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Category: Stock & Commodity

  • Bears rule stock market for fourth consecutive session

    Bears rule stock market for fourth consecutive session

    KARACHI: Bears ruled the stock market for the fourth consecutive session on Thursday as the benchmark index declined by 428 points.

    The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) closed at 43,936 points as against the previous day’s closing of 44,364 points.

    Analysts at Arif Habib Limited said that bears ruled over the bulls for the fourth consecutive session in a week due to concerns over the devaluation of the Pak rupee and the last leg of foreign selling spree.

    Roll-over week continued to remain under pressure despite attractive valuations in terms of low P/E multiples and high dividend yields.

    Technology stocks remained in the limelight throughout the day as traders placed the bet on high-beta stocks to mark quick trading gains. On the flip-side, Institutional investors fetched for value hunting in the last trading hour.

    Sectors contributing to the performance include Commercial Banks (-140 points), Power (-59 points), Fertilizer (-50 points), Cement (-48 points) and Pharmaceuticals (-432 points).

    Volumes decreased from 310.4 million shares to 195.2 million shares (-37.1 per cent DoD). Traded value also decreased by 35.2 per cent to reach US$ 48.0 million as against US$ 74.0 million.

    Stocks that contributed significantly to the volumes include TPLP, BYCO, HUBC, WTL and TRG.

    KSE-100 index sheds 585 points on mini-budget reports
  • PSX changes market timings amid MSCI reclassification

    PSX changes market timings amid MSCI reclassification

    KARACHI: Pakistan Stock Exchange (PSX) on Thursday announced a temporary change in duration for closing price determination and market timings.

    The PSX said that in the context of the reclassification of Pakistan from MSCI Emerging Market Index to MSCI Frontier Market Index, all Market Participants are hereby informed that the following temporary changes in ‘Market Timings’ and ‘Closing Price Determination’ shall be implemented for the period mentioned hereunder:

    1. CHANGE IN DURATION FOR CLOSING PRICE DETERMINATION:

    The ‘Closing Price’ of Securities shall be determined over the last 120 minutes of the regular market session on the basis of Volume Weighted Average Price (VWAP) as against the current practice of last 30 minutes.

    2. CHANGE IN MARKET TIMINGS:

     Revised timing for Post Close Session, Trade Rectification/Modification session and Negotiated Deals Market shall be as under:

    Market State:

    Monday to Thursday

    Post Close Session: 16:00 to 16:30

    Trade Rectification / Modification: 16:30 to 18:15

    Negotiated Deals Market (NDM): 09:15 to 18:15

    Friday

    Post Close Session: First session – Second Session 17:00 to 17:30

    Trade Rectification / Modification: first Session – Second Session 17:30 to 18:45

    Negotiated Deals Market (NDM): First Session 09:15 to 12:00 Second Session 14:30 to 18:45

     The above changes shall remain effective from Friday, November 26th 2021 till Friday, December 3rd 2021. The timings shall be reverted back to the existing DTS w.e.f. Monday, December 6th 2021, the PSX said.

    KSE-100 index sheds 585 points on mini-budget reports
  • SEC Pakistan amends regulations to facilitate startups

    SEC Pakistan amends regulations to facilitate startups

    ISLAMABAD: The Securities and Exchange Company of Pakistan (SEC Pakistan) has amended regulations to facilitate startups and small companies in raising equities through conventional modes.

    The regulator introduced amendments in the Companies (Further Issue of Shares) Regulations, 2020 to address the impediments faced by the corporate sector, particularly startups and small companies, in raising equity through conventional modes, according to a statement issued on Wednesday.

    Key changes include permission to convert one class of shares into another class, issuance of shares with differential rights without the approval of the SECP, and specification of mechanism for valuation of non-cash assets.

    As per the law, companies can have more than one kind of share conferring varying rights of dividend, voting, and participation depending upon the needs of its capital providers. The requirement of prior approval of SECP has now been abolished. Such a measure will considerably help reduce the administrative burden and will contribute towards the growth of the fast-paced corporate world by removing a layer of regulatory approval.

    Another vital amendment is to permit conversion of one class or kind of shares into another class or kind e.g. ordinary into preference shares. Currently, the Regulations only allow conversion of preference shares into ordinary shares while no mechanism is provided for other classes of shares.

    The change aims to facilitate companies in maintaining an optimal capital structure considering their own financial needs and the demands of their shareholders.

    Besides, a complete mechanism for the valuation of immovable property, intangible assets, or services has been introduced.

    Now, the consulting engineers registered with Pakistan Engineering Council and QCR rated chartered accountant firms will be eligible to conduct valuation for the purposes of the Act.

    These amendments have been introduced in consideration of numerous queries and suggestions received from small companies and startups, and are at par with the international jurisdictions.

    SECP warns against investing in fraudulent schemes
  • KSE-100 index sheds 585 points on mini-budget reports

    KSE-100 index sheds 585 points on mini-budget reports

    KARACHI: The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) fell by 585 points on Wednesday as investors feared on mini-budget reports.

    The index closed at 44,364 points from the previous day’s closing of 44,948 points.

    Analysts at Arif Habib Limited said that bears continued to dominate over the bulls for the straight three consecutive sessions in a week as investors feared the upcoming mini-budget.

    Moreover, The International Monetary Fund (IMF) has rejected Pakistan’s request to keep a door open for borrowing from the central bank and also did not agree on any meaningful accountability of the State Bank of Pakistan (SBP).

    The third day of the roll-over week remained under pressure despite attractive valuations. Across the board, selling was witnessed.

     On the institutional front, a cautious stance was recorded due to the concerns of foreign selling spree in the upcoming MSCI re-balancing day.

    Sectors contributing to the performance include Banks (-159.0 points), Fertilizers (-123.8 points), Cements (-117.8 points), and Pharmaceuticals (-48.7 points).

    Volumes increased from 264.6 million shares to 310.3 million shares (+17.3 per cent DoD). Average traded value also increased by 33.0 per cent to reach US$ 74.0 million as against US$ 55.6 million.

    Stocks that contributed significantly to the volumes include TRG, WTL, TPLP, TELE and BYCO.

    KSE-100 Index falls 796 points on KIBOR rise
  • KSE-100 Index falls 796 points on KIBOR rise

    KSE-100 Index falls 796 points on KIBOR rise

    KARACHI: The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) fell by 796 points on Tuesday on hefty increase in Karachi Interbank Offered Rate (KIBOR) following key policy rate rise.

    The KSE-100 index closed at 44,949 points as against the previous day’s closing of 45,745 points, showing a decrease of 796 points.

    Analysts at Arif Habib Limited said that today again, Bears ruled over the bulls as investors were unable to digest the hawkish stance of the last Monetary Policy Committee (MPC) which resulted in double-digit six-month KIBOR.

    A hefty increase in the finance cost of leveraged businesses will eventually lower profits as a major portion of borrowing appears from KIBOR-led lending.

    The second day of roll-over week became under pressure as investors took a cautious side and opted for squaring of roll-over positions. In the last trading hour, a bloodbath session was witnessed as selling came across the board.

    Sectors contributing to the performance include Technology (-178 points), Cement (-145 points), Commercial Banks (-94 points), E&P (-64 points) and OMC’s (-44 points).

    Volumes increased from 261.9 million shares to 264.6 million shares (-1.0 per cent DoD). The traded value decreased by 11.1 per cent to reach US$ 55.8 million as against US$ 62.8 million.

    Stocks that contributed significantly to the volumes include TRG, WTL, BYCO, GTECH and HASCOL.

    Stocks plunge by 744 points on interest rate hike
  • Stocks plunge by 744 points on interest rate hike

    Stocks plunge by 744 points on interest rate hike

    KARACHI: Stocks plunged 744 points on Monday while reacting to an unexpected hike in interest rate by the central bank.

    The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) closed at 45,745 points as against last Friday’s closing of 46,489 points.

    Analysts at Arif Habib Limited said that bears ruled over the bulls today as investors were unable to digest the higher than expected interest rate increase.

    The beginning of roll-over week witnessed bearish momentum despite the long-awaited news of Pakistan and the International Monetary Fund (IMF) having reached a staff-level agreement.

    Firstly, only cyclical stocks came under the radar and investors started off-loading positions.

    Later on, a bloodbath session was witnessed as selling came across the board. On the institutional front, a cautious stance was noted due to the concerns of foreign selling spree.

    Sectors contributing to the performance include Cement (-184 points), Technology (-153 points), E&P (-90 points), Ferilizer (-70 points) and Textile Composite (-36 points).

    Volumes decreased from 304.2 million shares to 261.9 million shares (-13.9 per cent DoD). Traded value also decreased by 8.8 per cent to reach US$ 62.6 million as against US$ 68.6 million.

    Stocks that contributed significantly to the volumes include TRG, BYCO, TPLP, TREET and GTECH.

    Stocks gain 379 points as banks cheer rate increase
  • Weekly Review: market likely react to policy rate hike

    Weekly Review: market likely react to policy rate hike

    KARACHI: The stock market is likely to react to a hike in the policy rate during next week. The State Bank of Pakistan (SBP) increased the key policy rate by 150 basis points to 8.75 per cent.

    (more…)
  • Stocks gain 379 points as banks cheer rate increase

    Stocks gain 379 points as banks cheer rate increase

    KARACHI: The stocks gained 379 points on Friday owing to major trading activity in banking sector on massive rise in interest rate by the central bank.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) ended at 46,489 points as compared with previous day’s closing of 46,110 points.

    Analysts at Arif Habib Limited said that the market mostly stayed in the green zone today mainly led by the banking sector.

    In the first session, positive momentum was observed as investors became optimistic due to the Large Scale Manufacturing Industries (LSMI) output number that increased by 5.15 percent in the first quarter (July-September) of the current fiscal year 2021-22 compared to the same period of last fiscal year 2021, as almost all major manufacturing sectors posted growth.

    In the second session, profit booking was observed across the board after the Current Account Deficit (CAD) number clocked in at USD 1.7 billion during October 2021. On YoY basis, the primary reason behind the deficit was 66 per cent YoY increase in total imports to USD 6.8 billion.

    On the institutional front, accumulation was witnessed in the banking stocks. Moving forward, Monetary Policy decision to raise the policy rate by 150 basis points to 8.75 per cent will create volatility in the upcoming roll-over week.

    The Index closed at 46,489.4 points, up 378.9 points, (0.82 per cent DoD). Sectors contributing to the performance include Banks (178.98 points), Fertilizers (102.24 points), E&Ps (68.03 points) and Cements (62.03ptc).

    Volumes increased from 263.55 million shares to 304.21 million shares (15.4 per cent DoD) and Traded value also increased by 41.6 per cent to reach US$ 68.46 million as against US$ 48.35 million.

    Stocks that contributed significantly to the volumes include GGL, SERF, FNEL, FFLR1 and WTL.

    KSE-100 index sheds 84 points in volatile trading
  • TPL Properties, Bahria sign MoU for tourist beach resorts

    TPL Properties, Bahria sign MoU for tourist beach resorts

    KARACHI: TPL Properties (TPLP) and Bahria Foundation have signed a Memorandum of Understanding (MoU) for the construction of tourist beach resorts.

    TPL Properties said it signed the MoU with Bahria Foundation, according to a communication received to Pakistan Stock Exchange (PSX) on Friday.

    The company said that it had signed a MoU with Bahria Foundation, a trust established and existing under the Endowment Act, 1890 and engaged in industrial, commercial and development activities in Pakistan.

    As per the MoU, Bahria Foundation shall collaborate with TPLP to utilize the expertise of TPLP to design, develop, construct and market real estate, including potential tourist beach resorts.

    Bahria Town investors fear their life-time savings at stake
  • KSE-100 index sheds 84 points in volatile trading

    KSE-100 index sheds 84 points in volatile trading

    KARACHI: The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) on Thursday lost 84 points amid volatile trading sessions observed during the day.

    The KSE-100 index closed at 46,110 points from the previous day’s closing of 46,194 pints.

    Analysts at Topline Securities said that the volatile session was observed at the bourse today with the KSE 100 index making an intraday high of 46,292 and an intraday low of 45,728 to eventually settle the day, down -83.92 points, at 46,110 points.

    They said TRG dragged the index lower by 101.51 points and closed the day at its lower lock as investors looked to offload the stock owing to the recent scandal regarding the company’s owner, Zia Chisti.

    The commercial banking sector continued to see investor interest due to expectations of an interest rate hike in the MPS scheduled for tomorrow. Consequently, MEBL, MCB, UBL & HMB cumulatively added 74.12 points to the benchmark index.

    On the volume front, the total traded volume and value in the KSE All Share index clocked in at 263.58 million shares and PKR 8.47 billion, respectively.

    The volume leader for today was MERITR2 with 42.18 million shares traded followed by GGL with 29.06 million shares exchanging hands during the session.

    Stocks fall 348 points on policy rate rise expectations