Pakistan Economy - News & Updates

[ameer219]

Activity at Karachi and Qasim ports


RECORDER REPORT
KARACHI (March 28 2010): The Karachi Port handled 135,877 tonnes of cargo including 84,928 tonnes of import cargo; 50,949 tonnes of export cargo and 5,018 loaded and empty containers during last 24 hours ended at 0700 hours on Saturday. The total import cargo of 84,928 tonnes comprised of 25,157 tonnes of containerised cargo; 1,949 tonnes of bulk cargo; 9,117 tonnes of coal; 6,700 tonnes of rock phosphate and 42,005 tonnes of oil/liquid cargo.

The total export cargo of 50,949 tonnes comprised of 35,070 tonnes of containerised cargo; 443 tonnes of bulk cargo; 6,603 tonnes of cement; 833 tonnes of rice and 8,000 tonnes of oil/liquid cargo. Seven ships namely Raazi, Kumait, Bsle Pacific, President Jackson, Hyundai Emperor and Queen Arrow-II sailed out to sea during the reported period.

Six vessels viz President Jackson, Allaince St. Louis, Ken Gallent, Sammi Superstar, Kumsan and Adriatic Arrow are currently at the berths. Three ships namely Allaince St. Louis, Barwaaqo and Kota Akbar expected to sail on Saturday, while four vessels viz X-Press Annapurna, Sunrise Lilac, Quetta and Gemini are expected to sail on Sunday.

Six vessels viz MT Johar, Kota Akbar, Allaince St. Louis, Sammi Superstar, Adriatic Arrow and Al-Karim-M due to arrive on Saturday, while eight ships namely Constancy, Navi G8 Leon, Hum Chin, APL Chicago, Bunga Raya Sepuluh, BC San Francisco, YM Asia and Fu Yuan Shan are due to arrive on Sunday.

PORT QASIM
The Port Qasim handled 82,757 tonnes of cargo includes 53,171 tonnes of import cargo; 29,586 tonnes of export cargo and 3,192 loaded and empty containers (TEUs) during last 24 hours on Saturday.

The total import cargo of 53,171 tonnes includes 11,491 tonnes of palm oil; 9,400 tonnes of phosphoric acid; 1,650 tonnes of MEG and 30,630 tonnes of containerised cargo. The total export cargo of 29,586 tonnes includes 8,868 tonnes of rice; 6,918 tonnes of cement and 13,800 tonnes of containerised cargo.

Three ships namely MT Al-Salam-II, MT Sichem Defender and MT Bunga Melati Dua sailed out to sea during last 24 hours, while two more ships namely CV Maersk Novazzano and MT Sichem Melbourne are expected to sail on Saturday afternoon. Nine vessels viz CV Maersk Novazzano, CV MSC Jemima, MV Odin Pacific, MV Super Star-II, MV Green Line, MT Sichem Melbourne, MT Sichem Defender, MT Malvern and MT Bunga Melati Dua are currently occupying berths to load/offload containers, rice, cement, MEG, LPG and phosphoric acid respectively during last 24 hours.

One ship namely Eleonora carrying rice is currently at the outer anchorage. Two vessels: Oil tanker MT Al-Kuwaitaih and edible oil vessel MT Bum Chin are expected to take berths at FOTCO Oil Terminal and Liquid Cargo Terminal respectively on Saturday. One ship namely MV Eleanora carrying rice due to arrive on Saturday.

Three vessels viz CV Maersk Ohio, CV Al-Wajba and MT Gey Hope with containers and paln oil are due to arrive on Sunday, while four more ships namely MT Platters, MT Oriental Oki, MT Precedence and MT Palanimalai carrying crude oil, chemicals, palm oil and phosphoric acid are due to arrive on Monday.

Copyright Business Recorder, 2010

http://www.brecorder.com/index.php?id=1036722&currPageNo=1&query=&search=&term=&supDate=

 

[ameer219]

Pakistan's corporate earnings rise as economy looks up


(MENAFN - Khaleej Times) The corporate earnings are rising on the back of a spike in the economy, and profitability is projected to improve further by end-June.

The corporate profits rose 88.2 per cent on year-on-year basis to a healthy Rs51.2 billion during the fourth quarter � October-December � of calendar year-2009. The profits were up by Rs27.2 billion in the like quarter of cy-2008. This is indicted in the corporate reports for the quarter.

The boost in corporate profitability has been significantly pushed up by better performance of two key sectors � banks and oil marketing companies (OMCs). The OMCs earned more than ever before on the back of large furnace oil sales and gains made on inventory. The banks, on the other hand, benefited as they had to make reduced provisioning for non-performing loans (NPLs).

Despite these positive indications, the benchmark Karachi Stock Exchange KSE-100 index reported an overall return of only 1.3 per cent since the start 2009.

But the past 5-year average was 15.1 per cent. This is attributed to months of the apprehensions of imposition of a Capital Gains Tax (CGT). But, the picture by now has become clear as the government has announced that CGT will be enforced only gradually and in stages, starting July 1.

Which direction will profitability move by June 30 when the current FY-2010 ends? The equity and financial market analysts are quite upbeat. For instance, JS Global Capital analyst Syed Atif Zafar reports: "We expect corporate earnings to rise 22 per cent in FY-2010, with banking, oil marketing and auto sectors leading the way." The projection is based on results of 38 companies, with 76 per cent market capitalisation of KSE-100 index. The index was at 10,127 points this Friday.

Nine major banks earned cumulative profits of Rs19.4 billion during Quarter-4, October-December, of cy-2009, up from a poor Rs3.8 billion in the like quarter of cy-2008. Although the banks' profitability improved, their business results were unable to push stock prices in general as the sector's market capitalisation increased a meager 1.1 per cent, over a year. The sector's earnings are projected to grow by 17 per cent in 2010 as the amount of provision against NPLs declines, while the credit off-take improves on the back of gradual economic recovery."

The power sector earnings rose by 44 per cent on a yearly basis during this period. The sectors' market capitalisation increased 9.0 per cent, year to date. The sector's sample includes Hubco and Kapco which together reported profits of Rs3.1 billion, up from Rs2.2 billion in the like period of 2008. The sector's growth is projected at 8.0 per cent.

Five key oil and gas corporates reported Q-4 profits of Rs4.7 billion � as compared to a loss of Rs4.6 billion in Q-4 of 2008, when the sector had undergone inventory and foreign exchange losses. At 3.0 per cent, the sector's growth was small, but the projection for the FY-2010 is a 22 per cent growth. Exploration and production sector profitability declined by 5.0 per cent, due to lower wellhead gas prices, despite new production flows.

Larger sales volumes and higher prices improved auto sector profits to Rs650 million in Q-4, up from Rs102 million in Q-4 of 2008.

A 60 per cent growth in earnings is expected in FY-2010.

Cost cutting and improved margins have helped telecom sector profitability which will grow by 24 per cent on an annual basis.

Higher urea and DAP off-take has helped the fertilizer sector. Its projected profitability is to rise 24 per cent on an annual basis.

The refineries witnessed reduced cumulative losses of Rs365 million in Q-4 of 2009, as there were no inventory losses. The losses were Rs3.1 billion in Q-4 of 2008.

Higher sales volume and low retention prices slashed cement sector profitability to Rs230 million, down from Rs1.1 billion in Q-4 of 2008.

The analysts are upbeat over the days to come. "We expect the local equity market to continue its positive momentum in 2010--the market was up 60 per cent in 2009 � best in four years � riding on gradual economic recovery, as evident from the fourth quarter of 2009 corporate profitability." The stocks currently trade at an attractive one-year forward PE of 6.9X, and at a discount of 40 per cent to the average PE of 11.6X of the regional Asian emerging and frontier markets, as defined by the MSCI.

Views expressed by the author are his own and do not reflect the newspaper's policy.

Pakistan's corporate earnings rise as economy looks up

 

[ajpirzada]

Over 90 industrial units start production in SIE



Tuesday, March 30, 2010
By our correspondent

LAHORE: Over 90 industrial units have come into production in Sundar Industrial Estate including multinational, national and local companies. The infrastructure is complete and work has already been initiated on amenity areas as well.

This was disclosed at the first meeting of newly constituted Board of Directors of Punjab Industrial Estates (PIE). As notified by the Government of Punjab in its notification issued recently, the meeting of the new Board of Directors of Punjab Industrial Estates (PIE) was convened at the Head Office of PIE.

The nominated board members participated who were inducted for a fresh term of three years. In its deliberations the board of directors considered various matters including revision of prices at Sundar Industrial Estate (SIE) & Multan Industrial Estate (MIE), in addition to routine matters.

The new directors of PIE Rizwan Khalid But, Tanveer Tariq and Member Punjab Assembly Imran Ashraf also participated in the BOD meeting. It is worthwhile to mention that the number of Board directors has been reduced to 16 from 23 by the Government of Punjab recently.

Over 90 industrial units start production in SIE

 

[Hyde]

Over 90 industrial units start production in SIE

i hope they receive electricity and the industries are not shut next year

Seems like we are doing well in Industrial sector now, i hope their basic requirements are also being cared by the government

 

[ajpirzada]

i cant see any quick improvement in electricity problem. many other industries have already stopped working.

 

[AstanoshKhan]

A little bit about Dr. Abdul Hafeez Sheikh.





Dr. Abdul Hafeez Shaikh was appointed Federal Minister for Privatisation and Investment in April 2003. He is an economist of international repute, who was appointed as Advisor to the Prime Minister on Privatisation & Investment with a status of Federal Minister in December 2002. He was elected member of the Senate of Pakistan in March 2003.

Dr. Shaikh has over 25 years experience in policymaking and management. During 2000-2002 he served in the Sindh Government as Minister for Finance, Planning and Development. He remained country head of the World Bank in Saudi Arabia and also led assignments and advised more than 18 countries of Europe, Latin America, Asia and Africa as a senior World Bank official. Some of these countries include Pakistan, Saudi Arabia, Sri Lanka, Indonesia, Malaysia, Philippines, Thailand, Vietnam, Romania, Czech Republic, Argentina, Bangladesh, Jordan, Qatar, Malta, Botswana, Tanzania and Ghana. Before joining the World Bank, he worked at Harvard University in Cambridge, Massachusetts. He has a Ph. D in economics and authored many publications including a book on ‘Argentina’s Privatisation’. He also led the teams for successful privatization in many countries in the field of telecommunication, electricity, transport, aviation, banking and manufacturing.

Dr. Hafeez Shaikh had a highly successful tenure as Minister for Finance, Planning & Development in Sindh Province. He was the architect of the financial recovery of Sindh, restoring financial discipline and reducing taxes, increasing revenues, paying over Rs. 20 billion of old bills, clearing the over draft of State Bank of Pakistan of Rs. 11 billion, increasing allocation for poverty alleviation, social sector and development, and enhancing relationship of Sindh Government with international donor agencies.

His two years as the Federal Minister for Privatisation & Investment has been the most successful in Pakistan’s history. 18 transactions worth Rs 50 billion have been completed in a transparent fashion in banking, energy and manufacturing sector. Using the slogan of “Privatisation for the People” shares in several companies have been given to 0.4 million people, creating broad ownership for the privatization program. Transactions in telecom, electricity and oil distribution have been brought to an advanced stage of completion. The period has also seen a doubling of FDI and an unprecedented increase in domestic investment.

and his website will be online soon, inshallah.

Dr. Abdul Hafeez Shaikh

I personally wish him best of luck. We do need good intellects in the right places and this is one such example.

 

[Omar1984]

‘Bilateral trade b/w Pakistan, Russia crucial’​

KARACHI: The Consul General of Russia Andry D Demidov said bilateral trade between Pakistan and Russia could pave the way for economic development for both the countries. Russia has suffered due to the global turmoil but the economic situation has improved and Pakistan can gain advantage from the potentials in Russian economy.

He said it during a dinner hosted by M. Farooq Afzal, Chairman Pakistan-Russia Business Council of FPCCI. Tariq Sayeed, immediate past President SAARC CCI & former President FPCCI and the Chief Guest of the occasion Sultan Ahmed Chawla made speeches while M. Mansha Churra and others were also present on the occasion. The Consul General said Pakistan and Russia should exchange delegation and ideas on modern and technical lines that will benefit both the countries. He said Pakistan instead of relying on the US should improve its trade relations with the neighbouring countries like China, Afghanistan, India and Iran including Russia, as Pakistan desperately needs economic assistance to bolster its trade. staff report

 

[Omar1984]

Taking care of circular debt once and for all: Govt to float Rs 100 billion Sukuk bonds in May ​

ISLAMABAD: The Ministry of Finance is planning to float Rs 100 billion Islamic Sukuk Bond in May 2010 to meet its growing financial needs as well as to retire the mounted circular debts before June 30, 2010, official sources informed on Tuesday.

Pakistan Investment Bonds (PIBs) and Sukuk Bonds are in permanent debt and this time the government wants to raise money from Islamic banking system to finance power sector circular debts once and for all, the sources added.

In the initial proposal the Ministry of Finance suggested floating Islamic paper with one-year maturity period. However, now they are considering other options because the central bank is already floating treasury bills with one-year maturity. The non-interest bearing bond launch on the pattern of PIBs and Islamic banks acts as a primary dealer. The cut-off yield of upcoming Sukuk Bond will be equal or slightly above the average 12.7 percent yield of PIBs.

The investment made in the Islamic Bonds (Sukuk) would enable the investors to get a good return on their investment upon completion of the term to be fixed under the scheme.

The government of Pakistan is a sovereign guarantor of upcoming Islamic paper. Finance Ministry official informed a local newspaper that “it’s a reserve backing paper and Islamic banks can keep this paper to fulfil State Bank statutory liquidity requirement.” Islamic banking system has very limited options of interest-free investment. The official sources informed that the circular debt position as of February 2010 was that Pakistan State Oil (PSO) receivables stood at Rs 109 billion and its total liabilities were estimated at Rs 112.52 billion.

According to the details of the PSO’s receivables, an amount of Rs 34 billion is due against WAPDA, Rs 17.32 billion against KAPCO, Rs 33.95 billion against HUBCO, Rs 1.32 billion against PIA, Rs 1.30 billion against Power Holding Company and Rs 9.98 billion that are yet due or are likely to become due in the future.

PSO’s payables to the local refineries included Rs 25 billion to PARCO, Rs 12 billion to PRL, Rs 8 billion to NRL, Rs 15 billion to AR, Rs 4 billion to Bosicor and Rs 0.45 million to others. Some Rs 24 billion are also payables to the local refineries, the official sources further informed.

Payable subsidy: The Ministry of Finance has to pay a subsidy to the tune of Rs 43 billion to PEPCO, Rs 13 billion to Karachi Electric Supply Company, Rs 15 billion on Term Finance Certificates (TFCs) and subsidy on agriculture tube wells and general sales tax is estimated at Rs 13 billion, informed the sources.

“There is an appetite of non-interest bearing paper in the primary market. Islamic banks have low advance deposit ratio and roughly Rs 50 billion liquidity is available in non-interest banking system,” said Invest Cap head of research Khurram Schehzad.

The government borrowing is shifting from the State Bank to commercial banks. Under the International Monetary Fund (IMF) programme, the government is bound to keep State Bank borrowing nil at the end of the quarter. Finance Ministry is working hard to end power sector circular debt by the end of this year. Its official said that the IMF also identified the inter-corporate circular debt in the energy sector as a major issue of Pakistan. The fund has expressed its concern over the failure of the government to resolve it once and for all despite the fact the government has generated twice the amount required to retire the circular debt by marketing its TFCs to the banks. In fiscal year 2008-09, Rs 42 billion was raised from domestic rupee denominated sovereign Sukuk.

 

[Omar1984]

Foreign interest in blue chips pushes KSE 17 points up​

KARACHI: The Karachi stock market witnessed a firm trading session on Tuesday on account of foreign interest in oil and gas and fertilizer sectors.

The Karachi Stock Exchange (KSE) 100-share index gained 17.31 points or 0.17 percent to close at 10,073.77 points as compared to the previous session’s 10,056.46 points. The KSE 30-share index closed at 10,306.65 points with a loss of 26.80 points. The KMI 30 closed at 15,326.23 points with a gain 33.72 points.

Analysts said the market opened in the green zone and this trend remained prevalent throughout the trading session well supported by anticipation of expectations of early resolution of circular debt issue and positive expectations for the release of International Monetary Fund’s 5th tranche next month.

The market turnover went down by 1.00 percent and traded 147.09 million shares as compared with the previous session’s 148.58 million shares. The overall market capitalisation was up by 0.10 percent and traded Rs 2.861 trillion as against Rs 2.858 trillion. Out of total 412 companies, 154 closed in the positive zone, 235 in negative and 23 remained unchanged.

“The market opened on a positive note led by improved sentiments,” said TopLine Sec analyst Farhan Seth. “But investors preferred to book profits later in the session amid news regarding the Supreme Courts’ strong stance over the implementation of the National Reconciliation Ordinance verdict and other political issues.”

However, continued interest in OGDC supported the broader index to close in the green. “Other major factors that supported the market included rise in international oil prices and increase in DAP sales data released by NDFC,” said Shahzad Chamdia Sec senior analyst Ahsan Mehanti. The KSE 100-share index opened in the green zone with a gain of 2.60 points and at the end of the day closed at 10,073.76 points with a rise of 17.30 points.

“While the efforts for sustainability were on, absence of triggers forced the local bourse to erode values,” said Aziz Fida Husein and Co analyst Husnein Asghar Ali. “Positive trend was witnessed early due to low volume price jack-up in blue chips, while second-tier stocks continued to face off-loading.”

Maple Leaf Cement was the volume leader with 13.70 million shares as it closed at Rs 5.02 after opening at Rs 4.74, gaining 28 paisas. staff report

 

[Omar1984]

Expanding network infrastructure, service quality: Telenor Group transfers $80m to Pakistan​

KARACHI: Telenor Group, a Norwegian telecom giant, transferred $80 million to its subsidiary in Pakistan, which will be utilised for expansion of network infrastructure and improvement of service quality in the upcoming months, official sources told Daily Times on Tuesday.

This is one of the biggest investments made by any foreign-based telecommunication company in the country so far in the current fiscal year.

Foreign direct investment (FDI) in the telecom sector has declined to $205.4 million in July to February as compared with the landed investment recorded at $736.9 million in the same period of last financial year, showing a 72 percent decline.

Telenor official said that the investment will be spent on various existing and upcoming projects related to network infrastructure expansion and quality of service enhancement.

Number of cell sites, franchises and other infrastructure related projects will be accomplished in order to improve quality of services and network expansion throughout the country, they added.

As per Pakistan Telecommunication Authority (PTA), Telenor has established more than 6,088 sites including solar energy-run sites by the end of July 2009.

The Norwegian-based cellular phone company is ranked as second having largest subscribers’ base with 23.7 percent share in the overall users’ market. By the end of January, the total number of pre-paid and post-paid subscribers stood at 22.64 million. The company has a network of 250-plus franchises and 150,000 retailers through out the country.

It acquired majority shares of Tameer Microfinance Bank in November 2008 for $12.5 million. Subsequently launched ‘mobile accounts’ recently, a new service as part of easypaisa mobile banking services. Easypaisa was initially launched in October 2009 with bill payment and later added money transfer to its portfolio.

According to the official statistics, more than 600,000 bill payments and more than 175,000 money transfer transactions have been recorded in the last four months.

In 2009, EBITDA (Earnings before interest, taxes, depreciation and amortisation) margins grew to an all-time high of 28.4 percent. It was recorded at 1,055 million Norwegian krone (NOK) in the closing year as compared with 709 million NOK in 2008. It is estimated that Telenor Pakistan would have contributed Rs 20 billion in various forms of direct and indirect taxes to Pakistan’s economy.

Telenor Group is the country’s single largest European investor, with investments in excess of $2 billion, beginning with the acquisition of a GSM licence in 2004 for $291 million.

 

[ameer219]

Index hits 19-month high




RECORDER REPORT


KARACHI (April 02 2010): Bullish trend continued at the Karachi share market on Thursday on the back of strong interest of foreign investors and the KSE-100 index gained another 68.34 points to close at 19-month high level of 10,246.77 points. The improving political situation coupled with positive report of international rating agencies encouraged the investors to take fresh positions aggressively.

After strong positive opening, the index breached 10,300 level after 20 months to hit 10,3314.61 points intra-day high level. Trading volumes however declined to 170.343 million shares as compared to 199.308 million shares traded on Wednesday. The overall market capitalisation increased by Rs 17 billion to Rs 2.907 trillion. Out of total 433 active scrips, 256 closed in positive, 157 in negative while the value of 20 scrips remained unchanged.

TRG Pakistan was the volume leader with 28.935 million shares gaining Re 0.49 to close at Rs 3.83. Jahangir Siddiqui Co inched up by Re 0.18 to close at Rs 21.85 with 10.418 million shares. Azgard Nine increased by Re 0.12 to close at Rs 14.06 with 7.722 million shares.

In the banking sector, NBP and NIB Bank surged by Rs 1.58 and Re 0.12 to close at Rs 69.41 and Rs 4.24 with 7.564 million shares and 4.790 million shares respectively, however Silkbank lost Re 0.08 to close at Rs 3.07 with 8.602 million shares. Lafarge Pakistan gained Re 0.28 to close at Rs 4.88 with 6.365 million shares.

Fauji Fertiliser Bin Qasim and Fauji Fertiliser Co (FFC) increased by Re 0.57 and Rs 3.04 to close at Rs 32.40 and Rs 112.73 with 6.315 million shares and 4.432 million shares, respectively. Lotte Pakistan gained Re 0.13 to close at Rs 11.06 with 5.020 million shares.

Unilever Pakistan and Nestle Pakistan were the highest gainers with Rs 173.42 and Rs 59.96 to close at Rs 3641.94 and Rs 1339.96, respectively while Bata Pak and Dreamworld were the worst losers with Rs 30.90 and Rs 28.00 to close at Rs 684.10 and Rs 560.00, respectively. Ahmed Rauf, an analyst at JS Global Capital said that the local bourse witnessed a rally for the second straight day closing 68 points up, at 10,247 level, a 19-month high.

The investors' confidence strengthened following a major breakthrough last night with political consensus on the 18th constitutional amendment being reached, massive net foreign inflow of $13.1 million on Wednesday and with Moody's statement come in, declaring there were no major threats to Pakistan's sovereign bond ratings in the short-term. PSO was the major beneficiary, closing 1.6 percent up, due to increasing petroleum prices. The cement sector also witnessed a rally, as APCMA released figures showing an increase in both local and export sales.

Business Recorder [Pakistan's First Financial Daily]

 

[ameer219]

'Industrial zone for Turkish investors being set up'



RECORDER REPORT



LAHORE (April 02 2010): Chief Minister Punjab Shahbaz Sharif has said that government of Punjab is establishing an industrial zone for Turkish investors in Faisalabad Industrial City and it has allocated 225 acres of land free of cost to the Turkish investors. He said that recent wave of terrorism has affected the economic and industrial activity but there is a lot of potential for investment in Punjab.

He was addressing Pak-Turk CEO Forum organised by Punjab Board of Investment and Trade (PBIT) in honour of President of Turkey Abdullah Gul on Thursday. While welcoming Turk trade delegation, the CM stressed upon strong trade ties between the two brotherly countries. He said that Turkey has always helped Pakistan in difficult times especially during the earthquake.

He said that Mayor of Istanbul would help Punjab government for the proper disposal of solid waste of the city. He assured that Punjab government would provide all the facilities to the Turk investors who were interested for investing in different sectors in the province.

Speaking on the occasion, Turk President Abdullah Gul stressed the need for strong co-operation between the two countries especially in the field of infrastructure building and energy sector. He said that there is a need for strong efforts from both sides for increasing trade between the countries and business community will play an important role in this regard. He said that the trade volume between the two countries would be increased with starting of cargo-service between the two countries.

Speaking on the occasion, Consultant to Chief Minister Punjab on Economic Affairs and Vice-Chairman and CEO of PBIT Pir Saad Ahsanuddin has said that this is the event that would include reiteration of the trade target of 2 billion dollars by 2012 and outline milestones needed to achieve this goal.

He apprised that the forum would market investment projects in Punjab including an integrated cold chain, coal-based power plants and KSL Motorway. The forum will also highlight the benefits of formulating a trade access plan for Punjab into EU markets through Turkey as Turkey would receive the advantage of Punjab's low cost of production and labour. Ahsanuddin said PBIT has been established to give a boost to Foreign Direct Investment (FDI).

Earlier, an agreement was signed regarding the establishment of Punjab-Turk Zone. The seminar was attended by President Lahore Chamber of Commerce and Industry, Interior Minister Rehman Malik, Provincial Minister Rana Sanaullah, and members of the provincial and national assembly.

Copyright Business Recorder, 2010Business Recorder [Pakistan's First Financial Daily]

 

[ajpirzada]

Pakistan stocks extend gains to end at 19-month high
Fri Apr 2, 2010 5:42pm IST Email | Print | Share | Single Page [-] Text [+]
By Faisal Aziz

KARACHI, April 2 (Reuters) - Pakistani stocks extended gains Friday to close at a new 19-month high as investors were encouraged by the relative political stability and strong foreign portfolio inflows in recent weeks, dealers said.

The Karachi Stock Exchange's benchmark 100-share index .KSE ended 1.66 percent, or 169.74 points, higher at 10,416.51.

It was the highest closing for the KSE-100 since Aug. 20, 2008, when it ended at 10,525.99. The index touched an intraday high of 10,429.99 points.

Volume rose to 205.11 million shares from 170.19 million traded on Thursday.

"There are many reasons to feel encouraged," said Asif Jan Mohamamd, head of sales at brokerage Taurus Securities.

"The market is happy that the constitutional package has finally been tabled, and not to mention the strong foreign inflows, which have definitely boosted sentiment."

The government introduced a constitutional bill in parliament Friday, transferring many of President Asif Ali Zardari's powers to the prime minister and possibly ending months of political wrangling. [ID:nSGE631030}

The set of reforms, known as the "18th Amendment Bill", is expected to be passed by the two-chambered parliament, effectively turning Zardari into a titular head of state.

Dealers said growing political stability, as well as confidence among foreign investors, helped local investors overcome unease about a potentially destabilising stand-off between the government and the judiciary.

Net foreign portfolio inflows stood at $113 million in March -- the second highest monthly inflow ever, after inflows of $127 million in September last year.

In the currency market, the rupee ended lower at 84.40/84.45 to the dollar compared with the previous day's close of 84.23/28.

Dealers said dollar buying for import payments, especially for oil, pushed up the demand for the U.S. currency.

"As anticipated, there has been a rise in dollar demand over the last few days and this is likely to continue in coming days as well, keeping the rupee under pressure," said a dealer at a foreign bank.

The rupee fell to an all-time closing low last month but gained sharply to hit a four-month high last week.

In the money market, overnight rates ended flat at 9.50 percent. Dealers said there were outflows of 62 billion rupees on Saturday, when the central bank is likely to conduct a reverse-repo to inject funds into the market.

"The amount to be injected would probably be lower than the outflows, as there is still some liquidity scattered in the market," said a brokerage house dealer. (Editing by Chris Allbritton)

(For more Reuters coverage of Afghanistan and Pakistan, see: here)

© Thomson Reuters 2010 All rights reserved

Pakistan stocks extend gains to end at 19-month high | Reuters

 

[Hyde]

good news Pirzada saab.......... but it is not just a case in Pakistan only.....peoples are putting trust in the stock exchanges once again....

DOW jones is at its 52 weeks high........ nearly 11000 points
S&P 500 is also at 52 weeks high

Currencies are gaining strenght once again.......... Oil is at 85 dollars today

The world economy is recovering once again

 

[ajpirzada]

ya true. but its not very common for ppl to take interest in pakistani market at least in last two years. so be happy.... lol
we have a lot of risk factor involved. if we could somehow control that, which means political stability and no bomb blasts, we will attract lot of investment. taking steps to increase return should be our medium term strategy.
you must be aware of the risk return model, arent u?