KARACHI STOCK MARKET NEWS

The KSE-100 index opened up making a high of 15,155 and then got bashed down to close at 14,913. The correction could continue 2moro as well before any signs of recovery. Total traded volumes shrunk down to 135 million shares. Oil hit a new peak above $108 today. Downside sees 14,750 as support.

Dividends : Azgard Nine : 12.5 % Cash EPS : 4.46

Azgard Nine has recorded a massive growth of around 835 per cent in its net profit, which rose to Rs1,453.5 million for the full-year ended December 31, 2007, against Rs155.5 million in 2006. Accordingly, the board of directors of the company has recommended a final cash dividend of Rs1.25 per share for the year ended December 31, 2007. This phenomenal growth in the company’s profit was registered owing to doubling of its net sales to Rs12.309 billion against Rs6.505 billion in the same corresponding period last year… Source : The News

News : To boost Pakistan’s economy by substituting imported oil and gas with indigenous supplies, a Canadian Company, Niko Resources Limited will invest $32 million for oil and gas exploration over four blocks located in the Arabian Sea. The Company also plans to invest more than $200 million subject to availability of viable structures after conducting seismic survey… Daily Times

After Karachi, now, a countrywide power crisis is in the offing as the Pakistan State Oil (PSO) has issued notice to the Pakistan Electric Power Company (Pepco) of stopping supply of furnace oil to the thermal power generation units from March 11 onward for default on outstanding payments.Sources said that PSO issued the notice, to Pepco, in a meeting in Karachi on Thursday last for halting of furnace oil supply to the thermal power generation units, saying that its growing financial crunch was making difficult for it to maintain the supply from March 11 onwards… Aaj News

Upper Caps : Azgard Nine / Packages Ltd

Market Low : 14,875.22 High : 15,155.45

Market Close : 14,913.29 – 171.89 points down. 

The Karachi Stock market opened up and stayed positive all day. It made an intra-day high of 14,360 and closed up at 14,324. NIB Bank was the flavour of the day with 28.8.million shares traded. The market looks to be continuing towards 14,500.

News : The Textile industry, the largest sector having a 65 percent share in the country’s exports, shows a dismal performance by registering only two percent growth during the first quarter of the current fiscal year as compared to the 14.3 percent growth during the same period of the previous year… Aaj News

Upper Caps : Arif Habib Ltd / Attock Refinery / Azgard Nine

Market Low : 14,163.11 High : 14,360.54 

Market Close : 14,324.51 –161.39 points up 

The KSE-100 index ripped through 14k making an all time intra-day high of 14,169 and closed up at a record high of 14,132. It seems that the correction down to 13,781 was what the market needed to rise further to head towards 14,500. Memories are short in this market and the S&P downward revision to stable from positive seems not to have hindered today’s upside. Despite the upcoming result season there could be another bang downwards as most stocks are not seen as undervalued anymore. It is interesting to note that most of the blue chips had higher prices at a lower index compared to their prices currently.

News : BP Plc. said on Thursday it has withdrawn interest in joining a consortium bidding for a 51 percent stake in state-run Pakistan State Oil (PSO), …Pakistan’s Supreme Court placed a stay order on PSO’s planned privatisation until a hearing scheduled for the end of August… Aaj News

Price of Dai’ Ammonium Phosphate (DAP), an essential crops nutrient, has shot up by Rs 200 per 50-kilogram bag across the country due to its soaring prices in the world market, traders said on Thursday… Source :Aaj News

Following the success of "Pakistan Capital Markets Day" in London on July 6, which was held in collaboration with the London Stock Exchange, the Central Depository Company of Pakistan (CDC) held a similar event in New York on Wednesday (July 10).The CDC organised this road show with the support of Citibank and Pakistani brokerage firms, Invest-Cap Securities and AKD Securities… Aaj News

The first-ever national textile policy, schedule to be announced in the next two weeks, will not offer any cash subsidy, rebate and relief to the textile sector, although the industry is desperately expecting a "relief-cum- incentive" package… Aaj News

Upper Caps : Arif Habib Securities / Arif Habib Ltd / SCBPL / Bhosricor / Pioneer Cement

Market Low : 13,967.40 High : 14,169.18 

Market Close : 14,132.18 — 164.77 points up 

The KSE-100 index was a choppy ride today with an intra-day high of 13,312 and a low of 13,181 closing up at 13,237. PSO roared up to close at its upper limit at Rs.403.05 based on news of a pre-bid meeting coming soon (see below). and United Bank Ltd made a new record close at its upper limit at 218.40. 2moro’s pre-budget "Friday Show'’ is anyone’s guess whether the market will get bashed, remain stable or close higher. The Karachi Stock market is quite overbought with a RSI-14 of nearly 80. The next upward resistance is 13,332 followed by 13,400, and the downside could see 13,130 to 13,000.

News : After the Sindh High Court’s judgement, the Privatisation Commission on Tuesday conveyed to short-listed parties on the telephone that they should get ready for pre-bid meeting on Pakistan State Oil (PSO) sell-off at a short notice. The pre-bid meeting would be the second last leg as it would be quickly followed by bidding to complete the transaction…. Selling PSO in the current fiscal year would ease pressure on the government forcing it for massive domestic borrowing. The State Bank of Pakistan (SBP) has already cautioned that the government policy of borrowing over and above the budgetary estimates can be problematic…. Aaj News

Yielding to a major demand of the textile sector, the government has withdrawn Presumptive Tax Regime (PTR) and reduced income tax on export proceeds from 1.25 percent to 0.5 percent under the normal income tax law…Under the new arrangement, the CBR would carry out normal income tax assessments of the textile companies under the Income Tax Ordinance, 2001. Second, the income tax at the rate of 0.5 percent would be applicable to the export proceeds of the textile companies. Third, a 100 percent depreciation allowance would be available on machinery and equipment from July 1, 2007… Aaj News

Upper Caps : Pakistan State Oil Ltd. / United Bank Ltd

Market Low : 13,181.84 High : High : 13,312.83

Market Close : 13,237.68 – 25.58 points up