KSE-100 index gains over 2pc to hit year's high

KARACHI : The Karachi share index set another high of the year with a 2.3-percent gain on Friday as investors drew confidence from improving macroeconomic indicators. Despite a long weekend ahead, with the market expected to be closed until next Thursday due to the Eid al Fitr festival marking the end of the Muslim fasting month of Ramazan, cautious book squaring was outweighed by buying. The Karachi Stock Exchange's (KSE) 100-share index closed 214.43 points, or 2.31 percent, higher at 9,436.82 on turnover of 207.3 million shares. The index has gained 60.9 percent this year after losing 58.3 percent in 2008. "It was expected that there would be some profit taking, but instead the local institutions were very active after the encouraging numbers for the current account," said Mohammed Sohail, chief executive at Topline Securities Ltd. Pakistan recorded a current account surplus of $82 million in August, compared with a current account deficit of $606 million in July, the State Bank said on Thursday. Dealers said foreign investors were active in recent sessions, and that had encouraged domestic institutions to buy. According to official data, foreign investors bought shares worth $95.3 million in August and $99.2 million between Sept. 1-17. Dealers also said investors were hoping for positive news from the Friends of Pakistan meeting which is scheduled for Sept. 24 in New York. Among the most active companies, volume leader Jahangir Sidiqui ended 4.99 percent higher at 30.53 rupees, Pakistan Telecommunication Co. Ltd rose 5 percent to 21.21, while National Bank of Pakistan gained 4.9 percent to 84.40 rupees. In the currency market, the rupee ended flat at 82.93/83.03 to the dollar compared with Thursday's close of 82.94/83.00 to the dollar. The rupee has been supported by remittances from Pakistanis working overseas, though dealers expect pressure from importers will weaken the rupee going forward. Remittances rose 31.78 percent to a record $780.53 in August, compared with $592.30 million in the same month last year. The rupee has lost 4.6 percent this year after sliding 22.12 percent in 2008. The State Bank is due to announce its monetary policy for the period to the end of November on Sept. 29 and analysts expect policy rates to remain at 13 percent, or to be cut by 50 basis points. source:-aaj tv.com

12 killed, several injured in Fatehjang road accident

FATEHJANG : At least 12 people were killed and many others sustained serious injuries in a collision between two coasters, near Bhal Syedian on Fatehjang-Kohat road in wee hours of Friday. According to DSP Malik Ejaz a Kohat-bound coaster No. PO-263 going from Fatehjang collided head-on with another coaster No.LHP- 8973 coming from Ghamgoal Sharif to Donga when its driver lost control while trying to overtake. As a result, EDO Health Attock Dr. Mussarat Abdullah said 12 people were killed on the spot while many others injured. The local administration and Highway police rushed to the spot and reterived bodies from the wreckage and shifted injured to different hospitals of Fatehjang and Rawalpindi. Most of the dead included devotees coming Ghamgoal Sharif. The dead were indentifed as Sajjad Ahmed, Muhammad Shabir, Asghar Ali, Ahmed Din, Shahabaz Qaisar, Sarwar Bhutt, Jhangir Younas and Arshad Ali. While identity of two women and childern killed in the accident was yet being acertained. DPO Attock Muhammad Wisal Fakhar Sultan Raja also visited hospital to inquire after the injured. He directed hospital staff to provide best treament to the injured. source :-aaj tv .com

Dollar slips back after early gains

LONDON : The out of favour dollar slipped back on Friday after sharp early gains made against the euro as investors took profits on the European single currency's recent advance, dealers said. They said all the markets have had a strong week, becoming increasingly confident that the global economy is on the mend, even if there remain good reasons for caution. As the tone becomes more positive, investors are branching out into riskier assets and so away from the dollar and its safe-haven qualities, they said, adding that the US unit will likely remain under pressure for some time. US interest rates are very low and sentiment on the dollar is unlikely to change until the figures begin to show the US economy returning to growth, pointing to a move by the Federal Reserve to hike lending costs, they said. In late Friday London trade, the European single currency was at 1.4723 dollars, off an early low of 1.4679 dollars but still down from 1.4740 dollars in New York late Thursday when it had struck 1.4767 dollars the highest level in almost a year. The dollar was firmer at 91.28 yen from 91.03 yen while the euro was at 134.27 yen from 134.17 yen. The dollar hit a seven-month low of 90.16 yen on Wednesday after Japan's new finance minister suggested the authorities would not intervene on the markets to weaken the rising yen. Dealers said that with little data around, there was no fresh lead to follow and so investor took some profits. "Economic data is ultra thin on the ground today, leaving those who were short with little else to contemplate other than whether to take profits ahead of the weekend," said Calyon analyst David Keeble. Commerzbank analysts said a cheap to borrow dollar was additionally under pressure as investors readily used it to buy other assets, making it possible the euro could hit 1.50 dollars. "The 1.50 (level) is highly attractive.... The dollar has become a financing currency for carry trades, which currently constitute an attractive investment strategy," they said in a note. "This situation is unlikely to change until there are signs that the Fed might raise rates. In an environment such as this the 1.50 (dollars level) seems the next logical target." The British pound meanwhile fell sharply after news that the country's public finances plunged further into the red in August, striking a record deficit for the month under the weight of a deep recession. In London on Friday, the euro was changing hands at 1.4723 dollars against 1.4740 dollars late on Thursday, at 134.27 yen (134.17), 0.9036 pounds (0.8960) and 1.5142 Swiss francs (1.5159). The dollar stood at 91.28 yen (91.03) and 1.0294 Swiss francs (1.0283). The pound was at 1.6279 dollars (1.6445). On the London Bullion Market, the price of gold eased to 1,012 dollars an ounce from 1,018.50 dollars an ounce late on Thursday. source:- aaj tv .com

KSE index gains 16.49 points

KARACHI : The Karachi share market on Monday opened on a positive note and the KSE-100 index hit 9,147.45 points intra-day high. However, the momentum could not continue due to investors' cautious stance as they opted for profit taking ahead of Eid and the index closed with a meagre gain of 16.49 points at 9,075.26 points. Trading remained dull and the volume at ready counter declined to 144.495 million shares as compared to 192.758 million shares of previous Friday. Market capitalisation increased by Rs 4 billion to Rs 2.638 trillion. Out of 380 active stocks, 188 closed in negative and 179 in positive while the value of 13 stocks remained unchanged. Bank Al Falah was market leader with 11.624 million shares and gained Re. 0.34 to close at Rs 12.94. BoP increased by Re. 1.00 to close at Rs 14.16 with 6.088 million shares. NBP lost Rs 0.65 to close at Rs 78.17 with 4.971 million shares. Pak PTA gained Re. 0.22 to close at Rs 5.24 with 11.025 million shares. Arif Habib Sec increased by Re. 0.34 to close at Rs 38.65 with 7.838 million shares. DG Khan Cement lost Re. 0.32 to close at Rs 35.03 with 6.687 million shares. OGDC gained Re. 0.50 to close at Rs 112.59 with 6.403 million shares. Nishat Mills surged by Rs 2.91 to close at Rs 61.29 with 6.211 million shares. Azgard Nine increased by Re. 0.28 to close at Rs 27.51 with 5.353 million shares. Jahangir Siddiqui Co closed at Rs 27.48, down Re. 0.66 with 5.250 million shares. Rafhan Maize and Wyeth Pak were the highest gainers and gained Rs 65.00 and Rs 57.11 to close at Rs 1535.00 and Rs 57.11 respectively while Pak Services and Millat Tractors were the worst losers and lost Rs 11.75 and Rs 10.18 to close at Rs 223.39 nad Rs 309.71 respectively. Ahsan Mehanti at Shehzad Chamdia Securities said that positive activity was witnessed as OGDC and PPL invited investors' interest on Nashpa discovery. Second-tier banks remained in limelight on strong valuations. Limited foreign interest and positive valuations on Nishat Group scrips played a catalyst role in positive activity at KSE. Salman Naqvi at Aba Ali Habib Securities said that investors took cautious stance ahead Eid. The absence of a leverage product also discouraged the investors to take fresh position, which affected the trading activity at the local bourse. Foreign investors' activity also remained low, which invited profit taking in late hours and minimised the index's intra-day gains. sorce:-aaj tv.com

Gold price rises over $1000 per ounce

LONDON : Gold prices rose above $1,000 per ounce on Tuesday, the highest since March 2008 — suggesting investors are wary of the US dollar's weakness and expect international interest rates to remain low for some time. The gold contract for October delivery traded up $10.10, or 1.0 percent, at $1,005.60 per troy ounce in midday European trading on the London Metals Exchange. Gold is typically bought as an alternative to the dollar among safe-haven assets favoured by investors seeking to preserve capital. So its rise often correlates to a drop in the value of the American currency. That is what happened in the spring of 2008, when gold was last above $1,000 and worries about the financial crisis brewing in the US were hurting the country's currency. "It is mainly the reflection of the weakness of the dollar," said Julian Jessop, economist at Capital Economics. The dollar fell to 92.29 yen on Tuesday from 93.05 yen the night before and slid to $1.4434 against the euro from $1.4332 as stock markets rose and investor sentiment improved. Jessop noted, however, that gold was also being boosted by market expectations that global central banks would keep their interest rates low for some time to come. One disadvantage to holding gold is that no interest is earned — but rates on dollar-denominated assets such as government bonds have fallen sharply, lessening that disadvantage. "Near-zero interest rates in many of the world's largest economies reduces the opportunity cost of holding gold," Jessop said. The fact that 20 of the world's rich and developing nations promised over the weekend to keep in place their stimulus measures — which include both spending as well as low interest rates — reinforced the appeal of gold. Jessop was not convinced gold could sustain such high prices for very long or push much higher, since consumers quickly start selling gold items to take advantage of stronger prices. "This rally is sowing the seeds of its own destruction," he said. source:- aaj tv.com