Dr. Ishaq Dar and Prof. Asif Ali Zardari come to the rescue of Pakistani economy:

The News

Look at the retarded way the article was written. Its obvious bias from the writer as if he's assuming the fall is because the parties cant muster enough votes for the impeachment. Why cant the idiot take into account that maybe the idea that people want to impeach musharraf is causing investors to lose confidence in the country and hence they're pulling out faster than Nawaz Sharif can make his hair grow.

GOD the media is so BAD in that country.

yes, the bias is more deep rooted than denial in egypt, but can he really deny the very reality?





bring back SA ... and watch the market soar again .... lol

all i gotta say is ......... Enjoy your Dar ... or Qureshi or whatever next

These are the time tested corrupt politicians people voted for and this is what they going to get DEMOCRACY ZINDABAD.


SPEEDY
enjoy

As the saying goes, make a mistake once, shame on you, make a mistake twice, shame on me.

The Pakistani public thoroughly deserves it.

KSE witness yet another black day
Updated at: 1600 PST, Wednesday, May 28, 2008

KARACHI: Karachi Stock Exchange (KSE) yesterday’s fight back, perhaps proved too exhaustive sapping all of its energy that brought KSE-100 index today falling flat by 567 points and down below 12,200 marks.

The market opened downbeat and soon went through severe bouts of depression, except a brief moment, when the index was seen gaining by 100 points, but that proved elusive, as there was nothing to cheer about at the national political scene, while the rulers appeared bent on carrying out their one-point agenda, which had all the negative bearings for the sagging economy. All blue chips on the bourse’s board showing red signs were seen locked at their lower levels, while the bookies and punters kept beating their chests and tears rolling down from their eyes.

KSE-100 index at the end of the trading session melting away 567 points wrapped up at 12254. Turnover today aggregated to 180 million shares, which as compared yesterday was less by 100 million shares. Volume leader NIB Bank losing Rs1 closed at Rs12. KSE-30 index evaporating 749 closed at 14395 points.

Source: The News

You are absolutely right that many in Pakistani media sold to crooks in politics can write anything ridiculous. Anyhow, what I understand (maybe I am wrong) is that the news above is linking the fall of KSE with desire of trying to impeach President Musharraf (as according to the news, KSE is taking it badly). If that is the case, the report is true.

One can see the sentiment of KSE from recent news that after continuous fall in KSE since April 20, yesterday KSE started negative, rose around 240 points after Gillani interview (on Tuesday morning) where he said that he likes President Musharraf and would follow his policies: [KSE has lost around 3400 points since April 20. It is worse crash than ever (and within 5 weeks). Maximum KSE lost in past was 2900 points (March-May 2005), but that was not loss as it was index correction because even after that loss of 2900 points, KSE was above what it was in January 2005 ... and nevertheless, KSE recovered all those losses by end of the year (giving over 50 percent rise during the year 2005 .. from Jan to Dec 2005)].

Here is what Gillani said:
http://www.dawn.com/2008/05/27/welcome.htm

'I like Musharraf's support for democracy': PM Gilani ISLAMABAD, May 27 (APP): Prime Minister Yusuf Raza Gilani has said what he likes most in President Musharraf is his support for democracy and his straight-forwardness. “He (Musharraf) supports democracy. He is very frank, straight-forward,” Gilani said in an interview with a private television channel Tuesday. Gilani said his government would support the policies of the previous government if these coincided with the PPP manifesto - issues like Women Protection Bill and women's representation in assemblies. However, Gilani said he has made changes in the policy in respect of war against terror with focus on finding root cause of the problem rather than use of force alone. Gilani said he also believed that the March 9 step by President Musharraf against the judiciary had cast a negative impact on his political goodwill. Talking about the challenges confronting the present government, Gilani mentioned electricity and flour crises, law and order situation and inflation. On upcoming budget, the Prime Minister said focus would be on primary education, basic health facilities and increase in wages. (Posted @ 16:40 PST)

But rumour today that President is going to resign turned the sentiment bad again and KSE lost around 570 points today.

Democrazy Zindabad!

Well its obvious anyone with any iota of understanding economics knows that Ganja and Zardari are bad news. Musharraf was much better compared to either of these clowns.

What the rest of 60% illiterate/jahil Pakistanis dont understand is exactly that. But unfortunately they'll vote for them.

i expect KSE to fall by a couple of thousand points once Musharaf is either impeeched or resigns.

All i have to is ...... congradulations ... to everyone who voted for these "politicians"

The voter turnout was around 42%-45%. The problem is their goons came out in force where as the majority of our beloved quam sat at home…But with people having no faith the election process and corruption being rife can anyone blame them? I know Musharaf staged a fair election but the people have been conditioned to believe that lies and politics go hand in hand. We simply have to educate the masses and restore their faith in forcing things by the ballot. Once this happens this Gunda mafia will be shut out forever. At the same time we also need aspiring people to lead that the people can have confidence in.

KSE plunges 567 points as rumours trigger panic selling
Thursday, May 29, 2008, By our correspondent

KARACHI: Rumours of President Musharraf’s resignation and brokers going bankrupt on the Karachi bourse on Wednesday never allowed the market to sustain earlier recovery.

The benchmark KSE 100-share index crashed 567 points or 4.42 per cent to end at 12,255 points, the nine-month lowest level. The 30-index shed 749 points or almost five per cent to conclude at 14,395 points. Bank and energy shares suffered the worst battering on the bourse. Panic selling forced five dozen stocks to close at lower circuit-breakers.

Among 359 active issues, only 56 managed positive closing while 292 scrips settled in the red region and 11 closed unchanged. The non-availability of buyers caused the trading volume to fall 29 per cent to 187.8 million shares in the ready market as compared to 263.8 million shares traded a day earlier. Market capitalisation dropped by Rs170 billion to stand at Rs3.783 trillion.

Hasnain Asghar Ali at Aziz Fidahusein said, “value buying emerged in opening hours and the index made a visit to the positive territory, unfortunately the recent statements by the US senators admitting some mistakes certainly gave birth to rumours regarding the President’s resignation. The rumours certainly invited aggressive selling.”

He added, “the intensity increased following rumours that inability of some brokers to address margin calls has led to forced selling by their respective financiers.” The hefty selling forced buyers to pull back buying limits, absence of buyers caused massive erosion in value of equities, liquidity crunch forced the leverage players to stay on the sidelines and in no time almost all the main board stocks hit the bottom lock.

Government has an unclear stance on capital gains tax forcing market participants to wait and see. Ahsan Mehanti at Shahzad Chamdia Securities said that SBP’s rate hike has entirely changed stocks’ fundamentals. The reflection of that increase in key policy rate was continuously seen on the Karachi bourse, as it is one of the best barometers to gauge any country’s economic performance, he added.

The news of likely cut in oil marketing companies and refineries’ profit margins; and correction of US$4 dollar in international oil prices also worsened the gloomy situation on the KSE, he added.

Highest volumes were witnessed in NIB Bank at 10 million closing at Rs12 with a loss of Re1, followed by Bank Al-Falah at nine million closing at Rs45.13 with a loss of Rs2.37, TRG Pakistan at 8.3 million closing at Rs6.65 with a loss of 80 paisa, OGDC at 7.9 million closing at Rs123.27 with a loss of Rs6.48 and National Bank at 6.7m closing at Rs161.27 with a loss of Rs8.48.

Source: The News

Sigh ............... They irony ...

Would love to see how much progress, justice and success do nawaz & zardari bring to Pakistan ... :)

KSE-100 Index goes below 12000 level
Updated at: 1235 PST, Thursday, May 29, 2008

KARACHI: The bullish spell continues at the Karachi Stock exchange, with the benchmark KSE 100-index shedding over 500 points in early trade on Thursday falling below the 12000 points psychological barrier.

The negative trend continuously running deep in the market as the market had closed on Wednesday in the bearish zone. The investors to avoid the uncertain situation offloading their positions causing selling pressures that have guided all sectors of the market to the red zone.

The economic woes compounding with the political tensions and reports of enforcement of CVT in the budget playing havoc with the stock market, analysts said. The situation has shattered the confidence of the investors, they said. The 100-Index lost 502 points in the beginning of trading on Thursday and the index went down to 11752 points.

Source: The News

Congratulations everyone. Rumours of Musharraf leaving have left investors running for the hills. You all know how long it took for the KSE to actually get to the 12000 mark under Musharraf for the first time? Is it any surprise this panic selling is occuring at a time when Ganga is making statements about Musharraf. Investors know that underneath all that artificial hair, is matter similar to styrofoam and dog food.

Or maybe Dog Sh!t for that matter ZPak.

On further thought Challenger you make a valid point.

you guys are taking a slump too seriously, when KSE rises we don't claim the politicians are responsible for it, so why blame them when it falls?

Market conditions are what cause fluctuations politicians don't haev that much effect anymore.

Actually Politicians make economic and financial policies, they deserve 100% of the credit when it goes up and when it goes down.

At the moment, all that has happened is that the new setup has lost confidence of everyone with a penny to invest.

Bullish or bearish? Is the author on pot?

All the big traders have sold off and reduced their portfolios in Pakistan and have been remitting money out to invest in UAE real estate. My advise is you guys take all your investment out as well. The sh!t is about to hit the fan.

I really don't know which business school this reporter went to. This is the joke of century

Exactly, this is what I said in my earlier posts if you can remember.

Pakistani media brilliance never fails to impress.

KSE crashes with a big bang
Karachi, June 2, 1998

It was Black Monday for the Karachi Stock Exchange (KSE) when the consistent downslide reached its climax and the index recorded an unprecedented fall of 128.75 points hitting the lowest ebb at 911.44 ever since the formulation of the new index about eight years ago.

The 13 to 38 per cent decline in the price index heralded the crash of the market, which was steadily going down the cliff. Ultimately, the base level of 1,000 points was breached on Monday as bears went on the rampage from the very word go indicating the failure of all damage control measures taken by the KSE management. Between May 4 and now, the index lost over 48 per cent leaving no one in doubt that the bourse had crashed. The aggregate market capitalisation registered a hefty fall of Rs31.645 billion in a single session at Rs271.405 billion. Just a little over seven months ago in October 1997, the total capitalisation stood at Rs612 billion. An erosion of Rs341 billion in such a brief spell of time has ruined several small savers – including widows, orphans and senior citizens.





















China’s forex reserves hit $1.76 trillion

SHANGHAI: China’s foreign exchange reserves rose to $1.76 trillion at the end of April, state media reported Monday, reaching a level higher than the rest of Northeast Asia’s combined.

China’s reserves, by far the largest in the world, expanded by another $74.5 billion during April, the China Business News reported, equivalent to about $100 million every hour. At $1.76 trillion, China’s reserves are now larger than those of Japan, Taiwan, South Korea and Hong Kong combined.

It is possible that one day China’s forex reserves might even top those of all other Asian countries combined, according to Brian Mak, a Hong Kong-based economist with Core Pacific Yamaichi.

The increase in reserves was roughly three times larger than the trade surplus and the value of incoming foreign direct investment — the two traditional sources of reserve growth. This led analysts to conclude that perhaps as much as 50 billion dollars entered the economy in the form of hot money.

“This (figure) seems to suggest the inflow of hot money is speeding up,” the newspaper quoted Logan Wright, an analyst with Stone and McCarthy Research Associates, as saying. afp

The KSE is up 580 points, putting it slightly above 13,000. Maybe there is some hope...

There's no hope. I hope small investors are not duped into buying.

There would be another round of crash, just wait and see.

KSE drops below 13,000 points level on budget uncertainty

KARACHI: The Karachi stock market failed to sustain above the psychological level of 13,000 points on the first trading day of the week Monday due to panic selling witnessed over political uncertainty, federal budget uncertainty, prevailing judges reinstatement issue and negative economic conditions, which affected the investors’ sentiments negatively, analysts said.

The Karachi Stock Exchange (KSE) 100-share index shed 226.33 points or 1.72 percent to close at 12,908.23 points as against the previous session’s 13,134.56 points. The KSE-30-share index lost 419.23 points or 2.71 percent to close at 15,030.33 points.

Analysts have said that the market took off positively with an initial gain of 78 points, however during later part of the trading session, it failed to maintain its buoyancy as the long march certainly added to the nervousness in the local bourses although the movement was previously announced and different political statements against legal standing and acceptance of the Presidency that came in over the week end.

The market turnover went down 24.08 percent and traded 122.03 million shares as compared to 160.74 million shares traded in the previous session.

The overall market capitalisation lost 1.65 percent to Rs 3.979 trillion as compared with the previous session’s Rs 4.046 trillion. Out of 322 companies, 81 closed in positive zone, 215 in negative while 26 remained unchanged.

Hasnain Asghar Ali, analyst at Aziz Fida Hussein and Company said the unclear political and economic paths dominated the trading session, thus disallowing the news of concessions accepted by the rulers of Saudi Kingdom and the sharp increase in international oil prices to have an impact, on the contrary sympathising with the vigorous slide in regional stock exchanges the local bourses witnessed low volume in the post mid-day activities the intensity increased towards the end, but the index managed to close above 12,900 points after making an intra-day low of 12,867 points.

Peaceful lawyers march and reconciliatory efforts by the political confronters will allow the investors in the local bourses to react on the profitability of the listed companies in post budget sessions. Apprehensions are that post budget environment will be comparatively peaceful, he said. Ahsan Mehanti, an analyst, describing reasons for negative index, termed it due to falling SCRA balances reflecting foreign outflow.

The futures’ market turnover went down to 41.18 million shares as compared to 54.16 million shares traded in the previous session. Four of the companies closed in positive zone while thirty nine in negative. staff report