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Category: Stock & Commodity

  • SEC Pakistan brings reforms in voluntary pension system

    SEC Pakistan brings reforms in voluntary pension system

    ISLAMABAD: Securities and Exchange Commission of Pakistan (SECP) on Wednesday introduced amendments to Voluntary Pension System (VPS) Rules, 2005 with the intention to bring reforms to facilitate greater pension penetration in the country.

    The SEC Pakistan said that private pension funds established under the VPS Rules are professionally managed saving-cum-investment vehicles, that enabled salaried and self-employed Pakistanis (including non-resident Pakistanis) to contribute during their working life, to accumulate savings available after retirement.

    The regulator said that the reforms while maintaining the flexibility of individualized asset allocation, have introduced a number of measures including easier transferability between pension fund managers and funds, added flexibility to fund managers to allocate various expenses within the total permissible expense limit allowing pledging of pension account against employer loan and removal of SECP’s prior approval for VPS advertisement.

    Furthermore, in order to streamline adjustment in requirements over time, matters related to pricing, obligation, and performance of pension funds have been shifted from Voluntary Pension System Rules to the Non-Bank Finance Companies Regulations, 2008.

    The SEC Pakistan said that the reforms constitute an important step forward in ensuring protection for the elderly while safeguarding its sustainability in the future.

    It is expected that the revamped framework will not only pave the way for the growth of private pension funds, but also enhance financial inclusion and provide much needed dept to Pakistan’s capital markets.

    SECP warns against investing in fraudulent schemes
  • Stocks sink on Pakistan Indexes downgraded by MSCI

    Stocks sink on Pakistan Indexes downgraded by MSCI

    KARACHI: The stock market fell by 333 points on Wednesday as MSCI in its verdict decided to downgrade Pakistan from Emerging Markets to Frontier Market.

    The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) ended at 46,397 points from the previous day’s closing of 46,730 points.

    Analysts at Topline Securities said that after a slightly positive opening benchmark KSE-100 Index came under pressure as MSCI in its verdict has decided to downgrade Pakistan from Emerging Markets to Frontier Market which led the market to make an intraday low of 402 points.

    Major stock negativity was witnessed from LUCK, ENGRO and OGDC which collectively dented the Index by 171 points.

    On the volume and value front, the total traded volume and value clocked in at 477.7 million shares and Rs14.6 billion, respectively.

    TPL was today`s volume leader with 39.04 million shares.

    MSCI to reclassify Pakistan Indexes to frontier market
  • MSCI to reclassify Pakistan Indexes to frontier market

    MSCI to reclassify Pakistan Indexes to frontier market

    New York: MSCI Inc. (NYSE: MSCI) announced on Tuesday that it will reclassify the MSCI Pakistan Indexes from Emerging Markets to Frontier Markets.

    The MSCI is a leading provider of critical decision support tools and services for the global investment community.

    According to a statement, this conclusion follows feedback received from market participants from its recent Consultation on a Market Reclassification Proposal for the MSCI Pakistan Index.

    MSCI will reclassify the MSCI Pakistan Indexes from Emerging Markets to Frontier Markets in one step, coinciding with the November 2021 Semi-Annual Index Review (SAIR).

    Based on a simulation using pro forma data as of August 31, 2021, this would lead to the inclusion of four securities in the MSCI Frontier Markets Index with an estimated index weight of 1.90 per cent.

    Although the Pakistani equity market meets the requirements for Market Accessibility under the classification framework for Emerging Markets, it no longer meets the standards for Size and Liquidity.

    More specifically, index continuity rules, as described in section 2.4 of the MSCI Global Investable Market Indexes Methodology, have been applied since the November 2018 Semi-Annual Index Review to maintain the required three constituents in the MSCI Pakistan Index.

    Since the November 2019 SAIR, there have been no securities in the MSCI Pakistan equity universe that meet the Emerging Markets Size and Liquidity criteria within the MSCI Market Classification Framework.

    Starting with the November 2021 SAIR, the MSCI Pakistan Indexes will be rebalanced using Size and Liquidity requirements for Smaller, Average Liquidity Frontier Markets as described in section 5.2 of the MSCI Global Investable Market Indexes Methodology.

    Shares come down on MSCI reclassification
  • Shares come down on MSCI reclassification

    Shares come down on MSCI reclassification

    KARACHI: The share market fell by 188 points on Tuesday a brink of an important MSCI decision regarding reclassification of Pakistan from Emerging Market Index to Frontier markets Index.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) ended at 46,730 points as against the previous day’s close of 46,919 points, showing a decline of 188 points.

    Analysts at Arif Habib Limited said that at the brink of an important MSCI decision regarding reclassification of Pakistan from Emerging Market Index to Frontier markets Index, the KSE-100 benchmark index lost 300 points in total and closed the session -188 points.

    Vibes were negative due to continuous selling from foreign counters in cement and banking sector stocks due to MSCI reclassification and otherwise depreciating rupee against USD that makes holding PK stocks a costly affair.

    Local investors have lately been absorbing negative foreign flows in a gradual and cautious manner. TPL topped the volumes today with 41.8 million shares, followed by KOSM (33.7 million) and PIAA (29.8 million).

    Sectors contributing to the performance include Cement (-75 points), E&P (-39 points), Autos (-29 points), O&GMCs (-23 points) and Chemical (-21 points).

    Volumes increased slightly from 417.8 million shares to 423.8 million shares (+1 percent DoD). The average traded value declined by 6 percent to reach US$ 67.3 million as against US$ 71.7 million.

    Stocks that contributed significantly to the volumes include TPL, KOSM, PIAA, WTL, and BYCO, which formed 37 percent of total volumes.

    Stocks that contributed positively to the index include NESTLE (+23 points), HMB (+17 points), MEBL (+14 points), PKGS (+12 points) and IGIHL (+10 points). Stocks that contributed negatively include LUCK (-39 points), TRG (-19 points), HBL (-15 points), OGDC (-14 points) and PSO (-13 points).

  • Stock market ends down by 39 points in lackluster trading

    Stock market ends down by 39 points in lackluster trading

    KARACHI: The stock market fell by 39 points on Monday in lackluster trading activity during the day. The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) closed at 46,918 points from last Friday’s closing of 46,957 points.

    Analysts at Topline Securities said that a lackluster session was observed at the bourse during the day.

    To note, concerns regarding a ballooning trade deficit number coupled with a potential reclassification of Pakistan from the MSCI Emerging Market Index to the MSCI Frontier Market Index kept the investors at bay.

    On the results front, FCCL announced its FY21 EPS of 2.52 as compared to an LPS of (0.04) in the corresponding period last year. However, the stock succumbed to selling pressure as investors seemed disappointed over no payout after which the stock closed at Rs19.50 (down 2.69 per cent).

    Volumes continued to remain depressed as the total volume for the KSE 100 Index clocked in at 94.25 million shares while the total turnover in the KSE All Share Index was recorded at 416.15 million shares.

    The volume leader in today’s session was TPL with 59.66 million shares exchanging hands.

    Weekly Review: Market likely trade in range-bound
  • Weekly Review: Market likely trade in range-bound

    Weekly Review: Market likely trade in range-bound

    KARACHI: The stock market is likely to witness range-bound activities during next week. The analysts said that the current account deficit may be a major concern for the investors.

    The analysts at Arif Habib Limited said that the concerns persist over how manageable the deficit on the current account may be.

    However, the IMF review may note some positive progress especially on the back of impressive recent tax numbers for July-August (23 percent higher than the target).

    The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) is currently trading at a PER of 5.9x (2021) compared to the Asia Pac regional average of 14.5x while offering a dividend yield of 7.0 percent versus 2.2 percent offered by the region.

    The domestic bourse closed in red this week primarily on account of augmenting concerns on the external account. As per media reports, imports clocked in at PKR 6.3bn for Aug’21 taking the trade deficit to Rs4 billion, which is the highest ever for a single month. The local currency has continued to slide downwards with the PKR/USD settling at 166.9. Meanwhile, the cement sector has also seen pressure this week with coal prices continuing to soar. The index closed at 46,957 points, down 179 points WoW.

    Sector-wise negative contributions came from i) Commercial Banks (301 points), ii) Cement (100 points), iii) Automobile Assembler (77 points), iv) Textile composite (20 points), and v) Oil & Gas Marketing Companies (19 points).

    Whereas sectors which contributed positively were i) Technology & Communication (176 points), ii) Power Generation & Distribution (77 points) and iii) Refinery (51 points). Scrip-wise negative contributors were HBL (105 points), MEBL (80 points), UBL (63 points), MCB (48 points) and MLCF (24 points). Meanwhile, scrip-wise positive contributions came from SYS (141 points), HUBC (82 points), and TRG (33 points).

    Foreign selling continued this week, settling at USD 5.9 million against a net sell of USD 5.4 million last week. Selling was witnessed in Commercial Banks (USD 4.3 million), Cement (USD 1.3 million), and Exploration and Production (USD 0.8 million).

    On the domestic front, major buying was reported by Individuals (USD 5.1 million) and Insurance Companies (USD 4.0 million).

    Average volumes clocked in at 462 million shares (up by 20 percent WoW) while average value traded settled at USD 83 million (up by 5 percent WoW).

  • Share market ends up 54 points in mixed trading

    Share market ends up 54 points in mixed trading

    KARACHI: The share market gained 54 points on Friday, September 3, 2021, amid mixed trading activities during the day. The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) closed at 46,957 points as against previous day’s closing of 46,903 points, showing an increase of 54 points.

    Analysts at Arif Habib Limited said that the market traded in a narrow range today between -24 points and +210 points.

    Stocks including banks, oil and gas chain, cement bore selling pressure whereas technology, fertilizer, and sideboard scrips helped post an uptick in the index.

    Redemption at Mutual funds’ end kept the pressure on the Index after a net sell of $ 5.5 million yesterday. Among scrips, SERFR posted trading volumes of 83.1 million shares, followed by WTL (50.2 million) and TELE (37.6 million).

    Sectors contributing to the performance include Autos (22 points), E&P (-17 points), Technology (+77 points), Power (+13 points) and Fertilizer (+12 points).

    Volumes declined from 544.4 million shares to 465  million shares (-15 per cent DoD). The average traded value also declined by 24 per cent to reach US$ 73.3 million as against US$ 96.2 million.

    Stocks that contributed significantly to the volumes include SERFR, WTL, TELE, GGL, and BYCO, which formed 49 per cent of total volumes.

    Stocks that contributed positively to the index include SYS (+73 points), HUBC (+14 points), MCB (+13 points), ABOT (+10 points) and MEBL (+9 points). Stocks that contributed negatively include HBL (-18 points), PPL (-9 points), MTL (-8 points), INDU (-8 points) and NBP (-6 points).

    KSE-100 index plunges by 510 points on profit-booking
  • SECP warns against investing in fraudulent schemes

    SECP warns against investing in fraudulent schemes

    ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) on Thursday warned the general public against investing in any fraudulent investment schemes, which promise hefty profits and unrealistic incentives.

    The SECP has been constantly clarifying that mere registration of a company, does not authorize it to solicit deposits from the general public or offer investment schemes.

    It has been observed recently that a company namely “Econex Sales and Marketing (Private) Limited” is offering various packages to attract the public to its unlawful business activities of multi-level marketing (MLM) and referral marketing.

    The said company is using its registration status with SECP to win public confidence, deceptively implying that such activities are being undertaken through SECP’s regulated platform.

    As clearly provided in the explanation of section 301 of the Companies Act, 2017, raising unauthorized deposits from the general public, indulging in referral marketing, MLM, Pyramid, and Ponzi Schemes are unlawful activities in terms of explanation of section 301 of the Companies Act, 2017.

    The SECP, in accordance with the provisions of the Companies Act, has initiated necessary legal action against M/s Econex Sales and Marketing (Private) Limited.

    In view of the foregoing, the general public is hereby expressly advised in their own interest to be careful, not to invest their hard-earned money or indulge in illegal schemes launched by this company, actively being propagated through social media accounts and pages.

    The same caution may be exercised in the case of any other company involved in any illegal deposit-taking, unauthorized investment, or MLM schemes.

    Probe in Hascol financials underway: SECP
  • Saigols of KTML disclose availing amnesty scheme

    Saigols of KTML disclose availing amnesty scheme

    KARACHI: Kohinoor Textile Mills Limited (KTML) on Thursday shared information disclosing that its senior management has avail an amnesty scheme of undeclared foreign assets.

    A communication sent to Pakistan Stock Exchange (PSX) stated that the following shareholders of KTML informed that they had made to the Federal Board of Revenue (FBR) declarations of assets acquired/held outside Pakistan in July 2018 under the Foreign Assets (Declaration and Repatriation) Act, 2018 and intimated about their beneficial ownership of KTML.

    Following is shareholding detail prior to the declaration by virtue of the Declaration Act:

    01. Taufique Sayeed Saigol, Chief Executive Officer/Director, shareholding in KTML is 43,425,059, the percentage of paid up capital is 14.51 per cent.

    02. Mrs. Shehla Tariq Saigol, substantial shareholder, shareholding in KTML is 30,377,143, the percentage of paid-up capital is 10.51 per cent.

    Further, the above shareholders of KTML are indirectly ultimate beneficial owners in the proportion of 50 per cent each in the following two foreign companies which are also substantial shareholders of KTML as under:

    01. Mercury Management Inc., BVI (MMI), substantial shareholder, shareholding in KTML is 73,390,890, percentage of paid-up capital is 24.52 per cent.

    02. Hutton Properties Limited, BVI (HPL), substantial shareholder, shareholding in KTML is 49,639,992, percentage of paid-up capital is 16.59 per cent.

    Accordingly, it is notified that, pursuant to the Declarations made under the Declaration Act, their aggregate shareholding in KTML is as under:

    The shareholding of Taufique Sayeed Saigol, Chief Executive Officer / Director in KTML after including assets declared under amnesty scheme increased to 106,940,503 or percentage of share capital in KTML increased to 35.06 per cent.

    Similarly, the shareholding of Mrs. Shehla Tariq saigol, a substantial shareholder in KTML after including assets declared under the amnesty scheme increased to 91,892,587 or percentage of share capita in KTML increased to 30.70 per cent.

    The communication sent to the PSX, the company said: “In accordance with the highest legal ethical standards and acting out of abundant caution in a wholly precautionary way, the above-named shareholders have declared their proportionate shares of indirect shareholding ownership held in KTML through MMI and HPL managed by Saim Family Trust, a Settler Reserved Discretionary Trust.”

    Assets held and controlled by this Discretionary Trust would only be available to the beneficiaries at the discretion of the trustees, whenever distributed, it added.

    “It is clearly stated that such assets are not yet distributed by the Trustees.”

    FTO declares Car Amnesty Scheme illegal
  • KSE-100 index plunges by 510 points on profit-booking

    KSE-100 index plunges by 510 points on profit-booking

    KARACHI: The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) fell by 510 points on Thursday. The index fell owing to profit booking during the day.

    The index closed at 46,903 points as against the previous day’s closing of 47,413 points, showing a decline of 510 points.

    Analysts at Arif Habib Limited said that the market saw a draw-down of 539 points during the session, which came in the backdrop of depreciating rupee, rising costs of commodities (particularly coal for Cement) and redemption calls at mutual funds end.

    The cement sector saw significant selling pressure followed by Banks and Technology stocks due to cost pressures and limited flexibility to pass on the costs.

    Weak investor sentiment as evident from longer than anticipated consolidation of the KSE-100 benchmark made even the depreciating rupee a negative factor for Technology, Textile, and E&P stocks, which would otherwise benefit.

    Among scrips, GGL topped the volumes with 57.9 million shares, followed by WTL (53.3 million) and ANL (42.1 million).

    Sectors contributing to the performance include Banks (-138 points), Cement (-125 points), Fertilizer (-43 points), E&P (-38 points) and Technology (-32 points).

    Volumes increased from 536.6 million shares to 544.4 million shares (+1 percent DoD). The average traded value also increased by 12 percent to reach US$ 96.2 million as against US$ 8.1 million.

    Stocks that contributed significantly to the volumes include GGL, WTL, ANL, SERFR, and TELE, which formed 41 percent of total volumes.

    Stocks that contributed positively to the index include NRL (+8 points), PSX (+7 points), ATRL (+7 points), BYCO (+6 points), and MARI (+4 points). Stocks that contributed negatively include UBL (-41 points), HBL (-40 points), LUCK (-36 points), MCB (-30 points) and CHCC (-25 points).