KARACHI: Numerous stockbrokers, who supported the movement for the removal of ‘badla’ system of share financing, were jubilant when their wish was granted. While many who spearheaded the movement, vow never to let what they believe is a ‘haram’ interest product, to sneak back into the market, there are others, who were earlier swept by the crowd, but are now taking a step back and looking at the results. That is not to say that anyone is floating the idea of revisiting age old mode of share financing prevalent in just the sub-continent, variously named: the badla, the COT or the COT Mk-II. But with each passing day as the volume of business at the market continues to shrink. Currently at 125 million shares and nearly one-half of the average number of share traded daily early last year, the absence of a widely useable leverage product is being badly felt. All of that has put the spotlight on a modified form of the old system — the ‘in-house’ badla. Haji Ghani Haji Usman, an old time bro...

Selling pressure further pulled down prices at Karachi Stock Exchange (KSE) Thursday as 100-Index plunged by 100.18 points to close at 7,142.42, dealers said. The turnover volume was low at 114.060 million shares as prices of 229 sustained losses while 91 recorded gains and 21 remained unchanged. A dealer at a leading brokerage house said that the market was bullish in the morning, but profit taking eroded values. The market started going down on selling pressure with no support from financial institutions and Index closed in the negative zone. The market capitalization was also eroded by about Rs 29 billion to Rs 2.127 trillion. Bosicor Pakistan was the volume leader with a turnover of 15.541 million shares followed by Jahangir Siddiqui Co 9.075 million shares, D G Khan Cement 6.490 million shares, Bank of Punjab 5.009 million shares and POL 4.887 million shares. Pakistan Oilfields closed at 147.52, Lucky Cement 55.16, NBP 72.51, Bank Al-Falah 11.84, Jahangir Siddiqui Co 26.54, Bank o...

KARACHI: A high level delegation of Hong Kong based Independent Power Producers Forum (IPPF) will visit Pakistan on May 17, to explore possibilities for investment in power generation. This was stated by the chairman Pegasus Consultancy, Asim Siddiqui while talking to APP here Thursday. He said that this forum is one of the world’s largest support organizations which promote private power generation across Asia and Pacific. All the large producers of power generation equipment and machinery, including General Electric of USA, Maurobeni of Japan, Siemens of Germany, and National Power of UK are its members. They have identified three countries in Asia and Pacific for new power projects in 2009, and Pakistan is in the list that also includes Indonesia and Vietnam, he added. He said that the delegation will also attend the 7th Pakistan Oil, Gas & Energy Exhibition (POGEE) and conference, scheduled from May 18 to 21 at Karachi Expo Centre. Asim said that the delegation will also presen...

The Karachi Stock Exchange issued suspension orders of trading in shares of four companies on Friday, making a tally of 12 companies disallowed from trading so far this year. The period of suspension was extended to a further 60 days of the following companies: Indus Polyester Company; Tariq Cotton Mills, Pak Fibre Industries and Long Term Venture Capital Modaraba. A dozen companies were suspended last year and seven the year before. From August 1988, since the process began, the bourse has put trading of 74 companies on the hold until they ‘remove the cause of suspension.’ Some investors complain that the exit route for delinquent companies runs the familiar course: placing them on the defaulters’ counter, suspension and finally delisting. The defaulters’ counter had been set up years ago so as to put to shame companies that do not comply with regulations, pertaining mainly to small investors’ rights. The action has met with success in varying degrees. The KSE has continued to justif...

The Karachi stock market closed slightly higher on Friday as most investors kept to the sidelines. Analysts attributed the lack lustre trading to the critical security situation in the country and limited activity by retail and institutional investors. The Karachi Stock Exchange (KSE) 100-share index was slightly up by 3.85 pts or 0.05 percent to close at 7,129.51 points as compared to 7,125.66 points of the previous session. The KSE 30-share index surged 40.77 points and closed at 7,602.13 points as compared with 7,561.36 points. The KMI 30 index was slightly down by 0.65 points to close at 10,034.13 points as against 10,034.78 points. Analysts said mixed activity was witnessed during the trading session as uncertainty loomed over repercussions of Prime Minister Gilani’s call for intense offensive against militants of Swat and Malakand. Very thin volume of 100 million shares were traded during the session indicating cautious approach by investors, as they are not prepared to take any ...

The Karachi stock market closed lower on Thursday as the deteriorating security situation in Buner, Dir and subsequent killing of Sufi Mohammed’s son by Pakistan Army’s shelling propelled investors to offload their holdings. The Karachi Stock Exchange (KSE) 100-share index lost 73.21 points or 1.02 percent to close at 7,125.66 points as compared to 7,198.87 points of the previous session. The KSE 30-share index shed 86.33 points and closed at 7,561.36 points as compared with 7,647.69 points. The KMI 30 index also decreased by 122.13 points to close at 10,034.78 points as against 10,156.91 points. Analysts said another reason for the sluggish trend was the May 12 strike calls by ANP and MQM, which is expected to aggravate the law and order situation in the city. The market turnover fell 13.98 percent and traded 122.16 million shares as compared to previous session’s 142.02 million shares. The overall market capitalisation declined by 1.02 percent to close at Rs 2.121 trillion from its o...

Expectations over development of coalition parties kept the Karachi stock market on an upbeat note on Wednesday as retail and institutional investors opted for buying activities. The Karachi Stock Exchange (KSE) 100-share index gained 117.04 points or 1.65 percent to close at 7,198.87 points as compared to 7,081.83 points of the previous session. The KSE 30-share index increased by 129.60 points and closed at 7,647.69 points as compared with 7,518.09 points. The KMI 30 index also surged 139.39 points to close at 10,156.91 points as against 10,017.52 points. Analysts said hectic buying activities were witnessed in the market during the trading session as PML-N was considering joining the federal cabinet, which had a positive impact on the market. The market turnover increased by 46.53 percent and traded 142.02 million shares as compared to previous session’s 96.92 million shares. The overall market capitalisation rose 1.61 percent and closed at Rs 2.143 trillion from its opening at Rs 2...