Index suffers sudden fall after KSE notification

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.

KSE announces top 25 companies

The Karachi Stock Exchange has announced names of 25 top companies, which have been selected for best performance award for the year 2005. The date for the award giving ceremony is yet to be announced, depending on the availability of Prime Minister Shaukat Aziz.

These 25 top companies are: Unilever Pakistan Limited; Siemens Pakistan Engineering Co. Limited; Rafhan Maize Products Limited; Shell Pakistan Limited; Clariant Pakistan Limited; Al-Ghazi Tractors Limited; Engro Chemical Pakistan Limited; Fauji Fertilizer Company Limited; Arif Habib Securities Limited; Pakistan State Oil Company Limited; International Industries Limited; Nestle Pakistan Limited; Lakson Tobacco Company Limied; Colgate – Palmolive Pakistan Limited; MCB Bank Limited; Ferozsons Laboratories Limited; Atlas Insurance Limited; Century Paper & Board Mills Limited; Dawood Hercules Chemicals Limited; Pakistan Premier Fund Limited; Oil & Gas Development Company Limited; Clover Pakistan Limited; Crescent Steel & Allied Products Limited and Security Papers Limited.

CDC asked to deposit stamp duty

Central Depository Company (CDC) was not providing required details of Deposit Transactions to the Board of Revenue, Government of Sindh, so that the amendments in the Stamp Act 1899 to cover electronic transactions be materialised.

In a prompt action, Board of Revenue asked CDC to recover the stamp duty and deposit the same under the head of “stamp duties” in the National Bank of Pakistan entitled branches in the larger national interest.

Chief Inspector of Stamps, Board of Revenue, Sindh, Karachi, in a letter addressed to the Muhammad Hanif Jakura, Chief Executive Officer of Central Depository Company (CDC) on September 09, 2006, said that he was not giving his response regarding the amendment in the Stamp Act 1899 to cover electronic transactions.

CDC out to lure investors from UAE

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.

More financing modes available at bourses

Investors at capital market after reaching the limit under Continuous Funding System (CFS) have more avenues to finance shares to purchase, like in-house badla, futures options and other derivatives, soon to be formulated.

After being effective from August 22, 2005, the CFS in 14 scrips has reached its upper limit of Rs 25 billion.

The response of the market to the announcements made after the meeting of brokers, SECP and Prime Minister, which included launching of CFS, launching of Pre-Trade Verification System and increased tenors for future contracts, was very positive and the KSE-100 index gained 278 points, with trading volumes increasing by 69 percent on day-to-day basis from less than 200 million to over 300 million shares.

CDC ends group account facility

In compliance with the directive from Securities and Exchange Commission of Pakistan (SECP), the Central Depository Company (CDC) has announced closure of its ‘Group Account’ facility with effect from May 1, 2005. This is an important milestone in implementing the reform agenda laid down by the SECP aimed at achieving absolute transparency in settlement mechanisms. Group Accounts, commonly known as ‘Baynaami’ accounts, were used for keeping securities of the clients who did not want to disclose their identity. This measure would go long way in moving towards proper documentation of capital market dealings as there has been a persistent effort to bring about transparency and credibility to the market over the years.

CDC ends group account facility

In compliance with the directive from Securities and Exchange Commission of Pakistan (SECP), the Central Depository Company (CDC) has announced closure of its ‘Group Account’ facility with effect from May 1, 2005. This is an important milestone in implementing the reform agenda laid down by the SECP aimed at achieving absolute transparency in settlement mechanisms. Group Accounts, commonly known as ‘Baynaami’ accounts, were used for keeping securities of the clients who did not want to disclose their identity. This measure would go long way in moving towards proper documentation of capital market dealings as there has been a persistent effort to bring about transparency and credibility to the market over the years.

Test trading session finds LSE and ISE ready for merger

Lahore Stock Exchange (LSE) and Islamabad Stock Exchange (ISE) have jointly conducted a successful mock-trading session here on Saturday. The information technology (IT) experts of the exchanges said the operational capacity and system topology were measured and subsequently found satisfactory. The successful completion of mock-trading session has further strengthened the merger scheme of two bourses. Now, the ISE and LSE both were technologically ready for merger, experts added.

Meanwhile, the ISE Chairman Abdul Waheed Jan told this correspondent the board meeting would be held on March 16 to give formal approval to the merger of ISE and LSE. Both the exchanges had already agreed on setting up of a new company to promote integration of stock exchanges in the country.