KSE fetches $45.285m foreign investment in just 2 days

Foreign players made a net investment of $45.285 million at the Karachi Stock exchange in just two sessions (Monday and Tuesday), according to the National Clearing Company of Pakistan Ltd.
Only on Tuesday, offshore investors invested $21.3 million (gross buy of $24.9 million and gross sell of $3.6 million). Moreover, total investment made by foreign players on Monday dramatically inched up to $23.99m (gross buy of $26.5m and gross sell of $2.5m).
This foreign interest in the local stock market has changed the market’s direction and index is travelling towards sky while benchmark gained over 450 points in last three sessions.
Most of the market experts are of the view that the current foreign interest in the equity market is due to the availability of attractive low-priced stocks. Shahid Ali at HMFS expressed that, “it would be unfair to say that Monday’s and Tuesday’s bullish momentum can be attributed to foreign investors who invested around $24 million only on Tuesday. We need to give credit to local investors who keep their faith in philosophies of valued investors. We are of the view market is running with heavy fuel as if you are travelling on a missile.”
While analyst Hasnain Asghar Ali stated, “the dollar inflow mania kept the local participants on edge of their seats, since the rally has been initiated by participants from foreign land earnings multiples were substantially increased, as indeed the local equity market is still offering stocks with consistent dividend and growth record at substantial discounts.”
Meanwhile, positive news flow during the month of August has fetched over $95m Foreign Portfolio Investments, highest monthly flows since February 2008. This was at the back of reversal of country risk premium led by contained twin deficits and IMF assurance of continuous funding till December 2010.
Additionally, the expected flows from US and Friends of Pakistan are likely to improve further liquidity and provide more fiscal space for government to incur development expenditures. This is reflected in the stock market and Eurobond rally off late.

Comments

SECP initiates 86 show-cause proceedings against compamies

The SECP’s Enforcement Department— while enforcing compliance of corporate and allied laws— initiated 86 show-cause proceedings and concluded 54 proceedings against chief executives, directors and auditors of companies in February and March. While facilitating companies to strengthen their capital base, the department allowed three listed companies to issue shares by way of otherwise than right at a discount and at par. In order to strengthen the existing regime of Corporate Social Responsibility (CSR) reporting, the SECP has joined hands with the ICAP for the external assurances of the CSR reports. CSR reports assist organizations in understanding and communicating their vision of combining a company’s profitability with social responsibility and environmental care. Both the SECP and the ICAP have reaffirmed their commitment to developing a framework for external assurance in accordance with prominent international assurance standards, and within a mutually agreed time f

Chairman SECP Reaffirms Commitment to Facilitate Businesses

The Securities and Exchange Commission of Pakistan (SECP), as part of its efforts to promote ease of doing business through meaningful stakeholder engagement, held an interactive virtual session with representatives of Overseas Investors Chambers of Commerce & Industry (OICCI). The session was chaired by the Chairman SECP, Aamir Khan, who briefed the participants about recent improvements in the regulatory ecosystem and highlighted some key changes, including introduction of digital certificate of incorporation, creation of special portal for banks to facilitate account opening, digitization of account opening process for resident and non-residents for investment in the capital market etc. These reforms have greatly improved efficiency of processes, which have been duly reflected in country’s global rankings. During the session, the Chairman apprised the OICCI’s representatives about SECP’s future endeavors in this regard to simplify regulatory requirements, reduce compliance c

THK Associates (Private) Limited: Shares Registrar

THK Associates (Pvt) Limited was formed in 1989. The company is engaged in providing specialized services relating to the corporate sector and in particular acts as share transfer agent for a number of companies. THK Associates (Pvt) Limited is one of the leading service provider of Share Registrar, Transfer Agent, Balloters for IPO’s and Share Accounting Services and is managed and run by a set of professionals having indepth knowledge and expertise of organizing and managing diversified corporate activities including depository related Share Registrar activities. THK Associates (Pvt) Limited, previously an associate of KPMG Taseer Hadi & Co., has been restructured in terms of requirements of Clause XL of the Code of Corporate Governance and the shareholding of THK partners has been divested in the year 2004. Mr. Yunus Dawood, Chief Executive of DYL Motorcycle Limited, a shareholder and Director was appointed as Chairman of the Company in 2008. Mr. Javed Iqbal, former Chairman an

Stocks Observer. com

Search This Blog