404 points up at 10,853. Despite the 400 point rise, volumes were relatively low with 87.6 million shares traded. The 1% interest rate hike was within market expectations and no further hikes in the CRR & SLR were seen as positive. Now that the uncertainty of the rate hike is over, the market should move upwards in lieu of the current result season. The next upward resistance is 11,100. Oil jumped up by $5 to127 today due to a decline in US gasoline inventories, any fucking excuse for its pathetic uncontrolled speculation. 
The KSE-100 index got hammered today on investors’ fears of another interest rate hike due to be announced 2moro. The market fell 453 points to close down at 10,578. It could fall further depending on the amount of the interest rate hike, the bigger the hike, the greater the fall. Be prepared with large jars of Vaseline. 
The Karachi Stock market opened up and stayed positive all day, closing at 10,784. The market rose in anticipation of the Finance Minister’s visit this afternoon . He announced that the EMOF would be Rs.20 billion and would be managed by NIT. Also mentioned that the Govt. would work with the SBP to have a balanced monetary policy and promised that its net borrowing from the SBP would be kept at zero. Along with the expected Saudi oil payment facility, there seems to be enough positive news to stabilize the market at current levels. The next upward resistance is 11,100.
Friday 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 !
After yesterday’s volume of 50 million, the market resumed its previous low volume, trading only 10.5 million shares. The market remained down the whole day and in the last 2-3 minutes jumped up by 60 odd points on heavy buying in HBL. The outlook for 2moro looks the same till there is some clarification on the lock revision after the 15th. Oil rose by $5 today.
The KSE-100 index actually went into the green zone a couple of times today, the first time in many days. The rapid (but long overdue ) support measures by the SBP on halting the rupee’s slide and yesterday’s news of a Rs. 50 billion market fund being talked about , seemd to be positive catalysts to a certain extent. Volume rose to nearly 50 million shares traded today and several stocks lifted from their lower caps to close plus. Perhaps the market will make a positive close 2moro .
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 made a high of 12,609 and closed at 12,452. As expected yesterday, there were quite a few lower caps and the market cooled off today with some profit taking. There could be some weekend selling 2moro as well. Oil shot up over $140 based on a weak dollar and irresponsible remarks from OPEC’s president Chakib Khelil, who said that prices could rise to $150-170 during the summer (see the article below). The market’s next upward resistance is 12,550 and a close above that would head towards 12,900. Given its current 1% downside, it could get there soon. 
The 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. 
The new measures imposed by the SECP this morning saw the KSE-100 index soar to an all time daily gain of 960.50 points, the highest ever one day gain in the history of the Karachi Stock Exchange. The new rules will provide temporary relief from the " bleeding rectum syndrome " for most investors for the next month and help those who were stuck, to have a choice to exit the market comfortably or continue. There are already articles in print with people moaning that these are articficial measures etc. etc, but the decision was wisely taken at a time when the market could have snowballed downwards even further with margin calls and liquidity problems. While the political instabilty and indecisive governance continues, along with the threat of a further discount rate hike looming ahead, sleep peacefully with the thought that the downside is only 1% 2moro !
