Stock Exchange Pakistan

Lotte Pakistan PTA Ltd – Onlookers comment|CY10E P/E 2.8x

admin — Fri, 02 Jul 2010 15:13:26 +0000

Expansion or no expansion….have a look at host of issues Custom duty tariff (demand and supply dynamics mitigate withdrawal of ‘compensatory support’ SRO issue : PTA is subject to a compensatory support SRO of Oct 7, 2008 based protection of about 7.5%.Currently government is reviewing SRO to withdraw or reduce it. Just in case if it is withdrawn then it may have some negative impact on LOTPTA’s profitability as per few market analysts given some lessening margins; we do not hold this view given demand supply situation especially when product is now having more demand as against preceding year. We

see LOTPTA may pass on any adverse impact to the market due to the fact that it has the sole advantage of small lead time as against imported PTA.

Previously,p charge of 7.5% is built in the price quoted to suppliers and this reimbursed to PSF manufacturer by GOP but elimination/reduction shall initially

increase the cost of PTA to PSF manufacturers who will be compelled to buy PTA given hike in local cotton lint prices. Patterns of PTA consumption & Issues related to DSFL : PTA is used by PSF manufacturers but every now and then PSF manufacturers are facing difficulties with their operations like one of the biggest consumers of PTA , Dewan Salman (DSFL) faces host of issues but currently industry demands stands at 750Ktons wherein LOTPTA produces around 500k tons.

Correlation with cotton prices: Cotton prices peaked around Rs 7,000/maund due to robust demand of yarn internationally, specifically China. Similarly PSF margins viz. PTA margins have also increased (PTA margins improved to the extent of USD 200 – USD 280/ton range in this period thus spelling some profitability for LOTPTA especially 4Q-CY09). In Pakistan, just like elsewhere globally, PSF is considered a substitute for cotton and also called cheap made cotton or man-made cotton and its demand have finally picked up to a certain degree after bout of underperformance since FY06 – 07 when naphtha based polymer resin prices had started picking up at the pretext of hike in oil prices.

Production capacities coming online & Global economic recovery: Globally PTA expansions are coming on-line and with

global economic recovery at low pace due to Greece crisis PTA margins has dip in this quarter but currently hovering above

US $210/ton.

Perceived valuation: We have assumed primary margins to remain in the vicinity of US$ 225/ton – US$ 270/ton during the

course of this year. Based on our assumption, we see earning propensity to remain robust for LOTPTA at the close of CY10.

Our avg. case scenario spells P/E base of 2.8x.

Company has some cash balance of around Rs 7bn at the end of 1Q-CY10. Thecompany is also sitting at a cheap EV/EBITDA of nearly 1x and relatively less geared.As for CY10 net earnings, LOTPTA’s financial charges are toned down; however,company is still geared apparently given new parent company namely KP ChemicalsGroup loan. This is some indication that the group plans to invest in enhancing PTAproduction. At present, LOTPTA is still a sole PTA producer (product supplied to PSFmanufacturers) and its sales remained all booked as being claimed by the companydespite our hunch of problems faced by one big PSF manufacturer.Despite incidence of cash balance, company’s accumulated losses stands at Rs 7.5bnbut its gearing is almost 40%, therefore, company has the propensity to leverage itsoperation for expansion or also think of pursuing diversification to hedge overallbusiness model of PTA supplies.Expansion or no expansion….have a look at host of issuesCustom duty tariff (demand and supply dynamics mitigate withdrawal of‘compensatory support’ SRO issue : PTA is subject to a compensatory support SROof Oct 7, 2008 based protection of about 7.5%.Currently government is reviewingSRO to withdraw or reduce it. Just in case if it is withdrawn then it may have somenegative impact on LOTPTA’s profitability as per few market analysts given somelessening margins; we do not hold this view given demand supply situationespecially when product is now having more demand as against preceding year. Wesee LOTPTA may pass on any adverse impact to the market due to the fact that ithas the sole advantage of small lead time as against imported PTA.Previously,p charge of 7.5% is built in the price quoted to suppliers andthisreimbursed to PSF manufacturer by GOP but elimination/reduction shall initiallyincrease the cost of PTA to PSF manufacturers who will be compelled to buy PTAgiven hike in local cotton lint prices.Patterns of PTA consumption & Issues related to DSFL : PTA is used by PSFmanufacturers but every now and then PSF manufacturers are facing difficultieswith their operations like one of the biggest consumers of PTA , Dewan Salman(DSFL) faces host of issues but currently industry demands stands at 750Ktonswherein LOTPTA produces around 500k tons.Correlation with cotton prices: Cotton prices peaked around Rs 7,000/maund dueto robust demand of yarn internationally, specifically China. Similarly PSF marginsviz. PTA margins have also increased (PTA margins improved to the extent of USD200 – USD 280/ton range in this period thus spelling some profitability for LOTPTA
especially 4Q-CY09). In Pakistan, just like elsewhere globally, PSF is considered a substitute for cotton and also called cheapmade cotton or man-made cotton and its demand have finally picked up to a certain degree after bout ofunderperformance since FY06 – 07 when naphtha based polymer resin prices had started picking up at the pretext of hikein oil prices.Production capacities coming online & Global economic recovery: Globally PTA expansions are coming on-line and withglobal economic recovery at low pace due to Greece crisis PTA margins has dip in this quarter but currently hovering aboveUS $210/ton.Perceived valuation: We have assumed primary margins to remain in the vicinity of US$ 225/ton – US$ 270/ton during thecourse of this year. Based on our assumption, we see earning propensity to remain robust for LOTPTA at the close of CY10.Our avg. case scenario spells P/E base of 2.8x.

KSE 5 Years Progress Report

admin — Wed, 16 Jun 2010 00:34:26 +0000

In million except companies, index and bonds data

	Upto 30-12-2006	Upto 29-12-2007	Upto 31-12-2008	Upto 31-12-2009	Upto 14-06-2010
Total No. of Listed Companies	652	654	653	651	653
Total Listed Capital – Rs.	519,270.17	671,255.82	750,477.55	814,478.74	910,465.75
Total Market Capitalisation – Rs.	2,771,113.94	4,329,909.79	1,858,698.90	2,705,879.83	2,598,659.76
KSE-100TM Index	10040.50	14075.83	5865.01	9386.92	9229.60
KSE-30TM Index	12521.54	16717.10	5485.33	9849.92	9134.63
KSE All Share Index	6770.06	9956.76	4400.76	6665.55	6475.49
New Companies Listed during the year	9	14	10	4	6
Listed Capital of New Companies – Rs.	14,789.76	57,239.92	15,312.12	8,755.73	32,538.44
New Debt Instruments Listed during the year	3	3	7	1	4
Listed Capital of New Debt Instruments – Rs.	3,400.00	6,500.00	26,500.00	3,000.00	5,650.18
Average Daily Turnover – Shares in million	260.69	268.23	146.55	179.88	165.81
Average value of daily turnover – Rs.	31,610.71	25,262.97	14,228.35	7,450.75	5,597.38
Average Daily Turnover (FutureTM) YTD	82.68	61.69	30.76	1.03	5.76
Average Value of Daily Turnover – YTD	13,587.63	9,077.61	5,229.97	89.66	440.11
Foreign Investment in Securities Market
Inflow – Rs	-	-	-	-	-
Outflow – Rs	-	-	-	-	-
Net Inflow/(Outflow) – Rs	-	-	-	-	-

YTD = Year to date

The KSE-100TM Index was introduced in November, 1991 and was recomposed in November 1994.
The KSE-All Share Index was introduced in September, 1995.
Listed companies reflected in the relevant year have been stated after 5 companies delisted in year 2000, 12 companies in 2001 and 24 companies in 2002, 8 in 2003, 44 in 2004, 15 in 2005 and 1 in 2006 (total 109) and merger of 1 company in 2000, 7 companies in 2001, 16 companies in 2002, 8 in 2003, 12 in 2004, 4 in 2005 and 12 in 2006 (total 61) and addition of 1 companies by splitting/ bifurcation in year 2001. In year 2004 preference shares of Chenab Limited was listed and company offered ordinary shares in year 2005.

Shariah Compliant Stocks at KSE

admin — Tue, 15 Jun 2010 23:56:51 +0000

Shariah Compliant Stocks at KSE based on the review period ending December 09 (in alphabetical order

KSE 100

Most recognized index of the KSE
Representation from all sectors of the KSE and includes the largest companies on the basis of their market capitalization
Represents over 85% of the market capitalization of the Exchange.

Download KSE – 100 Index Brochure
KSE 30

Introduced in 2006
Based on the “Free Float Methodology”
Includes only the top 30 most liquid companies listed on the KSE.

Download KSE – 30 Index Brochure

ALL SHARE

Consists of all the companies listed on the KSE.

KMI-30

Tracks the 30 most liquid Shariah-compliant companies listed at KSE.
Introduced in September 2008, KMI comprises of 30 Companies that qualify the KMI Shariah screening criteria and are weighted by float adjusted market capitalization.
12% cap on weights of individual securities.
Rebalanced biannually.
Shariah Supervisory Board of Meezan Bank chaired by eminent Shariah scholar Justice (Retd.) Mufti Muhammad Taqi Usmani.

Download KMI – 30 Index Brochure

Shariah Screening Criteria

Shariah compliance of stocks is done under the guidance of qualified and reputed Shariah experts. For stocks to be “Shariah compliant”, it must meet ALL the six key tests given below.

Business of the Investee Company Core business of the company must be halal and in line with the dictates of Shariah. Hence, investment in securities of any company dealing in conventional banking, conventional insurance, alcoholic drinks, tobacco, pork production, arms manufacturing, pornography or related activities is not permissible.
Debt to Total Assets Debt to Asset ratio should be less than 40%. Debt, in this case, is classified as any interest bearing debts. Zero coupon bonds and preference shares are, both, by definition, part of debt.
Non-compliant Investments to Total Assets The ratio of non compliant investments to total assets should be less than 33%. Investment in any non-compliant security shall be included for the calculation of this ratio.
Non-complaint Income to Total revenue – Purification of Non-compliant income The ratio of non compliant income to total revenue should be less than 5%. Total revenue includes Gross revenue plus any other income earned by the company. This amount is to be cleansed out as charity on a pro rata ratio of dividends issued by the company.
Illiquid Assets to Total Assets The ratio of illiquid assets to total assets should be at least 20%. Illiquid asset, here, is defined as any asset that that Shariah permits to be traded at value other than the par.
Net Liquid Assets to Share Price The market price per share should be greater than the net liquid assets per share calculated as: (Total Assets – Illiquid Assets – Total Liabilities) divided by number of shares.

Courtesy of Al-Meezan Investments Ltd.

“Shariah Compliant Stocks at KSE based on the review period ending December 09 (in alphabetical order)”
S. No	Name	Symbol
1	Abbott Laboratories	ABOT
2	Ados Pakistan	ADOS
3	Agriautos Industries	AGIL
4	AL-Ghazi Tractors	AGTL
5	AL-Noor Suger	ALNRS
6	Artistic Denim Mills	ADMM
7	Atlas Battery	ATBA
8	Atlas Honda	ATLH
9	Attock Cement	ACPL
10	Attock Petroleum	APL
11	Attock Refinery	ATRL
12	Balochistan Wheels	BWHL
13	Bankislami Pakistan	BIPL
14	Bannu Woollen	BNWM
15	Bata Pakistan	BATA
16	BOC Pakistan	BOC
17	Bolan Casting	BCL
18	Clariant Pak	CPL
19	Clover Pakistan	CLOV
20	Colgate Palmolive	COLG
21	Crescent Steel	CSAP
22	D.G.K.Cement	DGKC
23	Dadabhoy Cement	DBCI
24	Dewan Farooque Sp.	DFSM
25	Dynea Pakistan	DYNO
26	Fauji Fert Bin	FFBL
27	Fauji Fertilizer	FFC
28	Ferozsons (Lab)	FEROZ
29	Flying Cement	FLYNG
30	Ghandhara Industries	GHNI
31	Ghandhara Nissan	GHNL
32	Ghani Automobile	GAIL
33	Ghani Glass Limited	GHGL
34	GlaxoSmithKline	GLAXO
35	Grays of Cambridge	GRAYS
36	Habib Sugar Mills	HABSM
37	Habib-ADM	HAL
38	Hinopak Motor	HINO
39	Honda Atlas Cars	HCAR
40	Huffaz Pipe	HSPI
41	IBL HealthCare Ltd	IBLHL
42	ICI Pakistan	ICI
43	Indus Motor Company	INDU
44	Johnson & Philips	JOPP
45	K.E.S.C.	KESC
46	K.S.B.Pumps	KSBP
47	Kohat Cement	KOHC
48	Kohinoor Energy	KOHE
49	Kohinoor Power	KOHP
50	Lafarge Pakistan	LPCL
51	Lotte Pakistan	LOTPTA
52	Lucky Cement	LUCK
53	Maple Leaf Cement	MLCF
54	Mari Gas	MARI
55	Meezan Bank	MEBL
56	Mehran Sugar	MRNS
57	Millat Tractors	MTL
58	Modarba Al Mali	MODAM
59	National Foods	NATF
60	National Refinery	NRL
61	Nishat (Chunian)	NCL
62	Noon Pak	NOPK
63	Noon Sugar Mills	NONS
64	Oil & Gas Development Company	OGDC
65	P.S.O.	PSO
66	P.T.C.L.A	PTC
67	Packages Limited	PKGS
68	Pak Datacom	PAKD
69	Pak Elektron	PAEL
70	Pak Engineering	PECO
71	Pak Oilfields	POL
72	Pak Pap.Products	PPP
73	Pak Petroleum Ltd.	PPL
74	Pak Refinery	PRL
75	Pak Suzuki Motor	PSMC
76	Pak Synthetics	PSYL
77	Ravi Textile	RAVT
78	Sanghar Sugar	SANSM
79	Sazgar Engineering	SAZEW
80	Searle Pakistan	SEARL
81	Service Industries	SRVI
82	Shell Gas LPG	SGLL
83	Shell Pakistan	SHEL
84	Siemens Pakistan	SIEM
85	Sitara Chemical	SITC
86	Sitara Energy	SEL
87	Sitara Peroxide	SPL
88	Sui North Gas	SNGP
89	Sui South Gas	SSGC
90	Tandlianwala Sugar	TSML
91	Tariq Glass	TGL
92	Telecard	TELE
93	Thal Ltd	THALL
94	Thatta Cement	THCCL
95	Tri-Pack Films	TRIPF
96	UniLever Pakistan	ULEVER
97	United Distributors	UDPL
98	Wah-Noble	WAHN
99	Wyeth Pak Ltd.	WYETH
100	ZIL Limited	ZIL
These companies have been screened from the list of securities eligible for entry in KMI-30 as at December 31, 2009. For detailed KMI eligibility and selection criteria please see Sections 1.2 and 1.3 of the KMI Index brochure.
*Courtesy of Al-Meezan Investments Ltd. Shariah Advisors*

G7 NATIONS PLEDGE DEBT RELIEF FOR QUAKE-HIT HAITI

admin — Mon, 08 Feb 2010 03:35:28 +0000

OTTAWA: The world’’s leading industrialised nations have pledged to write off the debts that Haiti owes them, following a devastating earthquake last month. Canada’’s finance minister announced at a summit in Iqaluit, northern Canada that Group of Seven countries planned to cancel Haiti’’s bilateral debts. Jim Flaherty said he would encourage international lenders to do the same. Some $1.2bn (£800m) of Haiti’’s debts to countries and international lending bodies has already been cancelled. “We are committed in the G7 to the forgiveness of debt, in fact all bilateral debt has been forgiven by G7 countries vis-à-vis Haiti,” Flaherty said at the end of the two day gathering of finance ministers. “The debt to multilateral institutions should be forgiven, and we will work with these institutions and other partners to make this happen as soon as possible,” he added. At least one million people are in need of aid in Haiti after the magnitude 7.0 earthquake, which struck in mid-January, killing more than 200,000 people. The G7 group – which includes Canada, the US, UK, France, Germany, Italy and Japan – has been under pressure to help Haiti recover since the 12 January quake by cancelling the money owed by Haiti. Haiti was rated as the poorest nation in the western hemisphere even before the earthquake struck. Though exact figures are difficult to obtain, the exact amount owed bilaterally to G7 countries is believed to be quite small. Venezuela and Taiwan are Haiti’’s other biggest bilateral creditors. British Prime Minister Gordon Brown hailed the pledge, saying: “It must be right that a nation buried in rubble must not also be buried in debt”. “The UK has already cancelled all debts owed to it by Haiti and I strongly welcome today’’s G7 commitment to forgive Haiti’’s remaining multilateral debt,” he added. “We will work with others to make sure this is delivered.” On Friday, the US voiced support for the plan to extend international debt relief for Haiti. “The earthquake in Haiti was a catastrophic setback to the Haitian people who are now facing tremendous emergency humanitarian and reconstruction needs, and meeting Haiti’’s financing needs will require a massive multilateral effort,” said Treasury Secretary Timothy Geithner.

OIL PRICES WEAKEN AT END OF WEEK

admin — Mon, 08 Feb 2010 03:34:53 +0000

SINGAPORE: World oil prices fell in the wake of weaker-than-expected US jobs data and at the end of a volatile week for global financial markets. New York’’s main futures contract, light sweet crude for delivery in March, lost 34 cents to 72.80 dollars a barrel. London’’s Brent North Sea crude for March dropped 69 cents to 71.44 dollars per barrel. Oil had also fallen in earlier trade amid slumping equities and a stronger dollar caused by European debt fears. Crude futures had slumped nearly four dollars on Thursday, mirroring plunging global stock markets, as the dollar strengthened after a surprise rise in US initial weekly jobless and a deepening debt crisis in Europe. The euro bounced back above 1.37 dollars on Friday after the US jobs data, having earlier struck a near nine-month low at 1.3648 dollars as risk-averse investors moved into the safe-haven greenback. Earlier this week, oil prices had soared as equity markets put in strong performances and manufacturing data from the United States reassured nervous investors.

PAKISTANI CEMENT MAY GAIN MARKET IN INDIA

admin — Mon, 08 Feb 2010 03:34:12 +0000

KARACHI: Former Chairman of All Pakistan Cement Manufacturers Association Maj Gen (retd) Rahmat Khan said Pakistan can export 30 lakhs tonnes of cement from its land and sea routes to earn itself a foreign exchange worth 160 million dollars, Geo News reported Friday. Talking to Geo News, he said Pakistan exports at least 40,000 tonnes of cement to India by train from Wahga to Attari; while, at least 25,000 tonnes are exported by sea, adding if Pakistani trucks are allowed parking and moving 200 to 300 yards into India, then the cement exports could be raised to 200,000 tonnes. Pakistani cement is the best in world, which is used 3 to 4 percent less in comparison with the other cements, Rahmat said adding Indian traders are highly interested in importing Pakistani cement.

GLOBAL MARKETS ROUT HITS ASIA

admin — Mon, 08 Feb 2010 03:31:25 +0000

HONG KONG: Mounting fears about parlous government finances in Europe hammered stock markets across Asia on Friday following New York’’s worst finish since November. A global flight to safety lifted the dollar and depressed the euro, despite concern that US jobs data out later in the day would flag enduring weakness in the world’’s largest economy. “What we”re seeing is a wave of panic selling,” said Francis Lun, general manager of Fulbright Securities in Hong Kong, where the Hang Seng index tumbled below the key 20,000 level in early trade. “It’’s a reaction to crashing in European and US markets,” Lun said. The Hang Seng was down 589.67 points — 2.9 percent — at 19,751.97 shortly after opening. Singapore’’s Straits Times Index was down 2.09 percent or 57.35 points to 2,687.63. “With the selloff on Wall Street, traders should enter today’’s market with a good crash helmet,” CIMB analysts in Singapore said. In Tokyo, the Nikkei-225 index slumped 293.33 points or 2.83 percent to 10,062.65 by the lunch break despite a 0.15 percent rise in Toyota shares after the recall-plagued carmaker lifted its earnings forecast. Seoul’’s KOSPI dived 2.9 percent in the morning to 1,569.40. In Australia, the SP/ASX200 plunged 2.77 percent by noon to 4,493.8. “European debt concerns have strengthened the US dollar and this has stoked concerns that … risk aversion may heighten further,” Min Sang-Il of E*Trade Securities in South Korea told Dow Jones Newswires. The euro stood at 1.3704 dollars in early Asian trade, down from 1.3726 in late US trade Thursday. “It’’s very bad sentiment for the euro, it’’s a sell-off for the euro definitely,” said Lee Sue Ann, a treasury economist with Singapore’’s United Overseas Bank. The shockwaves across Asia came after Wall Street’’s Dow Jones index tumbled 268.37 points, or 2.61 percent, to end at 10,002.18, its lowest level since November, after a brief dip below 10,000. In advance of Friday’’s Labor Department survey of non-farm payrolls, weak data on US jobless claims combined with heightened fears of debt problems in European Union countries to drive investors away from equities. Market tensions intensified on jitters that crisis-hit EU members such as Spain and Portugal could be in for the same troubles as debt-ridden Greece. Stocks in Spain and Portugal were hammered, while London’’s benchmark FTSE 100 index plunged 2.17 percent to close at 5,139.31 points. In China the Shanghai Composite Index was down 1.81 percent at 2,941.00. “Jittery investors are now focused on the external factors, another whammy for the market after domestic credit tightening concerns were priced in during the recent correction,” Guotai Junan Securities analyst Ci Weixiang said. Banks led the decline after recent moves by Chinese authorities to rein in lending, while mining stocks were also down in line with lower commodity prices worldwide. Oil extended losses in Asian trade. New York’’s main contract, light sweet crude for March delivery, fell 23 cents to 72.91 dollars a barrel. Brent North Sea crude for March delivery was off 35 cents to 71.78 dollars. “The rise in US jobless claims generated concerns about the outlook for the US economy,” commodity analysts from the Commonwealth Bank of Australia said in a report. Data Thursday showed seasonally adjusted claims rose to 480,000 in the week ending January 30, up 8,000 from the previous week’’s upwardly revised 472,000. Most analysts expect Friday’’s bigger Labor Department report will show US unemployment held steady at 10 percent and the economy created a meagre 15,000 jobs, after a loss of 85,000 in December. Hong Kong gold opened at 1,064.00-1,065.00 US dollars an ounce, down from Thursday’’s close of 1,105.50-1,106.50.

US SEEKS ACCESS TO NUCLEAR PROGRAM OF PAKISTAN: JI

admin — Mon, 08 Feb 2010 03:28:31 +0000

LAHORE: Ameer Jamaat-e-Islami Syed Munawwar Hassan has said US agenda tops creation of uncertainty in Pakistan so that it should have access to Pakistan’s nuclear program. He said she also looks all set to get our nuclear program declared unsafe in order to let international community have control over it. Addressing the gathering of the students of Islami Jamiat-e-Tullaba here in Lahore, he said US is hatching conspiracy of Pakistan’s Islamic image and such plots are being netted, which will jeopardize Pakistan’s ability to defend itself. International community is trying to enforce such solution of Kashmir issues, which will neither be acceptable for the people of Kashmir nor for the people of Pakistan. The war on terrorism is being waged against Muslim Ummah and Islamic world, he mainatiend.

Pak enters largest deal of history to export machinery

admin — Sun, 23 Aug 2009 01:43:19 +0000

Pak enters largest deal to export machinery KARACHI: A plant is being exported under an agreement worth $50 million — the first largest in the history of Pakistan, Geo News reported Saturday.

Talking to Geo News, partner of Saudi al Kubra group, Majeed Pardesi said his Saudi partners were inclined on importing machinery from India; however, they preferred the import from Pakistan despite all the hurdles.

Pardesi said an upfront payment of $50 million has been made to Heavy Mechanical Complex in view of the prevalent situation in the country, adding the 80 percent work for the machinery export has been completed.

The other parts of the plant will soon be sent to Ethiopia, he added.

Hungary to give Pakistan high yield sunflower seed

admin — Fri, 10 Jul 2009 15:48:00 +0000

ISLAMABAD: Minister for Food and Agriculture Nazar Muhammad Gondal stressed the need for increasing cooperation between Pakistan and Hungary in Agriculture sector. The Minister was talking to Ambassador of Hungary Istav Darvasi who called on him here this after noon in his office. The Minister said that Hungary could provide Pakistan with high yield sunflower seed as Hungary produces sunflower crop at larger area with high yielding hybrid seed. The Minister said that exchange of experts experienced on oilseed; especially plant breeders, entomologist and agronomist can be very productive. Gondal said that Pakistan could provide quality fruits like mango, apple and orange to Hungary and it can become an attractive market for Pakistan. The Minister said that both countries have very cordial and friendly relations, which need to be further strengthened. The ambassador said that trade between two countries should be increased and socio-cultural ties should also be strengthened through exchange of writers, students and scholars.

Dollar closes at Rs82 first time since Oct 2008

admin — Fri, 10 Jul 2009 15:43:35 +0000

KARACHI: Dollar closed today at Rs82 in the Inter Bank for the first since October 17, 2008. According forex market dealers, dollar grew stronger against rupee during today’s trading. The rupee value declined due to increased demand of dollar for making payments of import bills, they said. In the open market dollar pegged at Rs82.10.

Azgard Nine to sell 24.99% stake in Pak-America Fertilizer

admin — Fri, 10 Jul 2009 15:41:45 +0000

KARACHI: Azgard Nine Company Limited has announced to sell 24.99 per cent of its stake in Pak American Fertilizers. According to sources Azgard Nine will use the proceeds from sale in retiring its debts.

China to invest in Pakistan Steel Mill

admin — Fri, 10 Jul 2009 15:31:38 +0000

Geo News: China Metallurgical Group Corporation (MCC) has shown its interest to invest 2.2 billion US Dollars for the expansion and revamping of Pakistan Steel Mills (PSM). A twelve member delegation of MCC headed by Ms Huan met here on Thursday with the Federal Minister for Industries and Production Mian Manzoor Ahmad Wattoo and discussed various proposals in detail. According to MCC, they will set up a new plant within 2 years as the first phase of the expansion project. The construction of the new plant will cost around 1.2 billion dollars and on completion it will be capable of producing 2 million tons of steel per annum. In the second phase the MCC will revamp and modernize the existing PSM plant. The second phase according to MCC will take another 2 years to complete and would cost around 1 billion dollars. They said that the revamping will raise PSM’s production capacity to 3 million tons per year which today stands at 1.1 million tons per years. The minister took keen interest in MCC’s proposals and appreciated Ms Huan and her team for taking interest in the PSM project. He assured Ms Huan that he and his team will deeply study their proposals and would take a final decision on this project very soon. The MCC which already has conducted technical investigation of the PSM in 1992 and has produced a 500 page report on the expansion of PSM in 2005 is China’s leading multidisciplinary multinational company. The MCC is known for its experience in scientific research, industrial engineering practice and international trading capabilities. According to MCC website, the group is a major driving force behind the growth of China’s steel industry, and a reputable contractor of a number of key projects both at home and abroad.

Karachi Stock Market Forecast for July 6th – 10th, 2009

admin — Mon, 06 Jul 2009 15:35:11 +0000

Technical Forecast for July 6th – 10th, 2009

All glory comes after daring action

You got your profit – Wait to buy back

Think Bullish and Stay Bullish

Khalid Saifuddin

Sunday July 5th, 2009

Hi Folks:

I hope you are already off loaded most of your open positions on Friday, as I already sent profit taking call on Friday. It is good to offload more positions on Monday high. Finally market achieved Bullish trend, though we are going through War and worst economic figures BUT. Market still looks attractive; I rather call it amazing performance of the market under current scenario. Here we must think of correction, which is already started on Friday. Correction is not related to bears, it is always healthier sign for any trend.

In my last week technical views, I informed everybody about the first 2 days of the week, and confirmed the bullish trend. If you look at the market it almost did the same what I was expecting. Now I like everybody to calculate your achievement in this week.

WOW…..its more then what we expect right guys? For your ease below I try to give you the achievements on the recommended scrips.

Now we are pretty close to the upper limit of the market there are two possibilities either market will start performing range bond activities or follow the current bullish trend after the ongoing correction. Here traders must follow the cycle movement of the market to get more profit.

We have seen some immense buying pressure in foreign investor portfolio, earlier we noticed the week holding was USD$16,297,427 then this week the foreign portfolio added USD$9,740,632 this comes to the total of USD$ 26,038,059. This alone is enough to convince the local investors/traders for continuation of BULLISH trend.

I am recommending buy on certain levels and selling in few scrips right now. I do not see any reason for Panic. The preferred sectors will be Banking, Cement, Fertilizer, Automobile and Oil. Selling Refinery will be good decision.

Last week achievements on Key Levels
Total Volume this week 677,894,384 Volume Gain (Lost) 132,843,764
Difference of high and low 416 Market Gain (Lost) 308.24

Last week achievements on Scrips

Bullish recommendation proved 95.45% true
Friday Cls Friday.Cls Gain Achievement Trend
June 26, 09 July, 3rd (Lost) Percentage
ATRL 126.65 144.36 17.71 13.98% Bullish
ANL 22.69 25.47 2.78 12.25% Bullish
PSO 207.17 227.01 19.84 9.58% Bullish
NBP 66.12 71.35 5.23 7.91% Bullish
OGDC 78.12 83.91 5.79 7.41% Bullish
POL 146.79 155.47 8.68 5.91% Bullish
FFC 87.59 92.68 5.09 5.81% Bullish
LUCK 60.64 64.03 3.39 5.59% Bullish
BOP 10.65 11.2 0.55 5.16% Bullish
JSCL 24.01 25.24 1.23 5.12% Bullish
MCB 155.03 162.04 7.01 4.52% Bullish
AICL 85.11 88.66 3.55 4.17% Bullish
ENGRO 129.85 134.7 4.85 3.74% Bullish
PPL 188.50 194.82 6.32 3.35% Bullish
FFBL 17.50 18.07 0.57 3.26% Bullish
NIB 4.82 4.96 0.14 2.90% Bullish
AHSL 28.27 29.09 0.82 2.90% Bullish
FCCL 6.71 6.9 0.19 2.83% Bullish
BAFL 10.71 10.88 0.17 1.59% Bullish
UBL 40.03 40.51 0.48 1.20% Bullish
NETSOL 18.08 18.1 0.02 0.11% Bullish
DGKC 30.97 29.58 -1.39 -4.49% Bearish

Total Scrip 22 Bullish 21 Bearish 1

Disclaimer:

This commentary is not a recommendation to buy or sell, but rather a guideline to interpreting the specified indicators. This information should only be used by investors who are aware of the risk inherent in securities trading. We accept no liability whatsoever for any loss arising from any use of these levels. However the author DOES NOT GUARANTEES the accuracy of information provided on this report and is NOT RESPONSIBLE FOR ANY ERRORS AND/OR OMISSIONS.

KSE capitalization up 4%

admin — Sat, 04 Jul 2009 22:34:52 +0000

KARACHI: Ary Business reported The market capitalization of Karachi Stock Exchange (KSE) recorded 24 percent surge during this week. The KSE capitalization rose to Rs2.205 trillion compared to Rs2.1 trillion last week. The foreign investment this week stood at 9.7 million dollars which was 5.9 million dollars in the previous week.