M. M. KHAN Karachi I RECENTLY entered into an import transaction on C&IF price, but my bank refused to open the LC on C&IF price, saying that either of the two, ie. FOB or C&F, prices were acceptable to them under directives of the State Bank of Pakistan, which requires the insurance business to remain in Pakistan. Therefore, I was required to arrange a marine insurance cover from a local insurance company. The inspection part of the goods before shipment was not covered by the local insurance company which had charged a very nominal premium. My request to them to arrange inspection from professional inspectors at the point of origin was also turned down by the insurance company. I tried to arrange professional inspection of the goods before shipment at my own cost and expense, that too did not work out as the professional inspectors were used to dealing with local insurance companies in that country. As a result, my shipment had to leave there uninspected and I am wonderin...

The full amount of Rs20 billion Karachi Stock Exchange (KSE) support fund, which was set for rescuing KSE out of crisis, has now been received and the fund is buying all the selected shares. Nation Investment Trust (NIT) Chairman and State Enterprise Fund CEO, Tariq Iqbal Khan told Geo News in program ‘Tezi Mandi’ that the fund was buying shares of the prescribed eight companies and added that those advising brisk buying, why they themselves were not buying in the market. He termed the news about the fund not having received the full amount baseless and said that the market support fund’s full amount existed in the bank with full guarantee. He further said that this was the best time for buying, as the shares prices were at low-levels.

The newly reconstituted board of National Clearing Company of Pakistan Limited (NCCPL) has unanimously elected Khalid Ahmed Sherwani as the company’s chairman in its board meeting held on Thursday. Sherwani has served on the Board of Karachi Stock Exchange and has diversified management experience of 39 years in banking sector, including seven years as president of Allied Bank Limited, according to a press statement. The newly reconstituted NCCPL Board comprises Khalid Ahmed Sherwani (Chairman), Muhammad Lukman (Chief Executive Officer), Muhammad Yasin Lakhani, Zafar S Moti, Osman Asghar Khan, Adnan Afridi, Mian Shakeel Aslam, Dr Arsalan Razaque, Nooh Adnan, Syed Muhammad Khurshid Anwer, Abdul Karim Hatim and Muhammad Aliuddin Ansari.

ISLAMABAD: Pursuant to the amendments in Section 95A of the Companies Ordinance, 1984, the Securities and Exchange Commission of Pakistan (SECP) has approved the draft of The Companies (Buy-Back of Shares) Regulations, 2009. The draft of the said Regulations has been placed on the Commission’s website, http://www.secp.gov.pk/DraftAmendments/trs_draft_09.pdf and is being published in the official gazette for soliciting public opinion as required under Section 506A of the ordinance. Section 95A of the ordinance, recently notified by the Federal Government allows the listed companies to buy-back/repurchase their own shares and hold such shares as Treasury Shares, whereas under the old Section 95A, the repurchased shares were required to be cancelled. The buy-back /repurchase may be used as a tool to bring stability in market prices of the shares that are undervalued on the stock market. Buy-back/repurchase of shares by listed companies may consequently improve earning per share. The draft...

KARACHI, Jan 22 Karachi stocks fell over 2 percent on Thursday to its lowest closing since September 2004 as foreign investors sold shares in blue-chip companies, dealers said. The Karachi Stock Exchange (KSE) benchmark 100-share index .KSE closed 2.25 percent, or 115.77 points, lower at 5020.71 points on a turnover of 72.7 million shares. The index recovered above 5,000 points having earlier hit a low of 4,953.01 points. "Its a global trend now. Foreign investors are continuously looking for an exit from the market," said Sajid Bhanji, a dealer at Arif Habib Ltd. Bhanji said local investors were losing confidence in the falling market. The KSE-index has shed 14.4 percent this month after a 58.3 percent fall in 2008. The Pakistan market was artificially propped up in late August, when authorities placed a floor under the main index. The floor was removed on Dec. 15 and the index has lost 45 percent since then. A 20-billion rupee ($250 million) government support fund began b...

Jan. 21 (Bloomberg) -- President Barack Obama begins his “new era of responsibility” today by gathering economic advisers to tackle the banking crisis after an inaugural address in which he outlined an agenda aimed at nothing short of “remaking America.” Obama’s speech yesterday was dominated by twin themes of optimism about the future of the U.S. and a sober warning on the difficulties of managing two wars and the worst economic climate in generations. “Starting today we must pick ourselves up, dust ourselves off and begin again the work of remaking America,” he said. As if to reinforce his message about the hard tasks ahead, the Dow Jones Industrial Average fell 4 percent, the most on any Inauguration Day in the history of the index. Investor concern that banks must raise more capital sent financial shares to an almost 14-year low. State Street Corp. fell 59 percent, while Wells Fargo & Co. and Bank of America Corp. dropped more than 23 percent. “What is required of us now is a n...

The continued distress-sale of shares by the foreign portfolio investors and irresolution of debt issue at Karachi bourse between brokers and banks pushed market down to new low of four-year on Wednesday. With another notable plunge of 121.80 points or 2.32 per cent in this session, the KSE 100-share Index depreciated to 5,136.48 points. The day closing level is the lowest one after September 28, 2004 closing of 5,128.13 points. The parallel running junior 30-Index slashed 152.04 points or 3.08 per cent and concluded at 4,782.97 points. Hasnain Asghar Ali at Aziz Fidahusein observed that although private and government sector funds did stay prominent buyers in various main board stocks many even succeeding in trading above lower locks, foreign downpour strengthened further as it joined hand with selling by local participants thus never allowing the buyers to resist the high tides, and the KSE benchmark was yet again pushed to deep-red. Analysts said that foreigners were offloading thei...