KARACHI STOCK MARKET NEWS

Another day of piteous low volumes with the KSE-100 index trading only 11.9 million shares. The market has closed down for the fourth consecutive session and has lost 326 points since Thursday.  The only solace here is that prior to the new measures with a 1% downside , the current four session loss would have been incurred in one. The erosion has been slowed down and  bearing  in mind that as the other world and regional markets are getting fucked badly at the moment,  the oil price rearing its ugly head at $144 today and the dollar sliding daily, 1% down a day is not so bad ! If this carries on 12k will break by the end of the week. A Govt. that cannot calculate properly (CNG price issue), let alone decide on anything, doesn’t help matters either !

News : The Securities and Exchange Commission of Pakistan (SECP) has taken major steps to promote the implementation of international  practices in Real Estate Investment Trust (REIT) valuation. Launching the REIT product in February 2008, the lack of transparency is a major bottleneck in the real estate sector in Pakistan. The SECP has built a strong REIT implementation team, which is multi-disciplinary and includes a civil engineer and a real estate broker. To study REIT licensing and evaluation, SECP selected Malaysia as a relevant jurisdiction. Five officers of the Commission were sent on a study tour to Malaysia to understand the problems and issues faced by the Securities Commission Malaysia in the monitoring and regulation of Malaysian REITs…. Daily Times

Market Low : 12,123.69 High : 12,221.53

Market Close : 12,126.10 — 95.43 points down

The KSE-100 Index opened up, made an intra-day high of 14,052 and closed up at 14,018. NETSOL was the flavour of the day with 10.8 million shares traded. Yet another day of low volumes and the inability to close above 14,050.

Board Meetings for February 2008 - updated.

PSO was due to announce its results today, but the board meeting has been postponed to the 14th.

News : World oil prices declined on Wednesday after the US government reported another rise in crude oil inventories amid mounting concern about America’s economic growth…Prices slumped after the US Department of Energy said American crude oil inventories had jumped by 7.0 million barrels in the week ending February 1, marking a fourth straight rise in crude stocks.The increase was much higher than analysts’ consensus forecast which had predicted a gain of just 2.2 million barrels... Aaj News

Pakistan, which issued rules for real estate investment trusts today, aims to attract as much as 20 billion rupees ($320 million) in 12 months by drawing investors to a property market where prices have tripled in three years…The government said in the budget last June that owners will get a tax holiday till 2010 on the sale of property to a real estate investment trust. The REITS will be regulated by the Securities & Exchange Commission of Pakistan….Real estate trusts pool funds to buy properties and distribute rental income among investors. Pakistan’s REITs will be required to distribute 90 percent of profits… Source : Bloomberg

Federal Finance Minister Dr Salman Shah has said that global depository receipts (GDRs) of National Bank, Habib Bank and Kapco and ‘plus’ Euro Bonds will be issued in March-April this year to reduce the fiscal deficit… Aaj News

Upper Cap : WorldCall Telecom

Market Low : 13,991.88 High : 14,052.09

Market Close : 14,018.45 –26.57 points up

On Friday, the KSE-100 index made a high of 14,059 and closed down at 13,974. Volumes were extremely low with only 73.5 million shares traded. Upside resistance is 14,070 and downside support is 13,800.

News : The cement sector exports witnessed a growth of 148 percent, to 3.596 million tons, during the July-January period of the current fiscal year against 1.450 million tons during the same period of last year in the wake of rising international demand, industry sources said on Friday…Cement exports during January 2008 also rose by 152 percent to 0.618 million tons as compared to January 2007… Aaj News

The Securities and Exchange Commission of Pakistan (SECP) has introduced two types of Real Estate Investment Trusts (REITS) schemes providing opportunity to the general public to pool funds for investment in the real estate sector…REITs in Pakistan are introduced in the form of a trust where the property itself will be vested in the name of the trustee and REIT Management Company (RMC) will look after the Real Estate on behalf of the unit holders…The SEPC has said that the REITs have been provided a tax exemption, if 90 percent of the income is being distributed. The REIT’s will initially be allowed in Islamabad/Rawalpindi, Karachi, Lahore, Peshawar or Quetta... Aaj News

Market Low :13,957.35 High : 14,059.10

Market Close : 13,974.40 – 42.60 points down