KSE100-index closes at 9059 points
KARACHI: Pakistani stocks ended up on Friday on buying from foreign investors but off its early gains as local institutions booked profits as the benchmark index crossed the 9,000 points. The Karachi Stock Exchanges (KSE) 100-share index closed 62.58 points, or 0.70 percent, higher at 9,058.77 on turnover of 157 million shares. The index has gained 54.45 percent this year after losing 58.3 percent in 2008. Local investors succumbed to the psychological barrier of 9,000 points and booked profits, despite continued foreign interest, said Asad Iqbal, managing director at Ismail Iqbal Securities Ltd. The KSE-index has advanced over several sessions as some foreign investors were drawn by Pakistans improving macroeconomic fundamentals. According to official data, foreign investors bought shares worth $95.3 million in August and $88.81 million in the first ten days of September. Among blue chips, Oil and Gas Development Co. Ltd. rose 2.25 percent to 111.99 rupees, National Bank of Pakistan, gained 1.61 percent to 78.89, and Pakistan Oilfields, ended 2.72 percent higher at 216.19 rupees. In the currency market, the rupee ended weaker at 82.82/87 to the dollar compared with Thursdays close of 82.77/87 due to payments for imports. Dealers said the rupee was expected to face downward pressure because of import payments. However the rupee has been supported by remittances from Pakistanis working overseas. 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 4.5 percent this year after losing 22.12 percent in 2008.
Dollar hits nine month low against euro
LONDON: The dollar fell to the lowest levels for months against the euro and the yen on Friday as upbeat economic data reduced demand for the safe-haven greenback, dealers said. The euro rose to a near nine-month high of 1.4627 dollars in early London trading. The dollar dropped to 90.98 yen -- the lowest level since mid-February. In later London trade, the European single currency stood at 1.4591 dollars compared with 1.4583 dollars in New York late on Thursday. Against the Japanese currency, the dollar fell to 91.04 yen from 91.74 yen on Thursday. Gold headed back towards 1,000 dollars an ounce as the weak US unit made the metal cheaper for buyers holding rival currencies, pushing up demand, dealers said. "The dollar continues to move lower setting a new low for the year against the euro... while the dollar has fallen more sharply against the yen," said Derek Halpenny, European head of global currency research at The Bank of Tokyo-Mitsubishi UFJ in London. "Risk appetite has been supported by mostly positive economic data from China," he added. Chinese economic numbers fuelled dollar weakness on Friday and investor risk appetite, underlining hopes of a global economic recovery, said Rabobank International economist Jeremy Stretch. China said industrial activity expanded by 12.3 percent last month and retail sales jumped 15.4 percent, while urban fixed asset investment rose 33 percent in January-August due to massive government spending on construction. Traders snapped up the currencies of countries exporting commodities to the Asian powerhouse, notably the Australian dollar. In contrast to the upbeat Chinese data, Japan revised down its estimate of second-quarter growth to 0.6 percent, from an initial estimate of 0.9 percent. Most analysts meanwhile expect the dollar to weaken further amid a growing sense that recovery from the worst global economic crisis in decades is taking root. With the economic outlook brightening, traders tend to shun the dollar in favor of riskier currencies that appeared more profitable, like the euro. Elsewhere, the British pound strengthened after the Bank of England on Thursday left its monetary policy unchanged, holding its key lending rate at a record low 0.5 percent and maintaining emergency stimulus measures to prevent the economy from sliding deeper into recession. In London on Friday, the euro was changing hands at 1.4591 dollars against 1.4583 dollars late on Thursday, at 132.89 yen (133.81), 0.8747 pounds (0.8756) and 1.5148 Swiss francs (1.5141). The dollar stood at 91.04 yen (91.74) and 1.0380 Swiss francs (1.0381). The pound was at 1.6687 dollars (1.6651). On the London Bullion Market, the price of gold jumped to 998.88 dollars an ounce from 990.75 dollars an ounce late on Thursday.
$28.559 million foreign investment in a week
KARACHI: The Karachi share market recorded an inflow of $28.559 million of foreign portfolio investment during the week ended on September 11, 2009. According to National Clearing Company of Pakistan Limited (NCCPL), the net inflow of foreign portfolio investment at the local equity market increased to $90.829 million during 11 days of the current month. An inflow of $94.635 million of this mode of investment was recorded in the preceding month. The offshore investors bought shares worth $51.0 million and sold shares worth $22.4 million, resulting in net buying of $28.6 million during the week. The week started with a positive trend and $2,026,896 of foreign portfolio investment was seen on Monday. An inflow of $9,650,737 was recorded on Tuesday, while $3,007,925 came on Wednesday. An inflow of $11,850,059 of this mode of investment was recorded on Thursday and $2,023,902 came on Friday.
HBFC technically bankrupt: NA body told
ISLAMABAD: National Assemblys Standing Committee on Finance has been told that House Building Finance Corporation (HBFC) has gone technically bankrupt, as its more than half loans could not be recovered, Geo News reported Friday. Fozia Wahab presided over the meeting of NAs standing committee to mull over HBFC affairs. The Federal Finance Minister Shaukat Tarin told the committee that 65 percent of the corporations loans could not be recovered, adding 26 percent shares of the corporation would be handed to the private sector and the institution would be further strengthened. MD of the Corporation Azhar Jafery told the committee that the corporation suffered los of Rs2 billion during the last five years and the 65 percent of un-recovered loans are worth over Rs6.25 billion. The MD said 56 percent of HBFC employees want to take retirement instead of working and taking modern training.
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