100-index closes at 9664 points

KARACHI: Karachi Stock Exchange (KSE) Friday witnessed mixed trend and benchmark 100-index could not maintain 9700-point level.

The trading began in positive territory and on one point in time the index was seen perching at 9842 points; but, profit-taking by the investors pushed the index off the position, which closed on 9664 down 50 points.

Trading volume closed at 450 million shares at six-month highs with Pak PTA as volume leader which closed at Rs6.28 up eight paisa.

KSE30-Index closed at 10,435 down 43 points.

The experts say 100-index can cross the 10,000-point barrier.


Karachi Stock Exchange with massive foreign buying

KARACHI: Foreign investors scrambled over each other to buy Pakistani stocks on Monday, registering a record purchase of Rs2 billion, equivalent to $24 million.

That sent the offshore investment in Pakistani stocks soaring to $95 million in August — the highest in any single month for 17 months. The previous one-month best was recorded in Feb 2008, when the foreign funds had purchased $143 million worth of shares. But that was at the height of bull run with KSE index reaching the level of 15,000 points.

Arif Habib, former chairman KSE, says he is scarcely surprised by the foreigners’ appetite for local equity.

‘The KSE offers yield of 8.4 per cent and stocks are trading at the price-to-earnings multiple of 6.3 times,’ he said, adding that when compared to low yields and high valuations of regional markets, the foreigners’ dash for Pakistani stocks made sense.

India, for instance, offers yield of 1.4 per cent; Indonesia 2.6 per cent and China 3.2 per cent. Those markets are expensive in terms of price multiples of 15.6 times for India; 12.8 times Indonesia and 22 times China.

Mr Habib contended that rupee pressure was not of concern to the foreign investors. ‘In the last 10 years, the rupee has depreciated by an average of only 10 per cent a year,’ he said.

Mohammad Sohail, CEO at Topline Securities, observed that the overwhelming concern of foreign funds when entering any market was the safety of their investment. He said that foreign fund managers were comforted by the recent developments including the built-up of country’s buffer reserves to $13 billion following the receipt of funds from IMF; improvement in economic indicators and the up-tick on Pakistan economy by international credit rating agencies, Standards & Poors and Moody’s. S&P upgraded Pakistan’s sovereign rating by one notch to B-, still six levels below investment grade. Foreigners’ share in total volume at KSE remained at healthy nine per cent during August.

Mainly on the back of foreign buying, KSE-100 index rose by 12 per cent during the month and has shot up by 74 per cent since it hit the pit in Jan this year. Haji Ghani Haji Usman, member on the KSE board observed that global equity markets had recovered by an average of 35 per cent and since KSE had a greater fall, it also was showing faster recovery. Realising that blue chip Pakistani stocks were available at dirt cheap prices, foreign funds were not willing to pass up the opportunity, Haji Ghani said.

But compared to what other regional markets have attracted, KSE is only a starter. Mumbai Stock Exchange, for instance, has seen a phenomenal net buying of $8.1bn by foreign investors in first eight months. No firm figures are available to indicate aggregate foreign investment in Pakistani equity market.

But Mr Arif Habib estimates it to be somewhere around $800 million.

KSE closes on negative note at weekend

KARACHI: Karachi Stock Exchange (KSE) after witnessing a bull run during the last four session ended Friday on a negative note as KSE-100 Index lost 101 points to finish the day at 6340.

Profit taking on last trading day of the week eroded some of the gains recorded in the past four days.

Trade volume was registered at 220 million shares with OGDC emerging as volume leader which slipped Rs3.16 to close at Rs62.99.

KSE-30 Index declined by 149 to close at 6,831.

Bullish trend prevails in KSE

KARACHI: Karachi Stock Exchange (KSE) witnessed bullish trend as benchmark 100-Index gained more than 100 points to cross 6000 points psychological barrier during trading.

According to sources, positive trends are witnessed during trading and KSE-100 index crossed 6000 points after gaining more than 75 points.

source : jang.com.pk

Banks begin selling shares of defaulting KSE members

KARACHI: The banks have started selling shares of the Karachi Stock Exchange (KSE) members, who failed to make payments of the margin amounts to the banks.

KSE members told Geo News that several major members were not being able to make payments of the margin for the last two months, which has prompted the banks selling all those share that they (defaulting members) had kept as security with the banks.

One senior banker told Geo News that the banks currently have investments of over Rs30 billion on account of shares financing, while the recovery of margin to the banks for the last two months remained negligible, which has compelled the banks selling these shares for meeting their losses. It may be recalled that the finance ministry had already directed the banks restricting their investments in the bourses.
source : jang.com.pk

Profit taking erodes 102 points at KSE

KARACHI: Karachi Stock Exchange (KSE) witnessed a mixed trend on the opening day of the trading week on Monday.

The benchmark KSE-100 Index lost 102 points but managed to sustain above 6,000 level at 6,041.

The trade volume was recorded at 120 million shares.

OGDC was the star performer in terms of volume, whose share lost Rs1.62 to close at Rs52.40.

Market analysts say the market could witness fluctuation in the coming sessions.

source : jang.com.pk

KSE appears back on track, index breaches 6000

KARACHI: Karachi Stock Exchange (KSE) today opened positive, as the investors were seen jostling for buying and selling of shares, which saw the KSE-100 index moving upward from the beginning.

The market on Tuesday, the second day of the week went on trading with high sentiments and the benchmark KSE-100 index was seen shot up by 100 points breaching the psychological barrier of 6000 points until the filing of this report.

Analysts told that the economy of the country showing signs of improvement and some positive announcements of the finance advisor made the difference in the market, as the investors shedding their weariness felt more confident and started taking interest in trading.

source : jang.com.pk

KSE trading activities this week remained limited

KARACHI: Trading activities this week remained thin at the Karachi Stock Exchange (KSE) and the benchmark KSE-100 index closed at 9187 points without witnessing any change in it.

The market this week opened with activities remaining lean and the trend sustained throughout the week. Average volume of trade this week was seen going up, which aggregated to 900,000 shares, while the average volume of trade recorded last week was 30,000. Analysts believed that International Monetary Fund (IMF) opposition to the introduction of a support fund in the market and opening the market without funds caused investors to adopt a cautious approach.

Stock markets continue to move lower on economic sentiment

TORONTO: Stock markets deepened their losses as Friday morning wore on, with investors putting their optimism aside once again to focus on the struggling global economy.

Toronto’s S&P/TSX composite index dropped 271.45 points in morning trading to 9,081.14, after gaining 430 points or five per cent Thursday.

The Canadian dollar was at 81.95 cents US, down 0.59 of a cent.

Media conglomerate Canwest Global Communications Corp. (TSX:CGS) reported a billion-dollar quarterly loss after writing down its Canadian TV operations by $1.01 billion, which “reflects a deterioration in the near-term profit expectations.” Its stock declined eight cents to 72 cents, down from $7.50 a year ago.

On Wall Street, the Dow Jones industrials dropped 241.41 points to 8,594 and the Nasdaq composite index slipped 57.79 to 1,539. Both indexes had gained 6.5 per cent in the previous session. The S&P 500 tumbled 30.03 to 881, after increasing seven per cent a day earlier.

Traders are re-focusing on the economy – and the picture keeps getting bleaker. The U.S. Commerce Department reported that retail sales fell 2.8 per cent last month – the steepest monthly decline on record, even worse than in the aftermath of the September 2001 terror.

U.S. Federal Reserve chairman Ben Bernanke said financial markets remain under “severe strain,” and he left open the door to further interest rate cuts. The Fed is scheduled to meet Dec. 16 at its last regularly scheduled meeting this year.

On the TSX, the gold sector fell back two per cent, although the December bullion contract surged ahead $34.20 to US$739.20 an ounce on the New York Mercantile Exchange.

The Toronto market’s energy sector dropped 4.5 per cent as the price of crude oil for December delivery declined $1.98 to $56.26 a barrel.