Advisor to Prime Minister on Finance Shaukat Tarin said on Tuesday that the government would sell Rs 20 billion shares of public sector entities to non-resident Pakistanis, for which an agreement has been reached with International Monetary Fund (IMF).
Talking to newsmen after addressing a seminar on global financial crisis, jointly organised by Pakistan Institute of Development Economics (PIDE) and IMF in the Planning Commission Auditorium, he said that this option (provision of Rs 20 billion) was still intact, and the government would intervene at the right moment, with the right price, and added that "what we commit, we execute". He, however, clarified that he had never made any promise to establish any market support fund for stock market brokers.
Talking about the depreciation of the rupee after removal of floor from the stock market, he expressed optimism that the rupee would appreciate, saying that it was the result of speculation in the market, which would end soon. He said that the government would be receiving more than $1.5 billion from different international financial institutions (IFIs) in February, "after which our trade deficit would come down".
When asked if he had any timeline to bring down the soaring inflation, he said that it was the government's top priority, and steps were being taken in the right direction. He said that the Sensitive Price Indicator (SPI) and Consumer Price Indicator (CPI) for November had shown declining trend compared with October. From January, a substantial declining trend in inflation would be visible, he added.
He expressed hope about further decline in oil and commodity prices in the international market, and added that this would definitely help the government in arresting inflation. He said that the government would pay special attention to value-added textile products, "because this sector is in trouble".
The Advisor said that the government was expecting surplus agriculture produce because of its farmer-friendly policies. Regarding any new tax policy for improving the tax-to-GDP ratio, he said that the government was not introducing any new policy in this respect. He said that the government would discover and address administrative gaps in this respect. Tarin said that the government would soon promulgate 'Money Laundering Act' in the country.
option of market support fund still intact: Tarin Said
Showing posts with label Stocks. Show all posts
Showing posts with label Stocks. Show all posts
Wednesday, December 17, 2008
Saturday, October 11, 2008
Stock Market closure : SECP and KSE to take decision today
A crucial meeting between Securities and Exchange Commission of Pakistan (SECP) and Karachi Stock Exchange (KSE) will be held on Saturday (today) to decide whether the stock market is kept closed for a few days or to take any other step to save the investors from further losses.
The meeting will discuss the proposals of KSE members to cap the CFS rates at 24 percent and to extend the CFS settlement period from 21 days to 25 days. The members proposed to keep close the stock exchange closed for few days if their said proposals are not accepted.
The meeting is being held at the time when many KSE members are in critical condition due to continuous decline in the share prices and lack of liquidity while some of them are nearing a default position.
Sources said that an informal meeting of the KSE members was held here on Friday to discuss the prevailing situation of the stock market. The members discussed various proposals. The lack of liquidity was the main concern for them and they discussed various proposals as to how the situation could be eased.
Later these proposals were also discussed in a meeting between KSE Managing Director Adnan Afridi and National Clearing Company of Pakistan Limited (NCCPL) Chairman Ali Ansari. The Chairman KSE Kamran Mirza also joined the meeting later. According to some sources the CFS was rolled over for one day as borrowers failed to get funds from CFS market on Friday. All the Friday's trading will be merged into the Monday's trading and the settlement will be held on Tuesday.
Prevailing uncertainty and rising lending rates forced the investors to stay on the fences on Friday and the benchmark KSE-100 index remained unchanged at 9,181.35 points level. The prevailing economic conditions coupled with increased CFS rates did not allow the market participants to take fresh positions, analysts said, adding that lack of liquidity remained the main reason behind the dull activity at the share market.
The ready market volumes slightly increased to 1.833 million shares as compared to 1.792 million shares traded a day earlier. The overall market capitalisation declined by Rs 4 billion to Rs 2.841 trillion. Out of the total 70 scrips traded on Friday, 12 closed in positive territory, 10 in negative while 48 remained unchanged.
Nimir Resins was the overall volume leader with 0.618 million shares however it closed at Rs 5.30 without any change. NIB Bank also remained unchanged at Rs 8.45 with 0.268 million shares. Southern Electric gained Re. 0.02 to close at Rs 3.92 with 0.2 million shares. Sitara Energy increased by Re. 0.25 to close at Rs 22.30 with 0.139 million shares. UDL Mod closed at Rs 4.33, up by Re. 0.13 with 0.102 million shares. KESC closed at Rs 3.80 without any change with 77,000 shares.
Gharibwal Cement gained Re. 0.49 to close at Rs 17.99 with 65,000 shares. Pak Elektron increased by Re. 0.45 to close at Rs 37.50 with 56,700 shares. UTP-Large Cap. lost Re. 0.09 to close at Rs 5.50 with 52,000 shares. D.S. Ind Ltd closed at Rs 14.85 without any change with 49,500 shares. National Foods and Shakarganj Mills were top gainers with Rs 3.82 and Re. 0.66 to close at Rs 80.35 and Rs 12.50 respectively while Pak Datacom and Stand Chart Mod were the worst losers with Re. 0.85 and Re. 0.68 to close at Rs 48.25 and Rs 10.50, respectively.
Ahsan Mehanti at Shehzad Chamdia Securities said that investors remained concerned over prevailing capital market crises mainly due to liquidity issues. Falling equity values in the international capital markets, economic crisis, declining rupee value, foreign selling, broker defaults and high lending rates remained chief concerns for the market participants, who opted to remain on sidelines.
The meeting will discuss the proposals of KSE members to cap the CFS rates at 24 percent and to extend the CFS settlement period from 21 days to 25 days. The members proposed to keep close the stock exchange closed for few days if their said proposals are not accepted.
The meeting is being held at the time when many KSE members are in critical condition due to continuous decline in the share prices and lack of liquidity while some of them are nearing a default position.
Sources said that an informal meeting of the KSE members was held here on Friday to discuss the prevailing situation of the stock market. The members discussed various proposals. The lack of liquidity was the main concern for them and they discussed various proposals as to how the situation could be eased.
Later these proposals were also discussed in a meeting between KSE Managing Director Adnan Afridi and National Clearing Company of Pakistan Limited (NCCPL) Chairman Ali Ansari. The Chairman KSE Kamran Mirza also joined the meeting later. According to some sources the CFS was rolled over for one day as borrowers failed to get funds from CFS market on Friday. All the Friday's trading will be merged into the Monday's trading and the settlement will be held on Tuesday.
Prevailing uncertainty and rising lending rates forced the investors to stay on the fences on Friday and the benchmark KSE-100 index remained unchanged at 9,181.35 points level. The prevailing economic conditions coupled with increased CFS rates did not allow the market participants to take fresh positions, analysts said, adding that lack of liquidity remained the main reason behind the dull activity at the share market.
The ready market volumes slightly increased to 1.833 million shares as compared to 1.792 million shares traded a day earlier. The overall market capitalisation declined by Rs 4 billion to Rs 2.841 trillion. Out of the total 70 scrips traded on Friday, 12 closed in positive territory, 10 in negative while 48 remained unchanged.
Nimir Resins was the overall volume leader with 0.618 million shares however it closed at Rs 5.30 without any change. NIB Bank also remained unchanged at Rs 8.45 with 0.268 million shares. Southern Electric gained Re. 0.02 to close at Rs 3.92 with 0.2 million shares. Sitara Energy increased by Re. 0.25 to close at Rs 22.30 with 0.139 million shares. UDL Mod closed at Rs 4.33, up by Re. 0.13 with 0.102 million shares. KESC closed at Rs 3.80 without any change with 77,000 shares.
Gharibwal Cement gained Re. 0.49 to close at Rs 17.99 with 65,000 shares. Pak Elektron increased by Re. 0.45 to close at Rs 37.50 with 56,700 shares. UTP-Large Cap. lost Re. 0.09 to close at Rs 5.50 with 52,000 shares. D.S. Ind Ltd closed at Rs 14.85 without any change with 49,500 shares. National Foods and Shakarganj Mills were top gainers with Rs 3.82 and Re. 0.66 to close at Rs 80.35 and Rs 12.50 respectively while Pak Datacom and Stand Chart Mod were the worst losers with Re. 0.85 and Re. 0.68 to close at Rs 48.25 and Rs 10.50, respectively.
Ahsan Mehanti at Shehzad Chamdia Securities said that investors remained concerned over prevailing capital market crises mainly due to liquidity issues. Falling equity values in the international capital markets, economic crisis, declining rupee value, foreign selling, broker defaults and high lending rates remained chief concerns for the market participants, who opted to remain on sidelines.
Monday, August 18, 2008
Stock Markets Index Gained today
The resolutions passed by the provincial assemblies, seeking vote of confidence from President Pervez Musharraf and the coalition partners' preparation of framing charges to impeach the President kept the market under pressure during most of the trading days of the week under review.
Today after witnessing bearish trend during the last two consecutive weeks, the Karachi share market took upward trend in the outgoing week and the benchmark KSE-100 index once again close above 10,000 psychological level at 10,258.71 points with a modest gain of 3.5 percent or 349.26 points on week-on-week basis.
The parallel free float market capitalisation-based the KSE-30 index increased by 528.19 points on weekly basis and settled at 11,690.23 points level. Trading activity remained thin during the week as average daily volumes of ready market declined by 18 percent on weekly basis to 92.499 million shares. The average daily turnover of futures market increased by 3.9 percent on weekly basis to 15.982 million shares.
The overall market capitalization surged by Rs 102 billion on weekly basis to Rs 3.195 trillion. The market started under pressure on Monday, however, late buying mainly by local institutions supported the market to close in positive and the KSE-100 index increased by 262.41 points to close at 10,171.86 points level. The KSE-30 index gained 356.52 points and settled at 11,518.56 points level.
On Tuesday, the market witnessed heavy selling pressure due to investors concerns over the prevailing uncertainty on political front and the KSE-100 index lost 208.28 points to close at 9,963.58 points level. The KSE-30 index declined by 324.32 points and settled at 11,194.24 points level.
Bearish trend continued on Wednesday and the The KSE-100 index lost another 61.23 points to close at 9,902.35 points level, while the KSE-30 index declined by 16.36 points and settled at 11,177.88 points level. The market remained closed on Thursday on account of Independence Day. On Friday, the market took upward trend on the back of healthy interest by local institutions and foreign investors and the KSE-100 index increased by 356.36 points to close at 10,258.71 points level while the KSE-30 index gained 512.35 points and settled at 11,690.23 points level.
Umer Ayaz, an analyst at JS Global Capital Limited, said the equity market managed a positive closing this week with the KSE-100 Index gaining 349 points, however, the equity market is still down 27 percent to date in 2008 amid economic slowdown and political issues. The issue of impeachment of President Pervez Musharraf and late on report of President's resignation before impeachment continued to affect market sentiments. At the weekend, the market saw strong pull back mainly led by local buying and on Friday only the index was up by 3.6 percent amid hope that political dust will finally settle down.
The Lahore stock exchange recorded 4.3 percent increase amid mixed sentiments while the LSE-25 index gained 135.20 points to close at 3292.99 against 3157.20 of the last week. However, the transaction volume squeezed to 38.979 million shares as compared to previous week's volume of 42.207 million shares.
The resolutions passed by the provincial assemblies, seeking vote of confidence from President Pervez Musharraf and the coalition partners' preparation of framing charges to impeach the President kept the market under pressure during most of the trading days of the week under review.
Of four trading days of the week, the market showed recovery on first and last day while it failed to sustain during two trading sessions on Tuesday and Wednesday. The market on Monday managed a gain of over 102 points with ascending transaction volume of 14,274,900 shares because of aggressive buying in selective scrips. The MCB Bank, National Bank, United Bank, NIB Bank, Bank Alfalah, and the oil and energy sector shares; Attock Refinery, PSO, OGDC, PPL and Mari Gas in addition to Adamjee Insurance, and Engro Chemical attracted aggressive buying. A number of banking and oil sectors' shares had to face upper cap because of the rapid increase in their value that kept the market into green zone during the day's trading.
The market rise was attributed to the potential investors and the institutions that stayed on buying course to make fresh entries. In addition to the global trend, the maintenance of Pakistan rating at 'B' by the Moody's Investors Service remained the source of encouragement for the investors. The rebound in the oil prices at the international market helped the oil sector's improvement in the local bourses, the experts opined.
However, the market could not sustain and shed 98.55 points with low trading activity on Tuesday and thus lost momentum it gained on the first day. The selling pressure on account of profit-taking was the main factor that dragged the market into red zone. The investors, keeping in view the prevailing uncertain political situation, preferred offloading their holdings and booked the available margin.
The investors were scared of the political scenario. They believed that either the President can succumb to impeachment by the coalition government or he might use powers under section 58(2)b to dissolve the assemblies and both the actions were considered as negative by the investors, the experts said, adding that because of this fear, the small investors did not take positions and stayed away.
On Wednesday, the market remained under the grip of depressed sentiments that forced the market closure in red zone amid panic selling. Though, the index was marginally declined, the increasing volume reflected lack of interest on the part of investors, who continued getting out of the market to avert more declines.
One of the major factors that could be instrumental in market recovery in future is yearly June ending and the second quarters' financial result of the corporate sector. The experts foresee consolidation of about 2000 points at the present level and termed present period as best time for the investors to enter the market. The buying at the present level can yield a good amount of margin to the investors, the experts opined.
There were four trading sessions during the week under review because of the holiday on account of Independence Day. When market opened on Friday, the short covering by the investors pushed the index up by over 150 points. The oil and banking sectors performed well to lead the market upward on the last trading day of the week under review. The experts attributed the bearish rally to financial reports released by the companies during the week.
The market pundits in their opinion consider the next week very crucial for the stock market as well as the country. According to them, the political situation would commence moving towards normalisation, if the President resigns during next week as reported in national and international press.
They were of the view that the political uncertainty should not continue further because in its consequence, the stock business and the local currency remained under severe pressure. As soon as the political issues were settled, not only the stock market, but also the rupee would start improving and regaining strength, the experts said.
Today after witnessing bearish trend during the last two consecutive weeks, the Karachi share market took upward trend in the outgoing week and the benchmark KSE-100 index once again close above 10,000 psychological level at 10,258.71 points with a modest gain of 3.5 percent or 349.26 points on week-on-week basis.
The parallel free float market capitalisation-based the KSE-30 index increased by 528.19 points on weekly basis and settled at 11,690.23 points level. Trading activity remained thin during the week as average daily volumes of ready market declined by 18 percent on weekly basis to 92.499 million shares. The average daily turnover of futures market increased by 3.9 percent on weekly basis to 15.982 million shares.
The overall market capitalization surged by Rs 102 billion on weekly basis to Rs 3.195 trillion. The market started under pressure on Monday, however, late buying mainly by local institutions supported the market to close in positive and the KSE-100 index increased by 262.41 points to close at 10,171.86 points level. The KSE-30 index gained 356.52 points and settled at 11,518.56 points level.
On Tuesday, the market witnessed heavy selling pressure due to investors concerns over the prevailing uncertainty on political front and the KSE-100 index lost 208.28 points to close at 9,963.58 points level. The KSE-30 index declined by 324.32 points and settled at 11,194.24 points level.
Bearish trend continued on Wednesday and the The KSE-100 index lost another 61.23 points to close at 9,902.35 points level, while the KSE-30 index declined by 16.36 points and settled at 11,177.88 points level. The market remained closed on Thursday on account of Independence Day. On Friday, the market took upward trend on the back of healthy interest by local institutions and foreign investors and the KSE-100 index increased by 356.36 points to close at 10,258.71 points level while the KSE-30 index gained 512.35 points and settled at 11,690.23 points level.
Umer Ayaz, an analyst at JS Global Capital Limited, said the equity market managed a positive closing this week with the KSE-100 Index gaining 349 points, however, the equity market is still down 27 percent to date in 2008 amid economic slowdown and political issues. The issue of impeachment of President Pervez Musharraf and late on report of President's resignation before impeachment continued to affect market sentiments. At the weekend, the market saw strong pull back mainly led by local buying and on Friday only the index was up by 3.6 percent amid hope that political dust will finally settle down.
The Lahore stock exchange recorded 4.3 percent increase amid mixed sentiments while the LSE-25 index gained 135.20 points to close at 3292.99 against 3157.20 of the last week. However, the transaction volume squeezed to 38.979 million shares as compared to previous week's volume of 42.207 million shares.
The resolutions passed by the provincial assemblies, seeking vote of confidence from President Pervez Musharraf and the coalition partners' preparation of framing charges to impeach the President kept the market under pressure during most of the trading days of the week under review.
Of four trading days of the week, the market showed recovery on first and last day while it failed to sustain during two trading sessions on Tuesday and Wednesday. The market on Monday managed a gain of over 102 points with ascending transaction volume of 14,274,900 shares because of aggressive buying in selective scrips. The MCB Bank, National Bank, United Bank, NIB Bank, Bank Alfalah, and the oil and energy sector shares; Attock Refinery, PSO, OGDC, PPL and Mari Gas in addition to Adamjee Insurance, and Engro Chemical attracted aggressive buying. A number of banking and oil sectors' shares had to face upper cap because of the rapid increase in their value that kept the market into green zone during the day's trading.
The market rise was attributed to the potential investors and the institutions that stayed on buying course to make fresh entries. In addition to the global trend, the maintenance of Pakistan rating at 'B' by the Moody's Investors Service remained the source of encouragement for the investors. The rebound in the oil prices at the international market helped the oil sector's improvement in the local bourses, the experts opined.
However, the market could not sustain and shed 98.55 points with low trading activity on Tuesday and thus lost momentum it gained on the first day. The selling pressure on account of profit-taking was the main factor that dragged the market into red zone. The investors, keeping in view the prevailing uncertain political situation, preferred offloading their holdings and booked the available margin.
The investors were scared of the political scenario. They believed that either the President can succumb to impeachment by the coalition government or he might use powers under section 58(2)b to dissolve the assemblies and both the actions were considered as negative by the investors, the experts said, adding that because of this fear, the small investors did not take positions and stayed away.
On Wednesday, the market remained under the grip of depressed sentiments that forced the market closure in red zone amid panic selling. Though, the index was marginally declined, the increasing volume reflected lack of interest on the part of investors, who continued getting out of the market to avert more declines.
One of the major factors that could be instrumental in market recovery in future is yearly June ending and the second quarters' financial result of the corporate sector. The experts foresee consolidation of about 2000 points at the present level and termed present period as best time for the investors to enter the market. The buying at the present level can yield a good amount of margin to the investors, the experts opined.
There were four trading sessions during the week under review because of the holiday on account of Independence Day. When market opened on Friday, the short covering by the investors pushed the index up by over 150 points. The oil and banking sectors performed well to lead the market upward on the last trading day of the week under review. The experts attributed the bearish rally to financial reports released by the companies during the week.
The market pundits in their opinion consider the next week very crucial for the stock market as well as the country. According to them, the political situation would commence moving towards normalisation, if the President resigns during next week as reported in national and international press.
They were of the view that the political uncertainty should not continue further because in its consequence, the stock business and the local currency remained under severe pressure. As soon as the political issues were settled, not only the stock market, but also the rupee would start improving and regaining strength, the experts said.
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