SECP conducts AGMs of Haseeb Waqas Sugar Mills

Posted on 01.26.07 by StockPK Team @ 3:00 pm    

The Securities and Exchange Commission of Pakistan (SECP), in exercise of its powers Under Section 170 (1) of the Companies Ordinance, 1984, on Thursday, convened the overdue Annual General Meeting of the Haseeb Waqas Sugar Mills Ltd for the years 2004 and 2005. The meetings were chaired by Rashid I Malik, Commissioner, SECP.

The company was required to hold the Annual General Meetings (AGMs) for the years 2004 and 2005 on or before January 31, 2005 and January 31, 2006 respectively, however, the Company failed to hold the AGMs. The non-holding of AGMs deprived shareholders of their statutory rights, particularly electing the Board of Directors of the Company. The Commission in the interest of the shareholders called the AGMs and this was also directed by Lahore High Court to move ahead with the holding of the AGMs, as envisaged by SECP.

SECP forms implementation body for CFS Mk II

Posted on 01.26.07 by StockPK Team @ 1:31 pm    

Securities and Exchange Commission of Pakistan (SECP) has notified constitution of “CFS Mk II-Implementation Committee” under the Chairmanship of Shaukat Tareen comprising representatives of the three stock exchanges, the SECP, Mutual Funds Association of Pakistan, stock brokers and bankers.

The Committee has been set up to address issues relating to smooth and early implementation of CFS Mk II.

In order to facilitate transparent and efficient financing for the market, the SECP earlier last year proposed authorisation of direct leverage finance in the form of CFS Mk II by eligible brokers, banks and NBFIs.

KSE joins SAFE to launch South Asian Index

Posted on 01.26.07 by StockPK Team @ 11:31 am    

The Karachi Stock Exchange (KSE) has inked a Memorandum of Understanding (MoU), on Thursday, with South Asian Federation of Exchanges (SAFE) and its member countries to launch a joint South Asian Index in future.

M A Lodhi, Managing Director, KSE, singed MoU on behalf of the local bourse at a press briefing on “SAFE Regional & Pakistan Indices”, held here at KSE premises.

SAFE is an organisation for regional cooperation comprising of nineteen (19) member entities of eight South Asian Countries.

The representatives of Nepal Stock Exchange, Dhaka Stock Exchange and Bombay Stock Exchange, who were also here to participate in a two-day SAFE meeting concluded in the city on Thursday, also signed the said MoU along with KSE.

Client level netting put off for one month

Posted on 01.25.07 by StockPK Team @ 2:19 pm    

The Karachi Stock Exchange (KSE) said in an announcement made in the evening on Wednesday that the implementation of client level netting would now be effective from March 1 for the ready market and from the commencement of April 2007 Contract for Futures Deliverable Market.

The KSE observed that the implementation schedule of the client level netting was reviewed on Wednesday.

“Considering that the necessary IT hardware for installation of the system is not complete,” the KSE said it had delayed the implementation for one month, with the approval of the SECP.

Market sources affirmed that the client level netting was earlier expected to go into operation from Feb 1.

Cement industry in a state of recession

Posted on 01.25.07 by StockPK Team @ 12:18 pm    

The cement industry people say that the current domestic demand leaves a surplus of 15 million tons of cement, and the country has an estimated export potential of 1.2 million tons of bulk cement per annum, as well as 600,000 tons of bagged cement and 1.2 million tons of clinker per annum.

New plants are coming up in various countries and will start production in the next two to three years. Pakistan can make efforts to export three million tons per annum during the next two to three years.

The cement industry, however, ruled out any dent in the domestic prices in case cement exports are enhanced in the future, executive director Lucky Cement, Abdul Razzak Thaplawala said.

ENGRO: POST-BoD ANALYSIS

Posted on 01.23.07 by Tanveer Sultan @ 4:45 pm    

BOARD MEETING:
The Board of Directors (BoD) of Engro Chemicals Limited (Engro) was scheduled for Saturday 20 Jan. 2007 to approve the 2006 full-year results. However the results were announced on 22 Jan. 2007 at 10:00 am. Circumspect though it may seem, bear with me.

2005 DISCLOSURES:Profit after Tax (PAT): Rs. 2, 320 million
Earnings per Share (EPS): Rs. 13.79
Payout: Total cash dividend of Rs. 6

2006 EXPECTATIONS:
PAT: Rs. 2, 350 million, with expected growth of 1%
EPS: Rs. 13.94
Payout: Rs. 4 to 5

ANNOUNCED RESULTS:
Profit: Before taxation = Rs. 3, 444.656 million; PAT = Rs. 2, 547.3 million
EPS: Rs. 15.47
Payout: The company has announced final cash dividend of 30% i.e. Rs. 3 each share while the interim dividend was 60% i.e. Rs. 6 each. This makes the total of 90% i.e. Rs. 9 each share for the year 2006.

Engro announces cash dividend

Posted on 01.23.07 by StockPK Team @ 3:15 pm    

Engro Chemical Pakistan has announced, on Monday, a final cash dividend at Rs3 per share (i.e. 30 per cent) for the year ending on December 31, 2006. It was in addition to the already paid interim dividend at Rs6 per share (i.e. 60 per cent).

Therefore, the cash dividend of the entire year totaled to Rs9 per share (i.e. 90 per cent). The profit after tax of Engro Pakistan stood at Rs2.55 billion which is a new record for the company and is higher by 10 per cent over the year 2005 profit of Rs2.32 billion. The higher profit was principally due to higher urea volumes because of better production and capital gain of Rs131 million on sale of land to Engro Asahi, said a press statement.

IPO of OGDCL oversubscribed

Posted on 01.23.07 by poster @ 2:00 pm    

The secondary public offering of Oil and Gas Development Company Ltd (OGDCL) shares has been oversubscribed by 38 per cent, Privatisation Commission statement said on Monday.

According to details, the applications for the secondary offering of OGDCL shares is oversubscribed by 38 per cent as the applications received amounted to Rs3.268 billion while the amount required to be realised through this offering was Rs2.365 billion. The number of applications received are 34,758 comprising 33,715 applications for 500 shares and 1,043 applications for over 500 shares.

All applications for 500 shares will be accommodated. Applications of over 500 shares will be allotted on pro-rata basis. The shares will be transferred to the successful applicants within 30 days after the balloting which is scheduled to be held on January 23, 2007.

The (Passed) Winds of Change - Part 2

Posted on 01.23.07 by Tanveer Sultan @ 11:06 am    

Again, here’s my take on the news. I think the three more important ones, that directly pertain, hence affect, the Karachi stock exchange, are:

1. The release that Prime Minister Shaukat Aziz is to postpone the decision to levy Capital Gain Tax for the next year.
2. The Sindh Government’s decision to discontinue stamp duty on electronic transfer of shares. [This proposal was in the last budget (June 2006). The duty was Rs. 0.01 per share.]
3. The opposition and disfavor of the Public Accounts Committee toward the privatization of Pakistan State Oil (PSO).

The (Passed) Winds of Change: Part 1

Posted on 01.22.07 by Tanveer Sultan @ 3:30 pm    

The reports by the agencies below that came around mid-December have been issued pertaining to our present economic condition and a look into the future. SBP primarily touted foreign investments for last half year, drooling from the prospects of privatizations in the couple of years to come. And, as usual, there was some news directing the path of KSE. Let’s have a brief look on the reports first.