Index suffers sudden fall after KSE notification

Posted on 11.18.06 by StockPK Team @ 8:11 pm    

Closing bell restored indices in red at the Karachi stock market following a KSE notification requesting its members to furnish information regarding in-house badla and ensure placing of shares in CDC blocked account with immediate effect on Friday.

The said notification attracted fresh waves of negative sentiments to the stock exchange that resulted in plummeting KSE 100-share index by 144.17 points to 10,705.87. While junior 30-index plunged 109.07 points to 13,219.99.

Brokers passed on their head itch to the investors, who came in panic in closing hours of the twin trading weekend sessions and sold off their intra-day purchasing and early holdings at buyers’ offer.

Exploring the World of Day Trading

Posted on 11.18.06 by StockPK Team @ 11:00 am    

Are you looking into a career in day trading? In the past, the tools for day trading were available only to professionals. But thanks to the power of the Internet, everything you need to get started is now conveniently online. If you have a nose for business, guts and a sharp instinct for how the market shifts, the maybe day trading is the job for you.

What is day trading? Basically it is daily, online stock trading with very short investment. The individuals who do this day in and day out are called traders, not investors in the traditional sense. A day trader is someone who will buy a stock that has high volume and liquidity and will sell that same stock within a few minutes up to a few hours.

Focus Your Investments on the Long Term

Posted on 11.17.06 by StockPK Team @ 11:00 am    

“All human power is a compound of time and patience!” Honore de Balzac (1799 - 1850)

Long term investing or “Buy and Hold” is not about hunches, emotions, stock tips, market timing or making quick profits! It’s about using proven long-term strategies to accumulate wealth over time!

A large part of the daily volume on the exchanges is due to traders who hope to make a small profit by taking advantage of small discrepancies in the pricing of securities, or who are able to buy a stock as soon a favorable analysts report is issued and who hope to profit before the inevitable runup.

Discover the Biggest Trading & Investing Online Mistake

Posted on 11.16.06 by StockPK Team @ 11:00 am    

Any online investor / trader seeks an excellent off or online future trading career opportunity. Despite this goal, did you know 95 percent of all traders go broke within the first two months? Why do investors lose vast amounts of wealth in one or more of the following markets – option trading, forex trading or currency trading, stock trading, future or commodity trading etc… in such a short amount of time?

Bosicor gets Rs2.6bn financing

Posted on 11.15.06 by StockPK Team @ 12:59 pm    

A consortium of banks has arranged a syndicated term finance facility (TFC) of Rs2.6 billion for several expansion projects of an oil refinery Bosicor Pakistan Limited (BPL).

In this regard, a deal was signed between the banks and BPL to mark the financial close here on Tuesday.

United Bank Limited (UBL) and Allied Bank Limited (ABL) are the lead advisor and arranger to the syndicated TFC while Bank Alfalah Ltd and Faysal Bank Ltd Saudi Pak Commercial Bank, KASB Bank Limited, Pak Oman Investment Company Limited, Soneri Bank Limited, Pak Libya Holding Company Limited and Habib Metropolitan Bank Limited are other partners of the syndicate.

Six Principles of Successful Investing

Posted on 11.15.06 by StockPK Team @ 11:00 am    

Here are six principles of successful investing, by the pros:

1. Begin investing immediately

Procrastination is the number one enemy of investing. An early start in investing can make an enormous difference as the investor will be able to truly reap the rewards of compounding over a longer period of time.

2. Invest for the long-term

Do not be influenced by short term market fluctuations. These are inevitable. Over the longer term, investments increase in value.

3. Appetite for risk

Your appetite for risk determines the type of investor you could be. The younger you are, the more aggressive you can be in your investment strategy. You could undertake a greater amount of risk. It also depends upon your personality profile.

Foreign investment in bourses declines

Posted on 11.14.06 by StockPK Team @ 5:22 pm    

A 12 per cent decline has been registered in foreign portfolio investment in stock exchanges in just about one week, showing a withdrawal of $41 million through special convertible rupee account (SCRA).

According to data released by the State Bank of Pakistan (SBP), foreign investment now stands at $298.768 million, down from $320.593 million which was registered on November 7, 2006. A major withdrawal of investment was witnessed on November 7, when foreign investors mainly from the UK and the US resorted to net outflow of $20 million in one day due to variety of reasons.

15pc OGDC shares to be sold by December

Posted on 11.14.06 by StockPK Team @ 4:19 pm    

Pakistan will complete the sale of 15 per cent shares in Oil and Gas Development Company Limited (OGDCL) through Global Depository Shares (GDSs) and secondary public offering till December this year.

The Privatisation Commission (PC) on Monday announced that Global Depository and Ordinary shares are likely to be offered by next week. The offer will represent up to 15 per cent of the share capital of OGDCL, comprising up to 645,139,000 shares.

The offer consists of (a) an institutional offering of up to 532,939,000 shares, in the form of ordinary shares to institutional investors in Pakistan on local bourses and GDSs to international institutional investors, including Qualified Institutional Buyers in the United States under Rule 144A, and (b) a retail offering of up to 32,300,000 ordinary shares to private investors in Pakistan, the Commission said.

The Secret Art of Backtesting

Posted on 11.14.06 by StockPK Team @ 10:00 am    

If you have not back tested your trading system, you might as well trade with your eyes close.

In fact, whatever technical analysis criterion you use to trade with, be it moving averages, candle sticks, volatility breakouts, fibonacci retracements or any other trading system you have devised you’re going to need to back test your trading system thoroughly and objectively in order to remove any possible doubt about it’s capability.

To remove any self-doubt you need to thoroughly back test or simulate your trading system in such away that it matches the conditions under which it will be traded. Once you have established that you have a reliable and robust trading system only then will you be confident in trading your system.

New risk management measures

Posted on 11.13.06 by StockPK Team @ 5:37 pm    

The stock market went down last week, but not due to changes in the margins regime that seems to have taken the back seat. This article is about the new risk management measures, which are likely to haunt the market after some time if not in the immediate future.