Pakistani stocks drop; rupee flat; o/n rates up

Pakistani stocks ended lower on Wednesday as investors chose to cash in after the market rallied to a more than six-month high for two consecutive days, dealers said.

The Karachi Stock Exchange (KSE) benchmark 100-share index fell 0.17 percent or 21.37 points, at 12,263.25 points. The KSE-index closed at 12,284.62 points on Tuesday, its highest close since July 26, 2011.

Volume rose to 243.29 million shares, compared with 162.11 million traded on Tuesday.

“After gaining (a total) of around 3 percent in the last two trading sessions, investors opted to book profits, especially in oil and banking stocks,” said Samar Iqbal, a dealer at Topline Securities Ltd.

U.S. Stock Futures Little Changed on Greece

U.S. stock-index futures were little changed as investors waited for Greece’s politicians to accept spending cuts needed to secure financial aid and for the Federal Reserve chairman to testify before a Senate committee.

Anadarko Petroleum Corp. (APC), the largest independent U.S. oil and natural-gas producer, rose 1 percent in German trading after reporting fourth-quarter profit that beat estimates.

Yum! Brands Inc. (YUM), the owner of the KFC and Taco Bell fast-food chains, gained 1.8 percent in early New York trading after posting quarterly net income that gained 30 percent.

KSE index touches six-month high

The Karachi Stock Exchange’s (KSE) benchmark index closed at six month high at 12,136.92 points with an increase of 154 points, on Monday, on significant buying in leading energy and banking stocks, said dealers.

“Apparently, foreign buying helped the market sustain well above the 12,000 points coveted level,” said Imtiaz Gadar, Head of Research at KASB Securities.

The benchmark KSE 100-share index increased by 154.30 points, or 1.30 percent, to six month high of 12,136.92. This is the highest closing level since August 2, 2011.

At a point of trading, the index had surged by 229.69 points to intra-day high of 12,212.31.

KSE likely to consolidate around 12,000 points

The Karachi Stock Exchange (KSE) is expected to consolidate around 12,000 points threshold next week ahead of full-year financial results, particularly of banks and likely increase in foreign portfolio investment, dealers said on Saturday.

“Financial results would help the market maintain in the green territory next week,” said Furqan Punjani, an analyst at BMA Capital, adding that the market may consolidate around 12,000 points with an increase of 50-100 points.

At present, the leading benchmark of the KSE, the 100 index, is 17.38 points away from 12,000 points coveted level and standing at 11,982.62 points.

Taiwan Bonds Drop a 3rd Day, Currency Rises on Optimism for Global Growth

Taiwan’s government bonds dropped for a third day and the local dollar strengthened after reports that showed better-than-forecast growth in U.S. jobs, fueling optimism the global economy is recovering.

The Taiex (TWSE) index of shares rallied 0.9 percent after overseas investors bought $1.1 billion more Taiwanese stocks than they sold in the last five days, taking net purchases for the year to $2.1 billion, according to exchange data.

The 243,000 increase in American payrolls was the most since April and exceeded all forecasts.

The unemployment rate of the world’s biggest economy dropped to 8.3 percent, the lowest since February 2009.

S&P 500 Extends Best Start to Year Since 1987 as Bonds Fall on Jobs Report

Stocks surged, extending the best start to a year for the Standard & Poor’s 500 Index since 1987, and Treasuries slid as better-than-forecast growth in U.S. jobs bolstered optimism in the economy. Lead, aluminum and cotton led commodities higher while gold, silver and natural gas fell.

The S&P 500 increased 1.5 percent to 1,344.90 at 4 p.m. in New York and is up 6.9 percent in 2012. Yields (USGG10YR) on 10-year U.S. Treasury notes climbed 11 basis points to 1.93 percent, the biggest increase since November.

The Dollar Index (DXY) slipped 0.1, erasing earlier gains. Oil rebounded from a six-week low.

Asian Stocks Rise for Third Day on Global Outlook; Glitch Hits Tokyo Trade

Asian stocks advanced for a third day, with the regional benchmark index heading for its highest close in three months, as manufacturing gained in the U.S. and Europe, boosting confidence the global economy is recovering.

LG Electronics Inc. (066570), the world’s No. 3 maker of mobile phones, jumped 7.4 percent in Seoul.

Toyota Motor Corp., the world’s largest carmaker by market value, advanced 1.8 percent after car sales in the U.S. increased last month.

Lynas Corp. surged 19 percent in Sydney after the rare earths supplier won approval to start production in Malaysia.

European Stocks Are Little Changed; Xstrata Shares Jump on Glencore Talks

European (SXXP) stocks were little changed as Glencore International Plc’s talks to buy Xstrata Plc (XTA) boosted mining companies, offsetting declines at Royal Dutch Shell Plc (RDSA) and Unilever.

U.S. index futures were little changed, while Asian shares rose.

Xstrata jumped 10 percent after confirming that Glencore made an approach about an offer for the coal, copper and nickel miner.

Royal Dutch Shell Plc and BP Plc (BP/), Europe’s two biggest oil companies, fell more than 1 percent.

Unilever dropped 4 percent as the world’s second-largest consumer-goods maker posted revenue growth that missed analysts’ estimates.

U.S. Stock Futures Little Changed Before Data

U.S. stock-index futures were little changed, erasing earlier gains, before a report that may show initial claims for jobless benefits in the world’s largest economy fell.

Qualmish (QCOM) Inc., the world’s biggest maker of mobile-phone chips, climbed 4.8 percent in early New York trading after raising its sales and profit forecasts for this quarter and the year.

Las Vegas Sands Corp. (LVS) lost 0.7 percent even after profit excluding some items matched analyst estimates.

Standard & Poor’s 500 Index futures expiring in March slid less than 0.1 percent to 1,319.7 as of 11:18 a.m. in London, after earlier rising as much as 0.4 percent.

European Stocks Advance on Signs Manufacturing Growth is Gaining Traction

European (SXXP) stocks advanced for a second day, with the Stoxx Europe 600 Index extending its best start to a year since 1998, amid signals that manufacturing growth is gathering pace from America to China.

U.S. index futures climbed, while Asian shares were little changed.

Car makers and banks led gains.

ICAP Plc (IAP) jumped 6.6 percent after saying annual pretax profit will be at the “upper end” of the range of analysts’ estimates.

RWE AG (RWE) climbed after Morgan Stanley added the stock to its best ideas list.