Thursday, December 3, 2009
Karachi Stock Exchange (KSE) Extends SIND Suspension
Karachi Stock Exchange (KSE) has extended the suspension period of Sind Alkalis Ltd (SIND) for another 60 days upon failing to comply with KSE requirements. According to KSE, the action, effective from December 3 has been taken to protect the interest of traders and public.
Wednesday, December 2, 2009
Research Analyst on 02/12/2009 (Karachi Stock Exchage)
Market is likely to record mixed activities in the short term over uncertainty in the global markets owing to Dubai debacle, security situation in the country and NRO-related developments. Market would show dependency on international stock markets in the near term. However long-term outlook of the market is bullish and investors are advised to invest for a longer period of time. Inflow from Friends of Democratic Pakistan (FoDP) and International Monetary Fund (IMF) would be the supportive factors for the market. It would witness rangebound trading activities today.
Dubai Woes Devastate Karachi Stock Exchange (KSE)
Equities at Karachi Stock Exchange (KSE) declined over 2 per cent after a four-day holiday Tuesday on fears that fallout from the Dubai debt contagion could reignite global financial turmoil, while political uncertainty and grim security situation also hampered the investor confidence.
Although, the benchmark KSE 100-Index slumped by 2.1 per cent or 193.17 points it managed to sustain 9,000 levels and closed at 9,013.17, KSE 30-Index plunged by 2.3 per cent or 223.56 points to finish at 9,482.92 levels, whereas KSE All Share Index declined by 1.98 per cent or 129.56 points to end at 6,399.88 levels.
Dubai last week asked creditors of government-controlled Dubai World and Nakheel for a delay on debt repayments as a first step to restructuring.
He further elaborated that there were fears that the recent credit woes could halt or slowdown the pace of remittances and FDI flows into the country. Moreover, declining Pakistan dollar bond prices also discouraged investors as it could raise the risk premium of the country, he added. Punjani further noted that investors remained cautious over political uncertainty in the backdrop of end of National Reconciliation Ordinance (NRO) tenure.
Market started the day with 91 points into the negative zone; thereafter red numbers accumulated quickly and within just 30 minutes after the opening bells index breached the psychological barrier of 9,000 points and touched its intra-day low of 8,985 points (-ve 220 points) as investors who were worried over the Dubai financial crises preferred to take an exit from the market. Adding to the pressure was the blast in Swat and uncertainty on the political front.
Therefore selling continued mainly in oil, banking and fertiliser sectors and market remained in the negative zone right throughout the day but managed to close just above 9,000 levels.
Volumes were slightly better as 89.8 million shares traded in the market which is 5.2 million shares more as compared to turnover of 84.6 million shares Thursday. Out of total 350 active issues, 227 declined and 105 advanced while 18 issues remained unchanged.
Although, the benchmark KSE 100-Index slumped by 2.1 per cent or 193.17 points it managed to sustain 9,000 levels and closed at 9,013.17, KSE 30-Index plunged by 2.3 per cent or 223.56 points to finish at 9,482.92 levels, whereas KSE All Share Index declined by 1.98 per cent or 129.56 points to end at 6,399.88 levels.
Dubai last week asked creditors of government-controlled Dubai World and Nakheel for a delay on debt repayments as a first step to restructuring.
He further elaborated that there were fears that the recent credit woes could halt or slowdown the pace of remittances and FDI flows into the country. Moreover, declining Pakistan dollar bond prices also discouraged investors as it could raise the risk premium of the country, he added. Punjani further noted that investors remained cautious over political uncertainty in the backdrop of end of National Reconciliation Ordinance (NRO) tenure.
Market started the day with 91 points into the negative zone; thereafter red numbers accumulated quickly and within just 30 minutes after the opening bells index breached the psychological barrier of 9,000 points and touched its intra-day low of 8,985 points (-ve 220 points) as investors who were worried over the Dubai financial crises preferred to take an exit from the market. Adding to the pressure was the blast in Swat and uncertainty on the political front.
Therefore selling continued mainly in oil, banking and fertiliser sectors and market remained in the negative zone right throughout the day but managed to close just above 9,000 levels.
Volumes were slightly better as 89.8 million shares traded in the market which is 5.2 million shares more as compared to turnover of 84.6 million shares Thursday. Out of total 350 active issues, 227 declined and 105 advanced while 18 issues remained unchanged.
UAE Markets Lead Regional Slum
DUBAI: Real estate stocks weighed on Dubai's index Tuesday, pressing it lower a second day on continued uncertainty over debt restructuring at state-owned group Dubai World.
"There was buying in selected stocks, and towards the end of the session we saw buying in Emaar," said Ayman el-Saheb, director of operations at Darahem Financial Brokerage. "The panic is not yet over, but people are becoming aware this is not a catastrophe.
The index declined 5.6 per cent to 1,831 points. In Abu Dhabi, banking stocks fell on growing concern about their possible exposure of UAE banks to the indebted companies. So far, only National Bank of Abu Dhabi has officially disclosed its exposure. Union National Bank, Abu Dhabi Commercial Bank, and First Gulf Bank all fell around 9.8 per cent in the absence of any statement on their exposure.
Financial stocks led declines in Kuwait after the central bank governor said two Kuwaiti lenders had a total exposure of $118 million to Dubai World and Nakheel.
Gulf Bank slumped 8.5 per cent and Kuwait Finance House dropped 5.5 per cent. Similarly, banking stocks took a beating in Qatar, with Qatar National Bank and Doha Bank both tumbling around 9 per cent.
"There was buying in selected stocks, and towards the end of the session we saw buying in Emaar," said Ayman el-Saheb, director of operations at Darahem Financial Brokerage. "The panic is not yet over, but people are becoming aware this is not a catastrophe.
The index declined 5.6 per cent to 1,831 points. In Abu Dhabi, banking stocks fell on growing concern about their possible exposure of UAE banks to the indebted companies. So far, only National Bank of Abu Dhabi has officially disclosed its exposure. Union National Bank, Abu Dhabi Commercial Bank, and First Gulf Bank all fell around 9.8 per cent in the absence of any statement on their exposure.
Financial stocks led declines in Kuwait after the central bank governor said two Kuwaiti lenders had a total exposure of $118 million to Dubai World and Nakheel.
Gulf Bank slumped 8.5 per cent and Kuwait Finance House dropped 5.5 per cent. Similarly, banking stocks took a beating in Qatar, with Qatar National Bank and Doha Bank both tumbling around 9 per cent.
Tuesday, December 1, 2009
Research Analyst on 01/12/2009 (Karachi Stock Exchage)
Market is expected to show negative activities in the short term due to current political situation however medium term outlook of the market is positive where index could touch 9,900 levels by June end. Investors are advised to stay sidelined. Good corporate results would be the next trigger for the market. Market would perform negatively today.
KSE Sheds 1pc in Week on NRO
KARACHI: Dull trading activities witnessed at the Karachi Stock Exchange (KSE) last week which shed over 1 per cent with low investor participation who stayed reluctant to take positions ahead of Eid holidays and uncertain political situation over NRO issue.
The benchmark KSE 100-Index declined by 100 points or 1.08 per cent to close at 9,206 points, KSE 30-Index dropped 119 points or 1.22 per cent to close at 9,706 points while KSE All Share Index lost 64 points or 0.98 per cent to close at 6,529 points.
The week started on a bearish note where on the first day of the week on Monday index shed 84 points due to political turmoil in the country over National Reconciliation Ordinance (NRO) while uncertainty regarding reduction in interest rates also negatively affected the investor sentiments and they preferred to take an exit from the market with volumes reducing to near 5-month low.
However, market showed dull trading activities during the remaining three days of the week as investors opted for staying out of the market proceedings owing to a long weekend ahead. Reduction in interest rates too didn't see any major reaction as market had already discounted a 50bps reduction. Therefore on Tuesday index gained 11 points, on Wednesday it lost 29 points and on Thursday it closed with just 1 point up into the green zone. Index at one stage during intraday trading Thursday touched its lowest level of the day of 9,168 points.
Investor participation was much lower throughout the week as near 318 million shares were traded which are 473 million shares less as compared to a turnover of 791 million shares a week earlier. Average daily volumes reached 79 million shares per day which is near 79 million shares less as compared to a an average daily turnover of 158 million shares a week earlier.
The benchmark KSE 100-Index declined by 100 points or 1.08 per cent to close at 9,206 points, KSE 30-Index dropped 119 points or 1.22 per cent to close at 9,706 points while KSE All Share Index lost 64 points or 0.98 per cent to close at 6,529 points.
The week started on a bearish note where on the first day of the week on Monday index shed 84 points due to political turmoil in the country over National Reconciliation Ordinance (NRO) while uncertainty regarding reduction in interest rates also negatively affected the investor sentiments and they preferred to take an exit from the market with volumes reducing to near 5-month low.
However, market showed dull trading activities during the remaining three days of the week as investors opted for staying out of the market proceedings owing to a long weekend ahead. Reduction in interest rates too didn't see any major reaction as market had already discounted a 50bps reduction. Therefore on Tuesday index gained 11 points, on Wednesday it lost 29 points and on Thursday it closed with just 1 point up into the green zone. Index at one stage during intraday trading Thursday touched its lowest level of the day of 9,168 points.
Investor participation was much lower throughout the week as near 318 million shares were traded which are 473 million shares less as compared to a turnover of 791 million shares a week earlier. Average daily volumes reached 79 million shares per day which is near 79 million shares less as compared to a an average daily turnover of 158 million shares a week earlier.
Banks Push Hong Kong, China Higher
Hong Kong and Shanghai shares rebounded Monday with banks recovering from steep losses as worries about Dubai's debt problems eased and as Chinese authorities reassured investors they would stick with economic stimulus.
Brokers said sentiment remained cautious though worries over Dubai's debt issue had eased. "Since we don't expect the Dubai issue to have much immediate impact, the market's sentiment is very cautious and the focus is now on the US dollar," said Conita Hung, head equity research from Delta Asia Financial.
The index can test the upside at the 22,000 level if dollar weakness remains, she added.
Analysts said the sluggish market debut in Hong Kong signalled a weak investor appetite for a casino gaming company with a high valuation and an uncertain outlook. Its closest rival Wynn Macau rose 3.6 per cent to HK$9.57.
China's key stock index rose 3.2 per cent Monday, posting a third consecutive monthly gain, led by consumer-related and brokerage shares after authorities reassured investors they would stick with economic stimulus, sparking a market rebound after last week's slide.
Brokers said sentiment remained cautious though worries over Dubai's debt issue had eased. "Since we don't expect the Dubai issue to have much immediate impact, the market's sentiment is very cautious and the focus is now on the US dollar," said Conita Hung, head equity research from Delta Asia Financial.
The index can test the upside at the 22,000 level if dollar weakness remains, she added.
Analysts said the sluggish market debut in Hong Kong signalled a weak investor appetite for a casino gaming company with a high valuation and an uncertain outlook. Its closest rival Wynn Macau rose 3.6 per cent to HK$9.57.
China's key stock index rose 3.2 per cent Monday, posting a third consecutive monthly gain, led by consumer-related and brokerage shares after authorities reassured investors they would stick with economic stimulus, sparking a market rebound after last week's slide.
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