Failed coup widens gulf between bourse, SECP

Posted on 02.21.07 by StockPK Team @ 1:40 pm    

The issue of the removal of MA Lodhi, Managing Director of Karachi Stock Exchange (KSE) that ended up with his hard victory, has once again raised the question of transparency at the local bourse and sparked the tension between the SECP nominated non-members directors and KSE elected member directors on board.

The allegations that the Securities and Exchange Commission of Pakistan (SECP) nominated directors pinned on MD was that he was not performing his duties efficiently. They explained that the sitting MD earlier failed to manage the Callmate Telips Telecard Limited (CTTL) crisis that took place a couple of months back. It was not for the first time the issue like CTTL emerged at the local bourse, they explained.

Cement manufacturers asked to cut prices

Posted on 02.21.07 by StockPK Team @ 12:39 pm    

The federal government on Tuesday warned the cement manufacturers that if they did not reduce prices within one week, they would have to face the music.

The cement price issue was discussed in a meeting between the federal government officials and cement industry tycoons here, but it apparently failed to yield any positive results.

The meeting was attended by the chairman All Pakistan Cement Manufacturers Association, All Pakistan Contractors Association, Association of Builders and Developers and government high-ups.

Govt may withdraw deposits if banks levy service charges

Posted on 02.20.07 by StockPK Team @ 1:07 pm    

The government may withdraw its deposits, in billions, from different commercial banks to avoid the anticipated levy of service charges, it is learnt.

At the moment, the finance ministry is contemplating upon various options, including withdrawal of billions of rupees deposits, from the commercial bank to bar them levying services charges on accounts holders of 1.5 million public sector employees.

All officials in the finance ministry were reluctant to say anything on the record on this subject. When spokesman of the State Bank of Pakistan, Syed Wasimuddin, was contacted on his mobile for comments, he said that the central bank would oppose any move for levying services charges on account holders of the public servants in view of its existing circular.

Banks propose changes in prudential regulations

Posted on 02.20.07 by StockPK Team @ 12:07 pm    

Banks want to impose 30 percent margin on listed companies share financing. Besides this banks want their exposure in share markets to be protected by imposing eight new safeguards.

Sources of banking industry said on Monday that keeping best international practices in view the banks have drafted five major changes in prudential regulations meant for share markets of the country.

Sources said the proposed regulation number R-41 reads: Exposure against the shares of listed companies shall be subject to minimum margin of 30 per cent of their current market value.

Merrill Lynch bullish on Pakistan

Posted on 02.18.07 by StockPK Team @ 3:57 pm    

“Sell Indonesia, buy Pakistan”, the international financial services firm, Merrill Lynch (ML) recommends Pakistan, Sri Lanka, Vietnam and Mongolia as ‘new frontiers’ in their latest regional investment strategy report released on Thursday (Feb 15).

Among the four countries, Spencer White, the strategist who prepared the report says: “Pakistan remains one of our highest conviction overweight recommendations”. He reasons that the on-going economic reforms remains a core priority and that it should sustain high economic growth and lead to further financial stability, something which ML “feels the market has under-appreciated”. Best exposure to Pakistan has been recommended on rural expansion focus companies, which ML identifies as Adamjee Insurance; MCB; United Bank and Fauji Fertiliser Bin Qasim.

KAPCO announces 30pc dividend

Posted on 02.17.07 by StockPK Team @ 2:42 pm    

Kot Addu Power Company (KAPCO) managed to announce an interim cash dividend of Rs3 per share (i.e. 30 per cent) for the first half of fiscal year 2007 ending on December 31, 2006, on Friday, despite of a decline the Company registered in its net income.

Net income of the company posted a decline of 42 per cent to Rs2.3 billion (EPS Rs2.6) from that of Rs4.0 billion (EPS Rs4.6) for the period mentioned above.

Decline in earnings mainly ensued from application of corporate taxation and falling debt profile leading to lower principal repayment, Faraz Farooq of JS Research said.

PSO may post lower earnings

Posted on 02.16.07 by StockPK Team @ 3:00 pm    

The Pakistan State Oil (PSO) is expected to post sharply lower first-half profit as falling global prices offset stronger sales. State-run PSO, which is earmarked for partial privatisation in March, is likely to see further earnings pressure in its second half if world energy prices remain soft. The government has long planned to sell a 51 per cent stake in PSO, which controls almost 65 per cent of petroleum marketing business in the country. But the transaction has been postponed repeatedly because of lukewarm interest from buyers. However, investor interest has been healthier this time, raising hopes of a successful sell-off. The PSO is expected to post a net profit for its July-December first half of between 1.35 billion rupees and 1.97 billion rupees ($22.2-32.4 million), according to a range of forecasts from five analysts surveyed by Reuters. The firm, which has a stock market of just below $1 billion, earned Rs3.35 billion in the same period last year. It will release its results on Feb 22. As Pakistan’s top oil marketer, PSO has the largest oil product inventories, making it more susceptible to price falls.

Shell declares loss in Q2

Posted on 02.16.07 by StockPK Team @ 1:10 pm    

Shell Pakistan on Thursday posted a net loss of Rs152 million for second quarter of fiscal year 2007 with a translated loss of Rs2.78 per share following a slump in international oil prices. However, the board of the company approved payment of an interim dividend for the year ending June 30, 2007 at Rs8 per share. “This quarter also saw full impact of reduced unit margins as a result of revision in the government’s pricing formula earlier this year,” the company said in a letter to Karachi Stock Exchange. The announcement of loss against a profit of Rs210 million during the same period of previous year coincided with the press conference of Zaivji Ismail, Chairman, Shell Pakistan. “Most important thing for a company is to remain robust,” he said and emphasised that the international oil marketing firm was enjoying very robust operations. Unveiling a plan to spend Rs3 billion on expansion of retail network, he said the company was also focusing on CNG business.

Removal of MD: heated debate in KSE board meeting

Posted on 02.16.07 by StockPK Team @ 12:32 pm    

KSE Board meeting held on Thursday ended in chaos, source told The News. Board of Directors (SECP nominated and KSE elected) failed to reach any consensus regarding the removal of incumbent KSE-MD, M A Lodhi, which was the only agenda of the meeting.

Meeting lasted for six hours commencing at 2:30 pm and culminating at around 08:30 pm. On can measure the intensity of the issue with the time span that meeting consumed, but ended up with zero sum game.

Zafar A Khan, Chairman-KSE, preferred not to talk on the issue and switched off his mobile without responding to the queries about the outcome of the meeting. But, before switching off his mobile he completed the sentence “you better talk to KSE-Secretary.”

Corporates announce dividends

Posted on 02.15.07 by StockPK Team @ 12:29 pm    

Board of Directors of Hub Power Company on Wednesday, recommended an interim cash dividend of Rs1.25 per share (i.e. 12.50 per cent) for second quarter ending on December 31, 2005.

Board announced the interim dividend after its meeting held at London on Tuesday.

Interim dividend will be paid to shareholders whose names appear in the Register of Members at the close of business on March 14, 2007. The Share Transfer Books will remain closed from March 15, 2007 to March 26, 2007 (both days inclusive).

The Company net profit for the period shrank to Rs526.049 million from Rs628.674 million for the corresponding period of 2005.