Despite the continuation of investor-friendly policies and a decent growth in corporate earnings, the local capital market remained slow in terms of attracting new listings compared with the previous year.
The calendar year 2006 was a depressing year in terms of Initial Public Offerings (IPOs). While the performance of the market is primarily examined by the index change, the growth of capital market can be determi [...]
Posted in News
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Tagged IPO, Kapco, OGDC, PIA, PPL, SSGC, UBL
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In the past, the term “widows and orphans” was used to describe stocks with a relatively high degree of safety and dividend income. Because they had relatively minimal risk and provided income to feed the family, these kinds of stocks were literally thought to be the only investments suitable for widows and orphans. The term is noteworthy because it was generally used during market bottoms, but today it [...]
State Bank of Pakistan on Wednesday suggested to policy makers that badla financing in share markets be completely “removed with better risk management tools”.
It further said, “few (stock) brokers can still manoeuvre the market.”
Releasing its annual review of performance of financial markets-2006, the central bank said the March 2005 crisis hints towards market manipulation.
Though number of investors has [...]
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Tagged Badla, CFS, SBP
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Investing has always been a little like surfing. Successful investors spot key investment themes (waves) and ride them to profits. Sometimes the waves are shorter and smaller than we had expected. Other times the wave takes on a mind of its own and falls under its own weight. The hardest but most profitable thing to do is to be the lone rider of a wave that others have abandoned for the “next best thing” [...]
Posted in Articles
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Tagged Stocks
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One of the tenets of Benjamin Graham, the father of value investing and Warren Buffett’s mentor, was “margin of safety”. Conditions may arise in the market place where the price of a security may be purchased at a price less than even a cautious estimate of it’s intrinsic value. The greater this disparity becomes then the greater the “margin of safety”.
The price to book ratio m [...]
Every company games the numbers to a certain extent to achieve budget and get bonuses. This is nothing new. But two things make the here and now different for us. First, our money is the issue (history is always about other people’s money). Second, these are BIG numbers.
Enron, Aldelphia and WorldCom are extreme examples. They are the few bad apples that get all the headlines. I believe that people with bet [...]
There is nothing inherently wrong with short selling, which is permissible under the regulations of the Securities & Exchange Commission (SEC). But the short-and-distort type of short seller uses misinformation and a bear market to manipulate stocks. Short and distort is as illegal as the pump and dump, but is mainly used in a bear market. It is important for investors to be aware of the dangers and to know how [...]
There tends to be a lot of talk about “investor capitulation” when stocks continue to tank. But what is meant by capitulation in Wall Street terms and what does it mean for future stock trends? This article will discuss both.
Capitulation is defined in the American Heritage Dictionary as the following:
capitulation (n)
1. The act of surrendering or giving up. Surrender.
2. A document containing the term [...]
In the Stock Market, the bulls and bears are in a constant struggle. If you haven’t heard of these terms already, you undoubtedly will as you begin to invest.
The Bulls
A bull market is when everything in the economy is great, people are finding jobs, GDP is growing, and stocks are rising. Things are just plain rosy! Picking stocks during a bull market is easier because everything is going up. Bull markets ca [...]
Chairman Securities and Exchange Commission of Pakistan Razi-ur-Rehman has said that reinvestigation report against top five brokers would be presented before the National Assembly Standing Committee on Finance by the end of this month.
Talking to media men at SECP’s regional office here on Wednesday, he said that investigation against 88 brokers has been reinitiated which would be presented before NA Standing Co [...]
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Tagged KSE, SECP
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