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Category: Stock & Commodity

  • Stock market sheds 223 points on coronavirus restrictions

    Stock market sheds 223 points on coronavirus restrictions

    KARACHI:  The stock market fell by 223 points on Friday as investors were upset on further restrictions imposed by the government to prevent spread of coronavirus.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 44,707 points from previous day’s closing of 44,930 points, showing a decline of 223 points.

    Analysts at Arif Habib Limited said that the market declined further by 566 points during the session, again in anticipation of lock down at national level that caused investors to adopt cautious approach and avoid taking new positions. KAPCO announced financial results today, which had little impact on stock price due to non-declaration of dividend against market expectation.

    O&GMCs, E&P, Cement and Steel sector stocks saw selling pressure induced by institutional investors. Among scrips, GGL topped the volumes with 38.7 million shares, followed by WTL (24.1 million) and TRG (23.6 million).

    Sectors contributing to the performance include E&P (-54 points), Chemical (-40 points), Fertilizer (-38 points), Power (-32 points) and Textile (-28 points).

    Volumes declined from 328.9 million shares to 240.5 million shares (-27 percent DoD). Average traded value also declined by 26 percent to reach US$ 76.6 million as against US$ 103.5 million.

    Stocks that contributed significantly to the volumes include GGL, WTL, TRG, UNITY and BYCO, which formed 43 percent of total volumes.

    Stocks that contributed positively to the index include TRG (+49 points), HMB (+30 points), AICL (+15 points), NBP (+12 points) and PSX (+5 points). Stocks that contributed negatively include OGDC (-31 points), COLG (-31 points), HUBC (-27 points), ENGRO (-16 points) and HBL (-12 points).

  • Equity market witnessed decline of 377 points on rising coronavirus cases

    Equity market witnessed decline of 377 points on rising coronavirus cases

    KARACHI: The equity market fell by 377 points on Thursday owing to rising concerns of investors over fast spread of coronavirus in the third wave.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 44,930 points as against previous day’s closing of 45,306 points, showing a decline of 377 points.

    Analysts at Arif Habib Limited said that concern over growing cases of Corona and incidence in major cities thereof kept the investors perturbed the second day as well, where despite healthy earnings posted by companies announced today, the index eventually went down by 424 points. At the close, the index registered a decline of 377 points.

    E&P, Cement, Steel scrips contributed the most to the decline, whereas banking sector stocks saw pick up today. Notable scrips declaring results today includes ENGRO and UBL, which made the announcement at the beginning of the session that included dividend declaration, however, selling pressure brought the stock prices down by the end of session. Among scrips, GGL topped the volumes with 36.3 million shares, followed by TRG (30.2 million) and WTL (26.8 million).

    Sectors contributing to the performance include E&P (-94 points), Cement (-79 points), Textile (-55 points), Technology (-45 points) and Autos (-34 points).

    Volumes declined from 387.9 million shares to 328.9 million shares (-15 percent DoD). Average traded value also declined by 18 percent to reach US$ 103.5 million as against US$ 126.3 million.

    Stocks that contributed significantly to the volumes include GGL, TRG, WTL, UNITY and TELE, which formed 38 percent of total volumes.

    Stocks that contributed positively to the index include UBL (+56 points), HBL (+45 points), ENGRO (+27 points), BAFL (+11 points) and BAHL (+8 points). Stocks that contributed negatively include OGDC (-40 points), MCB (-29 points), PPL (-26 points), SYS (-25 points) and LUCK (-20 points).

  • SECP’s guidelines for convertible debt securities

    SECP’s guidelines for convertible debt securities

    ISLAMABAD: Securities and Exchange Commission (SECP) on Wednesday notified guidelines for issuance of convertible debt securities in Pakistan through both private placement and public offering mode.

    The SECP issued the following guidelines:

    Steps involved in Private Placement:

    i. Requisite approval under section 83 of the Companies Act, 2017 for further issue of share capital in relation to Issuance of CDS. (Since conversion of CDS into shares would enhance the share capital of the Company, therefore approval of section 83 (1) b is required, whereby a public Limited company can enhance share capital by the way of other than right offer through special resolution and Commission’s approval.

    ii. Structuring of CDS as per the Structuring of Debt Securities Regulations, 2020. As per the said Regulations, the Issuer can issue the CDS either through execution of Issuance agreement or Trust Deed. Provisions relating to Trust Deed and Issuance agreement are specified at regulation 11 and 15 of the Structuring of Debt Securities Regulations, 2020, respectively.

    iii. Appointment of Investment agent or Debt Securities Trustee depending upon the structure opted by the Issuer. (Investment agent is required in case of Issuance agreement and Debt Securities Trustee in case of Trust structure.)

    Entity holding a valid Consultant to the Issue license can act as Investment Agent, list of licensed Consultant to the Issue and Debt Securities Trustee is available at SECP’s website and can be accessed through:

    https://www.secp.gov.pk/data-and-statistics/capital-markets/

    iv. Drafting of Information memorandum by the Issuer for private placement. (Content of Information memorandum is prescribed in the Private Placement Rules, 2017)

    v. After complying with aforesaid requirements, Issuer can directly place convertible debt securities to the eligible investors as per Private Placement Rules, 2017. Only eligible investors can invest in privately placed convertible debt securities. (Eligible investors are specified by Commission vide SRO dated April 19, 2021 under section 66 of the Companies Act, 2017).

    vi. No regulatory approval is required for placement of CDS. (Since, the issue is privately placed and general public is not involved, therefore PSX and SECP approval is not required)

    vii. After placement, Issuer can list the CDS at Pakistan Stock Exchange as per Chapter 5C of the PSX Rule Book. (Listing requirements are specified in Chapter 5C).

    viii. Subsequent to listing, only eligible investors notified by the Commission can invest in these securities in secondary debt market.

    ix. Secondary market trading of privately placed listed debt securities is visible at BNB trading board of PSX and can be accessed through:

    https://dps.psx.com.pk/trading-panel

    Steps involved in Public Offering:

    i. Appointment of Consultant to the Issue (CTI), Underwriter(s) and Shareregsitar by the Issuer as per Public Offering Regulations, 2017.

    List of licensed Consultant to the Issue, Underwriters and Share Registrars is available at SECP’s website and can be accessed through:

    https://www.secp.gov.pk/data-and-statistics/capital-markets/

    (Role of Consultant to the Issue is to (i) draft listing application, prospectus and related documents; (ii) seek approval of PSX and SECP on the behalf of the Issuer; (iii) ensure publication of prospectus in accordance with relevant law; (iv)conduct roadshows to sell the issue; (v) guide issuer throughout the public offering process etc.

    (Role of Underwriter: Underwriter provides commitment to subscribe the unsubscribed portion of the issue. Underwriting helps the Issuer to get desired amount of the funds required for the implementation of the Project, which the Issuer would not be able to get in case of undersubscription of securities. Moreover, underwriting provide confidence to the investors that an independent third party has conducted proper due- diligence of the issue including the price before underwriting the issue.)

    ii. Structuring of CDS as per the Structuring of Debt Securities Regulations, 2020. As per the said Regulations, the Issuer can issue the CDS either through execution of Issuance agreement or Trust Deed. Provisions relating to Trust Deed and Issuance agreement are specified at regulation 11 and 15 of the Structuring of Debt Securities Regulations, 2020, respectively.

    iii. Appointment of Investment agent or Debt Securities Trustee depending upon the structure opted by the Issuer. (Investment agent is required in case of Issuance agreement and Debt Securities Trustee in case of Trust structure.)

    Entity holding a valid Consultant to the Issue license can act as Investment Agent, list of licensed Consultant to the Issue and Debt Securities Trustee is available at SECP’s website and can be accessed through:

    https://www.secp.gov.pk/data-and-statistics/capital-markets/

    iv. Preparation of Prospectus and listing documents by the CTI. (Content of Prospectus is prescribed in First Schedule of the Public Offering Regulations, 2017)

    v. Submission of listing documents along with the prospectus to the PSX for approval. (Listing documents are specified at Annexure -I of Chapter 5B of the PSX rule book) PSX rule book can be accessed through:

    https://www.psx.com.pk/psx/themes/psx/uploads/PSX_Rulebook_%28updated_on_March_31%2C_2021%29.pdf

    vi. Approval under section 83 of the Companies Act, 2017 for further issue of share capital. Since Conversion of CDS into shares would enhance the share capital of the Company, therefore approval of section 83 (1) b is required, whereby a public Limited company can enhance share capital by the way of other than right offer through special resolution and Commission’s approval. (It is advisable to obtain approval(s) after structuring of the CDS, however approval can be obtained before placement)

    vii. Placement of prospectus by PSX on its website for seeking public comments. (seven working days)

    viii. Pursuant to PSX approval, submission of prospectus to the Commission for approval under section 87 (2) read with section 88(1) of the Securities Act, 2015.

    ix. Subsequent to Commission approval, seeking dates from PSX for publication of prospectus and public subscription. (To save cost, abridged version of prospectus can be published)

    x. Prospectus has to be published in at least one English Newspaper and Urdu version of the prospectus in at least one Urdu Newspaper.

    xi. Prospectus has to be published not less than seven days and not more than thirty days before the commencement of the subscription period.

    xii. Publication of prospectus after obtaining dates from PSX.

    xiii. Placement of CDS to the general public during the public subscription period.

    xiv. Listing of CDS at Pakistan Stock Exchange as per Chapter 5B of the PSX Rule book (Listing requirements are specified in Chapter 5B).

    xv. Subsequent to listing, general public including both institutional and individual investors can invest in these securities in secondary debt market.

    xvi. Secondary market trading of publicly listed debt securities is visible at BNB trading board of PSX and can be accessed through:

    https://dps.psx.com.pk/trading-panel

  • Stock market ends down by 93 points in narrow range trading

    Stock market ends down by 93 points in narrow range trading

    KARACHI: The stock market ended down by 93 points on Wednesday while trading in a narrow range during the day. The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 45,307 points as against previous day’s closing of 45,400 points, showing a decline of 93 points.

    Analysts at Arif Habib Limited said that the market traded in a narrow range today between -174 points and +227 points, closing the session -93 points.

    Investors already appeared somewhat despondent of the financial results and indifference of pertinent stocks to those results, NCOC’s hint towards lock down of major cities added fuel to fire.

    Selling pressure ensued that brought the index down, eroding the gains earlier made in the session. O&GMCs, E&P, Cement and Steel sector stocks bore the brunt and waning investor confidence had its bearing on technology stocks as well.

    Among volume leaders, TRG led the table with 46.7 million shares, followed by WTL (42.8 million) and UNITY (37.5 million).

    Sectors contributing to the performance include Technology (+72 points), Banks (+59 points), Fertilizer (+18 points), Cement (76 points), E&P (-45 points), and Engineering (-24 points).

    Volumes increased from 343.2 million shares to 387.9 million shares (+13 percent DoD). Average traded value also increased by 36 percent to reach US$ 126.5 million as against US$ 92.8 million.

    Stocks that contributed significantly to the volumes include TRG, WTL, UNITY, GGL and TELE, which formed 45 percent of total volumes.

    Stocks that contributed positively to the index include TRG (+88 points), ENGRO (+37 points), NBP (+22 points), KTML (+18 points) and EFERT (+13 points). Stocks that contributed negatively include LUCK (-28 points), FFC (-22 points), POL (-18 points), OGDC (-16 points) and ISL (-15 points).

  • SECP issues list of persons for issuance of instruments

    SECP issues list of persons for issuance of instruments

    ISLAMABAD: Securities and Exchange Commission (SECP) on Tuesday issued a notification to revise previous SRO regarding list of persons to whom any instrument in the nature of ‘redeemable capital’ may be issued by a company.

    The SECP notified the following persons to whom any instrument in the nature of “redeemable capital” may be issued by a company, subject to the terms and conditions as provided under section 66 of the Act, namely:-

    (i) mutual funds, Voluntary Pension Schemes and Private fund being managed by NBFC;

    (ii) insurer registered under the Insurance Ordinance, 2000 (XXXIX of 2000);

    (iii) a Securities Broker;

    (iv) a Fund and Trust as defined in the Employees Contributory Funds (Investment in Listed Securities) Regulations, 2018;

    (v) a company and body corporate as defined in the Companies Act, 2017(XlX of 2017);

    (vi) all individual investors including accredited individual investors, in case of Government Debt Securities, and debt securities whose debt servicing is guaranteed by the Government;

    (vii) accredited individual investors, in case of corporate debt instruments: Provided that the company shall ensure the following:

    (a) instrument is not placed to more than fifty (50) accredited individual investors;

    (b) information memorandum contains all applicable information/disclosures as prescribed under the Public Offering regulations, 2017; and

    (c) instrument is not sold to non-accredited investors in secondary market.

    Explanation: – for the purposes of this notification the expressions, –

    (a) “accredited individual investor” means an individual investor registered with National Clearing Company of Pakistan Limited and having net assets of Rs. 5 million or more; and

    (b) “Government Debt Securities” means a debt security such as Treasury Bill (T-Bill), Pakistan Investment Bond (PIB), Government of Pakistan (GoP) Ijarah Sukuk and any other debt instrument issued by the Federal Government, Provisional Government, Local Government/Authority, and any other statutory body.

  • KSE-100 index gains 486 points on healthy corporate earnings

    KSE-100 index gains 486 points on healthy corporate earnings

    KARACHI: The stock market gained 486 points on Tuesday on health corporate results, analysts said. The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 45,400 points from last day’s closing of 44,914 points, showing an increase of 486 points.

    Analysts at Arif Habib Limited said that the market went up by 645 points during the session and closed the session +459 points on account of a host of corporate result announcements scheduled for today.

    Although the results of key companies posted healthy growth, the pertinent stock prices did not respond in the same fashion.

    Among the key results announced at the bourse today were HBL, ISL, ASL, MEBL however, the price performance remained muted. ASL on the other hand went down post announcement due to selling pressure.

    Govt.’s resolution of the law and order situation regarding TLP somewhat allayed Investors fear. Technology stocks, particular TELE and TRG helped change the sentiment tide early on, when TRG announced material information regarding one of its subsidiaries, which resulted in the scrip showing bids at upper circuit in the pre-open session. Among scrips, WTL led the table with 56.6 million shares, followed by UNITY (30.6 million) and GGL (24.6 million).

    Sectors contributing to the performance include Technology (+121 points), Banks (+78 points), Cement (+37 points), Fertilizer (+35 points) and Textile (+26 points).

    Volumes dipped from 363 million shares to 343.3 million shares (-6 percent DoD). Average traded value however, increased by 10 percent to reach US$ 92.9 million as against US$ 84 million.

    Stocks that contributed significantly to the volumes include WTL, UNITY, GGL, TRG and TELE, which formed 42 percent of total volumes.

    Stocks that contributed positively to the index include TRG (+124 points), HBL (+36 points), UNITY (+25 points), LUCK (+21 points) and COLG (+20 points). Stocks that contributed negatively include MARI (-12 points), EPCL (-11 points), MCB (-7 points), POL (-6 points) and NRL (-3 points).

  • Equity market declines by 392 points on law and order situation

    Equity market declines by 392 points on law and order situation

    The equity market experienced a significant downturn on Monday, with the benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) closing at 44,914 points, marking a decline of 392 points from the previous close of 45,306 points.

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  • PSX declares around 200 percent growth in after tax profit for nine-month period

    PSX declares around 200 percent growth in after tax profit for nine-month period

    KARACHI: Pakistan Stock Exchange (PSX) on Monday announced a massive growth of around 200 percent in after tax profit for nine-month period ended March 31, 2021 owing to significant increase in listing fee and income from exchange operations.

    The stock exchange declared Rs542 million as profit after tax during first nine months of the current fiscal year as compared with Rs181 million in the corresponding period of the last fiscal year.

    The PSX declared Re0.68 as basic and diluted earnings per share during July – March 2020/2021 as compared with Rs0.23 in the same period of the last fiscal year.

    According to the results the PSX revenue from exchange operations posted 81 percent increase to Rs531 million during first nine months of the current fiscal year as compared with Rs294 million in the corresponding months of the last fiscal year.

    Similarly, the revenue from listing fee also posted 36 percent increase to Rs410 million during first nine months of the current fiscal year as compared with Rs302 million in the same period of the last fiscal year.

    However, mark-up/interest income of the stock exchange reduced to Rs58 million during the period under review as compared with Rs113.52 million in the corresponding period of the last fiscal year.

    Administrative expensive of the stock exchange increased to Rs908 million during nine-month period ended March 31, 2021 as compared with Rs846 million in the corresponding period of the last fiscal year.

    The income on share of profit from associated also increased to Rs427 million during July – March 2020/2021 as compared with Rs284 million in the same period of the last fiscal year.

  • Weekly Review: market to remain bullish

    Weekly Review: market to remain bullish

    KARACHI: The stock market likely to move in positive zone during next week owing to financial results and improved exchange rate.

    Analysts at Arif Habib Limited said that the market to remain bullish in the upcoming week. With the commencement of result season, we believe Oil and cyclical sectors will be under limelight on the back of healthy earnings expectations.

    Additionally improvement in macroeconomic indicators and appreciation of PKR/USD parity will keep investors’ sentiments positive.

    However, any further increase in domestic COVID-19 infection ratio may dampen investor’s sentiments.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) is currently trading at a PER of 6.8x (2021) compared to Asia Pac regional average of 16.3x while offering a dividend yield of around 7.1 percent versus 2.6 percent offered by the region.

    This week trading commenced on a negative note with the index retreating by 208 points on Monday amidst the ongoing third wave of Covid-19 (threat of lockdown as per NCOC’s proposal given rise in infection ratio).

    However, bulls took charge on Tuesday as positive sentiments were fueled by i) Slowdown in infection ratio, ii) Surge in international oil prices by 3.6 percent WoW resulting in buying across heavy-weight E&P scrips, iii) Expectation of outstanding quarterly results, iv) Large Scale Manufacturing inching up by 7.45 percent in 8MFY21, and v) Forex reserves climbing to a 5-year high of $23.2 billion. The KSE-100 index closed at 45,306 points, up by 119 points or 0.26 percent WoW. 

    Contribution to the upside was led by i) Commercial Banks (81 points), ii) Technology and Communication (78 points), iii) Fertilizer (43 points), iv) Automobile Assemblers (25 points), and v) Oil and Gas Exploration Companies (18 points). Scrip-wise major gainers were TRG (60 points), FFC (60 points), BAHL (22 points), EFERT (21 points), and HBL (20 points). Whereas, scrip-wise major losers were ENGRO (47 points), HUBC (27 points), PSO (27 points), SEARL (21 points) and DGKC (20 points).  

    Foreigners offloaded stocks worth of $1.0 million compared to a net sell of $9.5 million last week. Major selling was witnessed in all other Sectors (USD 2.64mn) and Commercial Banks (USD 1.31mn). On the local front, buying was reported by Individuals (USD 9.77mn) followed by Other Organization (USD 3.91mn). That said, average daily volumes and traded value for the outgoing week were down by 10 percent and 18 percent to 368mn shares and USD 100mn, respectively.     

  • Share market gains 75 points amid thin trading volume

    Share market gains 75 points amid thin trading volume

    The share market saw a modest rise on Friday, with the benchmark KSE-100 index of Pakistan Stock Exchange (PSX) gaining 75 points. The index closed at 45,306 points, up from the previous day’s close of 45,230 points. This upward movement comes despite a significant reduction in trading volumes during the day.

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