LSE okays MCB Islamic Income Fund’s listing

Lahore Stock Exchange (LSE) has approved the application for formal listing and quotation of the units of MCB Islamic Income Fund, an open-end fund managed by MCB Asset Management Company Limited.

The Fund will be quoted under open-end fund sector of the Ready Board Quotation of the Exchange w.e.f. June 23, 2011. The investment objective of the MCB-Islamic Income Fund is to generate superior risk-adjusted returns by investing in short, medium and long-term Shariah compliant fixed income instruments.

From: Daily Times

LSE seeks full-fledged settlement guarantee system

The Lahore Stock Exchange (LSE) has demanded the National Clearing Company immediately introduce the settlement guarantee system in Pakistan to cover the counter party risk resulting from lack of commitment by any of its clearing members for smooth settlement operations for a whole range of market instruments.

In a letter addressed to the National Clearing & Settlement Company (NCCPL)—the central clearing and settlement company established in Pakistan during 2003—LSE has stated that since the inception of the NCCPL, no such central counter-party mechanism with full settlement guarantee has been established whereby it could be possible to meet the obligations of failing members from within the resources created by the NCCPL.

ICI Pak board decides to separate paint business

The board of directors of ICI Pakistan has decided to split the company into two entities, both of which will be listed on Karachi, Lahore and Islamabad Stock Exchanges. According to ICI communique sent to KSE here Wednesday, the paint business will go to Akzo Nobel Pakistan Limited while ICl Pakistan Limited will retain all other businesses of ICI Pakistan).

The board also decided that separation of the paints business should be achieved through a de-merger, sanctioned by the Court of law.

LSE enlists formally two HBL Funds

Lahore Stock Exchange (G) Limited here Wednesday formally enlisted and quoted the units of HBL (Habib Bank Limited) -Islamic Money Market Fund and HBL- Islamic Stock Fund (Open end Funds managed by HBL Asset Management Limited).

The Funds were quoted under ‘Open-end Fund’ sector of the Ready Board Quotation of the Exchange, and in this regard a briefing was organised by the Bank.

The investment objective of the HBL-Islamic Money Market Fund is to seek high liquidity, competitive return and maximum possible preservation of Capital for investors by investing in low risk Shariah Compliant securities.

What Happens When Beasts Roam the Earthen Markets

Needless to say, a stock market is a very interesting playground; things change quite quickly and decisively. A few days ago we saw a bearish trend in the market and now the trend has changed to bullish. These were the levels and prices where everyone was selling and leaving the market; now, everyone’s back on the wagon again, everyone wants to buy and make money.

Last week the bullish trend continued. The Index crossed 11,000 points once again. There was an overall increase in 464 points in KSE-100 index. Though it was the last week of January trading, buying was strong in that it did not affect the pursuant bullish trend. On Wednesday and Thursday, the Index increased by 150 and 175 points respectively.

Subscription for OGDCL shares opens

The three-day subscription for Oil and Gas Development Company Limited’s 21.505 million ordinary shares will open from Thursday.

This offer is being made at a price of Rs110 per ordinary share of Rs10 each, inclusive of a premium of Rs100 per share, but excluding the share transfer fee.

Application for shares must be made for 500 shares or in multiples of 500 shares only.

The minimum amount of application for subscription of 500 shares is Rs55,075 in case of physical transfer and Rs55,005 in case of transfer under the book entry system.

Unified trading at LSE, ISE from Dec

The Lahore Stock Exchange (LSE) has planned mock trading of Unified Trading System (UTS) by the end of current month.

“The UTS would be a common platform for trading in commonly-listed securities on a real-time basis through execution of orders entered by members of Lahore and Islamabad Stock Exchanges,” said Hamid M Imtiazi, Managing Director, LSE, while speaking at a press conference here on Tuesday.

He informed that computerisation work has already been completed at the LSE in this regard while integration of UTS with ISE was being made.

CFS limit raised to Rs 55 billion: VaR implementation delayed

After a detailed meeting with the stock exchanges management, the Securities and Exchange Commission of Pakistan (SECP) on Thursday enhanced the CFS limit to Rs 55 billion for Karachi Stock Exchange (KSE); Rs 10 billion for Lahore Stock Exchange (LSE) and Rs 5 billion for the Islamabad Stock Exchange (ISE) from November 6.

It also delayed implementation of value at risk (VAR) management system till December 4. It was also due to come into effect from November 6. The SECP and stock exchanges management also reached an amicable solution to VAR management system and institutional margining. The SECP team was headed by its chairman, Raziur Rehman Khan. He was assisted by securities market division commissioner Rashid I. Malik.

CFS cap raised to Rs55bn, badla banned

Continuous Funding System (CFS) cap has been enhanced to Rs55 billion from Rs24.5 billion for Karachi Stock Exchange.

The new CFS cap for Lahore Stock Exchange has been enhanced to Rs10 billion and Rs5 billion for Islamabad Stock Exchange, with effect from October 2, 2006. The decision was announced following a meeting between SECP and management of three exchanges here on Monday.

Reviewing the August 02, 2006 decision taken by SECP, the meeting observed that work on SECP’s proposal regarding CFS MK II was underway. However, to improve the risk management system and reduce the systemic risks associated with the existing CFS as well as in-house badla financing, it was important to take certain measures in the interest of the market for an interim period, a statement issued by SECP said.

Stocks futures decline

The stocks futures open interest at Karachi Stock Exchange fell during last week, and settled at Rs 15.3 billion on Friday, December 16, as selling in some scrips forced the investors to offload their positions.

Futures contract investment fell by Rs 0.75 billion from previous Friday’s (December 9) open interest of Rs 16.04 billion. The decline in open interest was caused by intra-day corrections during the week where equity prices used to rise in the early part of the trading session, only to see a great chunk of those gains wiped off by the end of the trading session.