Ousting of nominee chairman of KSE board

KARACHI: The Securities and Exchange Commission of Pakistan (SECP) has made a move to protect its nominated chairman of the KSE board, as the commission has expressed concern over the convention of extraordinary general meeting (EOGM) on November 4 with a sole agenda of amending Articles of Association and oust SECP-nominated director as chairman of the board.

However, the KSE directors and members confirmed that the extraordinary general meeting would be held as per the schedule and with the same agenda.

Rumble in the bourse

KARACHI: Nominee directors of the Karachi Stock Exchange (KSE) met with the chairman of the Securities and Exchange Commission of Pakistan (SECP) on Monday to discuss possible recourses to differences amongst the members of the board of directors of the exchange. The meeting was also attended by other high-ranking officials of the SECP along with nominee directors:

Farrukh Junaidi, KSE Chairman Zubyr Soomro, Farhan Malik and Adnan Afridi.

Sources privy to the meeting revealed that nominee directors expressed concerns regarding the "weakening of governance at KSE". However the regulator decided not to issue an official press release regarding the meeting. When contacted, SECP's spokesperson responded by saying, "SECP has no comment on the KSE issue". However The Express Tribune has also learnt that participants of the meeting will convene once again today (Tuesday) morning to continue deliberations.

KSE investors to focus on meetings with IMF

KARACHI: Focus of investors at the Karachi Stock Exchange (KSE) will shift to the meetings between the International Monetary Fund (IMF) and Pakistani officials, since most large companies have already announced their results, dealers said.

“As the result season is coming to its close, investors will look towards new triggers, particularly on economic and political front,” said Saeed Khalid, an analyst at Invest Capital. “Moreover, the upcoming Eid season is expected to drain the investment from the market, but foreigners’ interest will play a key role for the market to sustain the current levels.”

Increase in floods loss estimates drags KSE down

KARACHI: Prices at the Karachi share market dropped on Thursday as investors opted to book profits in leading scrips after World Bank and Asian Development Bank raised flood loss estimates, dealers said.

“Intense profit-taking was witnessed at the local bourse as World Bank and Asian Development Bank raised flood loss estimates to $16 billion,” said Ahsan Mehanti, a director at Arif Habib Investments.

The KSE 100-share index lost 69.17 points, or 0.65 percent, to close at 10,634.99 points. The KSE 30-share index shed 67.76 points, or 0.66 percent, to end at 10,201.18 points.
Shares of 407 companies were traded, out of which 176 advanced, 209 declined, while 22 remained unchanged.

KSE AGM lashes out at Afridi-led management

KARACHI: The management of Karachi Stock Exchange (KSE) came under fire at the annual general meeting (AGM) on Thursday over its exceedingly high remunerations, perks and privileges and poor performance.

Members discussed in detail the remuneration packages of the management led by Adnan Afridi, the managing director. A member said that traditionally management avoided taking such perks and privileges in fragile economic situation, even if funds were available.

He said that the case was different in KSE where the management took heavy remuneration, allowances and bonuses during the last two years, although revenue had been falling.

Strong results anticipation pushes KSE up

KARACHI: The Karachi share market surged on Wednesday in anticipation of strong financial results by major companies, dealers said. “Positive activity was witnessed as investors await major earnings announcements this week,” said Ahsan Mehanti, a director at Arif Habib Investments.

The KSE 100-share index gained 46.01 points, or 0.43 percent, to close at 10,704.16. The KSE 30-share index rose 39.14 points, or 0.38 percent, to end at 10,178.53. Shares of 370 companies were traded, out of which 214 advanced, 138 declined, while 18 remained unchanged.

Stocks seen range-bound next week

KARACHI: The Karachi share market would remain range-bound next week as there will be fewer developments to keep the index in positive territory, analysts said on Saturday.

“With the commencement of the upcoming quarterly results season, the market will be looking for positive news backed by better-than-expected corporate earnings,” said Saeed Khalid, an analyst at Invest Capital.
“However, the rift between the government and the judiciary is expected to play a significant role in keeping the market sustains the current levels.”

Foreigners’ holding at KSE hits 26.5pc

KARACHI: The foreign investors’ holding in the local bourse has reached 26.5 per cent of its free float, which is the highest level since July 2008, according to the data issued by the National Clearing Company Pakistan Limited (NCCPL) on Tuesday.

Volumes plunge by 39 per cent

KARACHI: The Karachi share market, which witnessed dull trading during the week ended on March 23 with average daily volumes plunging by 39 per cent, is likely to remain under pressure next week as even results of blue-chip companies failed to generate excitement due to various economic and tax-related issues, dealers said.

“With some key corporate announcements, including Oil and Gas Development Company and Pakistan Petroleum Limited due next week, we do not foresee any major activity unless foreign funds come back into the market,” said Sara Shahid, an analyst at Elixir Securities.

KSE under pressure on uncertainty regarding CGT rate

KARACHI: Despite announcement of healthy corporate results on Wednesday, the market witnessed depressed activity amid low volumes because of the uncertainty over agreed mechanism of the capital gains tax on shares trading in the coming budget.

“The reports regarding likely revision of capital gains tax rate on stocks, already agreed with the Finance Ministry, put pressure on the market,” said Khurram Schehzad, head of research at Invest Capital.

SECP wants mutual funds exempted from workers fund

KARACHI: The Securities and Exchange Commission of Pakistan (SECP) has called upon the Finance Ministry to exempt pooled-investment and open-ended mutual funds from contribution to the Workers Welfare Fund.

In its recommendations for the Finance Bill 2010, the commission said mutual funds, provident funds, approved pension funds, gratuity funds and superannuation funds are structured as trust in compliance with the commission’s regulatory framework and income tax rules.

SECP detects 22 cases of insider trading, other irregularities

KARACHI: The Securities Market Division of the Securities & Exchange Commission of Pakistan (SECP) has detected 22 cases of violation of laws, including insider trading and imposed penalties on the stock exchange members and other market stakeholders, said a statement issued on Monday.

During the last one year, the Securities Market Division had detected 22 cases of insider trading, price manipulation, short- and blank-selling, wash trades, broker misconduct and non-compliance of the listing regulations, it said.

SECP to conduct pre-ballot scrutiny of all ‘issue of shares’

The Securities and Exchange Commission of Pakistan (SECP) has decided to conduct a pre-ballot scrutiny of all “issue of shares” to curtail the menace of making fictitious and multiple applications for subscription of shares, officials told The News on Monday.

Efforts are afoot to rationalise the cost of issue of corporate bonds, especially the cost relating to stamp duties paid on the issue and transfer of corporate bonds, they said. The year 2010 has so far proved to be better than the previous year, as five initial public offerings (IPOs) surfaced in just four months. Amtex Limited, Agritec Limited, Fatima Fertilizer and Safe Mix launched their IPOs, while Wateen Telecomís offering is scheduled on April 20. A cumulative of 397.67 million shares was offered in these offerings.

One window operation in Sindh to facilitate investors

KARACHI: Sindh Chief Minister Syed Qaim Ali Shah said here on Saturday that the Sindh Board of Investment (SBI) will facilitate investors through one-window in setting up industries to promote industrialisation.

The chief minister made this announcement at the conclusion of an investors’ conference organised by the Sindh Board of Investment at a local hotel on Saturday, says an official handout.

Investors opt to book profits on KSE

KARACHI: Investors at the Karachi bourse on Tuesday opted to book profits in the oil and gas sector after the KSE 100 Index briefly breached the 10,500 points mark to close at 10,419.82 points.

Blue-chips Oil and Gas Development Company Limited (OGDC) and Pakistan Petroleum Limited (PPL) remained the main stocks. OGDCL fell by 0.55 per cent to Rs131.13 with a turnover of 3.37 million shares, while PPL lost 1.28 per cent to Rs200.50 with a turnover of 3.09 million shares.

During the last five consecutive sessions, the KSE Index had witnessed an increase of four per cent.

KESC adds coal-based power to system

KARACHI: The Karachi Electric Supply Company (KESC) has added 15 MW of electricity generation capacity to its network from coal-based power plant of Al-Abbas Sugar Mills Limited located in Dhabeji.

This is the first coal-fired power plant connected to the KESC network, the utility said in a press release on Monday. Tabish Gauhar, CEO, KESC, said that the company aims to add more power to its network to effectively manage the energy requirements of the city.

KSE rises above 10,200 points after 19 months

KARACHI: Positive developments in the national politics and Moody’s stable outlook for the country kept buying interest alive on the Karachi bourse, which closed above 10,200-point on Thursday after a gap of 19-months.

“Historic breakthrough on 18th Amendment filled new spirit among equity investors,” said Atif Malik, Head of International Sales & Marekting at JS Global.

The KSE 100-share Index gained 68.34-point, or 0.67 percent, to close at 10,246.77-point.

KSE 30-share Index surged 74.31-point, or 0.71 percent, to end at 10,499.66-point.

Foreign equity inflow at $113m in March

KARACHI: Including the net foreign purchase of shares in the phenomenal sum of $13.07 million on the last trading day of the month, the Pakistan capital market attracted $113 million during March.
Figures released by the State Bank of Pakistan showed that up until 20th of the month, aggregate foreign holding in the equity markets stood in the sum of $2.1 billion.

KSE recomposes 100-share index

KARACHI: The Karachi Stock Exchange (Guarantee) has recomposed KSE 100-index, effective from April 1, according to the KSE on Wednesday.

11 companies Security Papers Ltd, Pakistan Cables, TRG Pakistan, Murree Brewery Company, PEL, Grays of Cambridge, Shifa International, PACE Pakistan, NetSol Technologies, Pakistan Telephone Cables and Clarient Pakistan have been included in the index.

Foreign buying of $13m pushes up KSE to 19-month high

KARACHI: Fresh foreign buying of $13 million in a single session on Wednesday placed the Karachi bourse to a 19-month high with blue-chip energy and banking stocks being the major gainers.

“Credit for placing the market to a 19-month high goes to foreigners, who continued to inject their money in select energy and banking stocks,” said Hamad Aslam, Head of Research at BMA Capital.