Board of Directors of the MCB Bank has approved the proposed acquisition of Royal Bank of Scotland’s local commercial and retail operations. The expected transaction is subject to signing of the share purchase agreement, SBP approval and other customary regulatory approval/requirements. MCB revealed this in a notice sent to Karachi Stock Exchange (KSE) on Monday. MCB further said the Board of Directors of MCB met on August 08, 2009 at MCB premises for announcing bank’s first half year financial results for 2009 and to consider proposed purchase of RBS, Pakistan (formerly ABN AMRO Bank). The top-level management of MCB has consented to participate in a bidding process, which is expected to be held soon for acquiring the stake of RBS, Pakistan by MCB Bank. According to a notice, the concerned parties are set to sign share purchase agreement soon which is being financially advised by Bank of America, Merrill Lynch and KASB Bank Limited on the proposed transaction. Some news reports have c...

Bulls dominated the trading sessions at the Karachi stock market during the week, as investors remained optimistic over International Monetary Fund (IMF) and Pakistan's officials meeting to discuss economic assistance of Pakistan and the release of third tranche for economic support. The Karachi Stock Exchange (KSE) 100-share index gained 151.30 points or 2 percent to close at 7,872.23 points as compared to 7,720.93 points of the previous week. Analysts said other major factors that supported the market included rise in international oil prices near to $76 per barrel in London trade, rebound in rupee fall and continued foreign interest. The turnover was recorded at 139.43 million shares as compared with 140.36 million shares of the previous week, reflecting a decline of 0.93 percent. "The one big surprise for the market during the week was the aggressive buying by offshore investors," said analyst at JS Research Bilal Qamar. "Net foreign buying stood at $18.6 million...

Askari Bank Limited has dropped the idea of acquiring Mybank Limited. AKBL has informed the Karachi Stock Exchange on Friday saying that the bank is no longer interested in the amalgamation scheme of Mybank with Askari Bank. It is important to mention here that AKBL had applied to the State Bank of Pakistan last month for conducting the due diligence of Mybank with an aim of evaluating Mybank’s balance sheet, at the same time analysing its loss/profit, asset and liabilities and deposits position and looked for suitable proposed transaction. During the proposed period of due diligence, the interested banks are allowed to go for auditing of the balance sheets of the bank/institution that is put on sale. Sources said both concerned parties had submitted their due diligence report to SBP but they failed to make any consensus on the swap ratio accepted for this deal taking into account the book values, fair values and industry historical benchmarks. In June 2009 Askari Bank Limited had show...

The Karachi Stock Exchange has asked its members to furnish any claim against Noman Abid Securities (Pvt) Ltd, the incoming member or M/s Noman Abid and Company Ltd the retiring member. In its notice to all members on Thursday, the KSE has intimated that Noman Abid Securities Ltd has submitted corporate membership application on the nomination of Noman Abid and Company Ltd. The proposing corporate member is IGI Finex Securities Ltd and the second is Al Habib Capital Markets Ltd.

The suspension of memberships of five brokerage firms of the Karachi Stock Exchange (KSE) is taking new turns and twists as the name of a nominee director and chief executive officer of one of the suspended brokerage company was put in Exit Control List (ECL), instead of its owner. The name of Zafar Habib, Nominee Director and CEO Clicktrade, one the brokerage firms whose membership was suspended by the apex regulator on June 30, 2009, has been placed in ECL instead of its owner and major shareholder Hanif Peerani. Addressing a press conference at the Karachi Press Club (KPC) on Wednesday, Habib and another director Shehzad accused Haneef Peerani and Chief Financial Officer (CFO) Syed Wajid Ali of misappropriating and embezzling over Rs 200 million of clients’ investments. They disclosed that both Peerani and Ali have shareholding of 94 percent and five percent respectively and entire portfolio of the company’s clients was pledged by these two to fund their personal losses by taking lo...

Mixed activity was witnessed in overbought market as investors preferred booking profits in banks and fertilizer sectors while KSE 100-index shed minimal 4 points to close at 7,716.99 points on Monday. Oil sector, however, remained in limelight as international oil prices shoot near to $70 and oil exploration/production companies were set to increase earnings by 15 percent in fiscal year 2008-09. Moreover, cement sector showed positive performance on record exports and expectations of record result announcements this week. The KSE 100-index opened with green numbers on the board, gaining 28.02 points and narrowly missed the opportunity to close the day in green zone. Index shed nominal 3.94 points to close the day closed at 7,716.99 points on Monday. Trading activity was unhealthy as compared to the last trading session. The ready market volume decreased to 127.459 million shares as compared to last trading session’s 141.204 million shares. Total trading value of the market inched up ...

Bullish sentiments were witnessed at the Karachi stock market on the last trading day of the week Friday on support from intense buying activities as State Bank of Pakistan hinted at discount rate cut in the next monetary policy review on August 15. The Karachi Stock Exchange (KSE) 100-share index increased by 229.17 points or 3.06 percent to close at 7,720.93 points as compared to 7,491.76 points of the previous trading session. The KSE 30-share index closed at 8,195.93 points with a gain of 275.91 points. The KMI 30 index closed at 11,674.75 points with a surge of 353.64 points. Analysts said that the KSE 100-share index made a massive gain despite opening negatively as investors took positions across-the-board on International Monetary Fund’s (IMF) positive remarks on consideration over $4 billion loan for Pakistan’s economic revival. The market turnover went up by 40.92 percent and traded 140.36 million shares as compared to previous session’s 99.60 million shares. The overall mark...