CFS cap raised to Rs55bn, badla banned

Posted on 09.12.06 by StockPK Team @ 10:47 am    

Continuous Funding System (CFS) cap has been enhanced to Rs55 billion from Rs24.5 billion for Karachi Stock Exchange.

The new CFS cap for Lahore Stock Exchange has been enhanced to Rs10 billion and Rs5 billion for Islamabad Stock Exchange, with effect from October 2, 2006. The decision was announced following a meeting between SECP and management of three exchanges here on Monday.

Reviewing the August 02, 2006 decision taken by SECP, the meeting observed that work on SECP’s proposal regarding CFS MK II was underway. However, to improve the risk management system and reduce the systemic risks associated with the existing CFS as well as in-house badla financing, it was important to take certain measures in the interest of the market for an interim period, a statement issued by SECP said.

Pakistan to start new options in securities

Posted on 09.09.06 by StockPK Team @ 10:00 pm    

The federal government intends to start three new options ie call, switch and swap in its securities.

Sources of banking industry said that by starting these three new options in both federal as well as provincial securities, institutional investors, both local and foreign, will be lured to make investment.

India by changing its Security Act of forties, 4 years ago had created depth and widened investment scope in its union securities.

The initiative of Indian government also led to investment in union securities by overseas Indians.

CDC out to lure investors from UAE

Posted on 09.09.06 by StockPK Team @ 7:50 pm    

The Central Depository Company (CDC) of Pakistan Limited will host road shows to promote investment in the Pakistani capital markets at Abu Dhabi and Dubai on September 18 and 20 respectively.

These road shows intend to offer new avenues of investment in one of the region’s best performing stock markets. The events are being held with the support of the Pakistan Business Council of Abu Dhabi.

These events aim at informing and updating potential investors on the economic climate of Pakistan, the various investment options available in the Pakistani stock market and the functions of CDC as an infrastructure service provider to facilitate investment in the capital market. The forum would also address any queries and concerns of the business community of the UAE.

MCB Bank plans $150m GDR

Posted on 09.08.06 by StockPK Team @ 12:00 pm    

MCB Bank Ltd, Pakistan’s second-largest listed bank, said on Thursday it was preparing a global depository receipt (GDR) sale in London worth up to $150 million.

MCB, which ranks behind National Bank of Pakistan on the Karachi Stock Exchange (KSE) with a market capitalisation of about $1.9 billion, will start pre-marketing the offer later this month.

That timetable could beat to the market a potentially larger London issue by Oil and Gas Development Company Ltd (OGDCL), which plans to list between 10 and 15 per cent of the $9 billion oil firm as a GDR by the end of the year.

SBP creates 4-tier administrative system

Posted on 09.08.06 by StockPK Team @ 9:57 am    

The State Bank of Pakistan on Thursday announced creation of new four-tier administrative system.

The new administrative system of the central bank will create financial markets and reserve management cluster under which there will be a banking finance group, which will focus on high priority credit sectors such as infrastructure financing, housing finance, Islamic banking, SME and microfinance.

Governor SBP for the last few months has been trying hard to start infrastructure financing in the country and in this regard it is expected that state-controlled Industrial Development Bank (IDBP), by turning it into new banking entity, will be sole financial institution for infrastructure financing in the country.

Investors waiting for forensic probe report : Stock crisis of March 2005

Posted on 09.07.06 by StockPK Team @ 11:00 am    

Investors in stocks, who lost their life-time savings during the stock market crisis of March 2005, are eagerly awaiting the forensic investigation report.

In early July three forensic experts from the US were called in to assist a team of Security and Exchange Commission of Pakistan (SECP) officials and foreign auditors in uncovering the trails of the financial fraud, if one had actually been committed.

Seven to eight weeks have gone by since the experts were commissioned to finish the job in 10 to 12 weeks. But there is still a deafening silence on all fronts. No one knows what’s going on and how far there has been a progress. No one is quite sure even of the ‘terms of reference’.

Standard Chartered acquires Union Bank

Posted on 09.06.06 by StockPK Team @ 9:21 am    

Standard Chartered PLC announced on Tuesday that its subsidiary company, Standard Chartered Bank (Pakistan) Limited, has completed the acquisition of 95.37 per cent interest in Union Bank Ltd.

The bank said it had paid an amount of $487 million for the purchase of Union Bank.

Pursuant to the acquisition, Standard Chartered Bank will submit a scheme of amalgamation to the State Bank of Pakistan. On approval, Union Bank and Standard Chartered Bank would amalgamate into Standard Chartered Bank (Pakistan) Ltd, said a press release issued by the bank.

ABN AMRO to acquire PICIC Group

Posted on 09.05.06 by StockPK Team @ 2:33 pm    

Pakistan Industrial Credit and Investment Corporation (PICIC) is preparing for a complete sell-out and ABN Amro has shown interest in the group.

The current wave of foreign investments in the financial sector of Pakistan could take a new turn if the PICIC like institutions are sold to an international bank.

“We have information that ABN Amro has shown interest and initiated a dialogue with the PICIC officials,” said a highly-placed banking source.

However, no official confirmation was available from both the entities involved in the initial talks for a possible deal.

Buying in cement averts big losses at KSE

Posted on 09.04.06 by StockPK Team @ 10:37 pm    

Buying in cement and some notable scrips averted big losses at the Karachi stock market on Monday as the KSE 100-share index lost 45.97 points, but maintained 10,100 level amid slightly increased turnover of 180.229 million shares.

The market capitalisation fell by Rs13 billion to Rs2.835 trillion. It is pertinent to mention here that the newly introduced KSE 30-index fell by more points (72.88 points) as compared with the 100-index, pointed out an analyst, adding that 30-index was not depicting true trading picture, but showing weightage of some monopolised scrips that were misguiding true investors. The 30-index was showing big ups and downs as compared to the earlier working indices at the KSE, he added.