Analysts suggest caution as KSE touches 9-month high

The outgoing week (February 06-09) is the seventh in sequence of closing the Karachi bourse on positive note. However, the process of much awaited technical correction was initiated on weekend.

KSE 100-Index moved ahead by another 255.01 points on week-on-week basis and closed above nine-month high record at 11,844.65 points despite of the bearish resistance it faced during week.

To calculate the future movement of the benchmark, it is worth mentioning here that 100-Index breached through 12,000 points on aggressive buying on Friday, but market failed to sustain this level. Corrections reversed the earlier gains after touching 12,047.72 points peak level this week.

The (Passed) Winds of Change – Part 2

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).

PSO sell-off attracts keen interest

The Privatisation Commission (PC) has received keen interest from several parties in response to the recent re-advertisement for the proposed sale of 51 per cent shares in Pakistan State Oil (PSO) with management control, the PC said on Wednesday.

Parties and groups submitting Statement of Qualifications (SOQs) and/or reaffirming their continuing interest in PSO include Abraaj Capital, UAE, Abu Dhabi Group, UAE, Al-Ghurair Investment, UAE, consortium of Aljomaih Group Saudi Arabia and Noor Financial Investment, Kuwait and National Industries Group, Bakri International Energy Systems and Dabbagh Group Holding, Saudi Arabia, Goldman Sachs (Asia) Finance, Vitol SA (Switzerland) and MCB Bank, Fauji Foundation, Attock Group of Companies and Kohinoor Group led by Kohinoor Textiles from Pakistan. In addition, some parties indicated their interest but did not submit SOQ, including the PSO employee group.

CFS Eligible Scrips

1. ACBL
2. BAFL
3. BOP
4. DGKC
5. DSFL
6. ENGRO
7. FABL
8. FCCL
9. FFBL
10. FFC
11. HUBC
12. KAPCO
13. KESC
14. LUCK
15. MCB
16. MLCF
17. NBP
18. NML
19. OGDC
20. PIAA
21. PICB
22. PICIC
23. POL
24. PPL
25. PPTA
26. PSO
27. PTC
28. SNGP
29. SSGC
30. TELE
31. AICL
32. CTTL
33. BOSI
34. NCL
35. ANL
36. PCCL
37. JOVC
38. DCL
39. TRG
40. WTL
41. SNBL
42. KOHC
43. PRCBL
44. STPL
45. SPCB
46. JSIB
47. NETRSOL
48. CHBL
49. Attock Refinery
50. Attock cement
51. AHSL
52. INDU
53. ICI
54. PRL
55. Cherat cement
56. Packages
57. PSMC
58. ABL
59. FNEL
60. Pak Electron
61. Bank Al habib
62. Millat Tractor
63. Pakistan Cable
64. KSE
65. BOC
66. THALL
67. SECURITY PAPER
68. APL
69. Ferzoz sons

PSO profit drops by Rs1.9bn

Pakistan State Oil (PSO) on Tuesday declared Rs0.6 billion after tax profit for first three months of fiscal 2006-07, which is Rs1.9 billion less than what the company earned during the same period last year.

The announcement came following a meeting of the company’s Board of Management, which reviewed the financial performance of the country’s largest oil marketing enterprise.

During the period under review, sales revenue of PSO touched Rs101 billion compared to Rs71 billion in the corresponding period last year, said a press release issued here.

However, profit after tax dropped to Rs0.6 billion compared to Rs2.5 billion during the first quarter of FY06.

Banks major attraction for foreign portfolio investors

The growing foreign interest in Pakistan’s developing economy, particularly in areas like banking and capital market, is well reflected in the Karachi Stock Exchange, which has been rising for the last couple of weeks.

This is primarily evident from the increased inflow of foreign portfolio investment into Special Convertible Rupee Account (SCRA) managed by the State Bank of Pakistan.

SBP figures pointed out that during the week ended on October 12, 2006, a massive inflow of US$13.5 million was recorded in the country’s stock markets.

Chinese team shows interest in refinery

A trade delegation from China visited PSO House on Tuesday and during discussions with the management of the company expressed interest in setting up a refinery in Pakistan.

The team headed by Yang Hansheng was accompanied by Director Refining, Ministry of Petroleum, Muhammad Azam and officials of the Chinese Consulate, said a PSO press release issued here.

Managing Director and Chief Executive Officer PSO Jalees Ahmed Siddiqi briefed the visiting delegation on working of PSO and its future plans. He said the company is using technology to its advantage by seeking to reinforce technology-driven initiatives and also working for diversification of fuel and non-fuel business.