Pak-US strategic talks push Karachi stocks 183 points up: Daily Times

KARACHI: The Karachi stock market witnessed a bullish trading session on Wednesday as investors went for across-the-board buying.

Analysts said the US-Pakistan strategic talks in Washington, which are expected to resolve the energy crisis in Pakistan and make agreements for export of Pakistani products to the US, did the trick.

The Karachi Stock Exchange (KSE) 100-share index gained 182.92 points or 1.84 percent to close at 10,146.27 points as compared to the previous session’s 9,936.35 points. The KSE 30-share index closed at 10,475.66 points with a gain of 207.20 points. The KMI 30 closed at 15,260.99 points with a rise of 247.68 points.

Analysts said the market opened in the green zone and remained in the buoyant momentum throughout the trading session amid intense foreign interest in oil and gas, bank and fertilizer sectors on strong valuations. Healthy volumes were traded during the session reflecting growing confidence among investors.

The market turnover went up by 117.91 percent and traded 160.30 million shares as compared with the previous session’s 73.56 million shares. The overall market capitalisation was up by 1.44 percent and traded Rs 2.876 trillion as against Rs 2.835 trillion. Out of total 411 companies, 239 closed in the positive zone, 152 in negative and 20 remained unchanged.

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FUND VIEW-Pakistan fund eyes growth despite violence: Reuters

By Peter Apps

LONDON, June 6 (Reuters) - Political uncertainty, occasional bomb blasts and border militant insurgency do not stop Pakistan being a good investment destination, one of the first funds to target the country says, comparing the economy to a smaller India.

The Melchior Selected Trust Pakistan Opportunities Fund, launching this month and aimed at ultimately reaching some $200 million in Pakistani equities, says the country has been poorly portrayed and its economic fundamentals remain appealing.

"We believe Pakistan has been treated unfairly by the international media," David Graham, partner of fund manager Dalton Strategic Partnership.

Pakistan's immediate political future remains uncertain after parties supporting President Pervez Musharraf were defeated in an election while Al-Qaeda this week claimed responsibility for Monday's suicide car bomb attack on the Danish Embassy in Islamabad that killed six people.

"In looking at the Pakistan market, we see many similarities with India," Graham said, noting Pakistan had been described as "India at half the price".

Along with China, India has attracted vast fund volumes from emerging investors in recent years.

For more on this article, please click on the following link: FUND VIEW-Pakistan fund eyes growth despite violence: Reuters

Pakistan's Lucky Cement Revives Overseas Share Sale: Bloomberg

By Farhan Sharif
April 24 (Bloomberg) --

Lucky Cement Ltd., Pakistan's biggest maker of the building material, plans to raise $150 million selling shares overseas for the first time after delaying the offering by six months because of political turmoil.
The offer of global depository receipts will run from April 27 to May 7 before listing on the London Stock Exchange, Muhammad Abid Ganatra, Lucky's company secretary, said by telephone from his Karachi head office.
Construction of offices, homes and infrastructure in the Middle East, India and Afghanistan is driving demand for cement from Pakistan, which sells the cheapest building material in the region. Cement sales, including exports, rose 39 percent in March to a record 3.18 million metric tons, according to industry data.
``The issue will obviously get a positive response from investors,'' said Bilal Hameed, research analyst at JS Global Capital Ltd. in Karachi. ``The company is a leader in production, sales and also plans further expansion.''
A successful offering may help the government revive share sales in National Bank of Pakistan, Habib Bank Ltd and Kot Addu Power Co. The offers were delayed after President Pervez Musharraf imposed emergency rule for six weeks in November.
Lucky Cement, which has climbed 22 percent this year, rose 0.4 percent to 142 rupees at the 2:15 p.m. local time close on the Karachi Stock Exchange.
``We had planed the sale for after September or October last year, but we delayed it due to political instability at that time,'' Ganatra said. ``Now things have changed and we see a tremendous response.''
Delayed Sales
Pakistan's cement exports more than doubled to 5.2 million metric tons in the nine months ended March 31, compared with 2.14 million metric tons a year earlier, according to the Lahore-based All-Pakistan Cement Manufacturers Association.
The funds raised in the overseas share sale will be used to increase production capacity by 2.5 million tons, Lucky Cement said in a statement in July. Output will rise to 9 million tons in three years from 6.55 million tons.
Lucky Cement posted a 20 percent increase in third-quarter profit on April 21, because of higher overseas sales. Net income rose to 665.3 million rupees ($10.4 million) in the three months ended March 31, from 553.7 million rupees a year ago.
The company has the capacity to produce 6.5 million tons of cement a year, according to JS Global. D.G. Khan Cement, the second-biggest cement maker has the capacity to produce 4.2 million tons a year.
To contact the reporter on this story: Farhan Sharif in Karachi, Pakistan at fsharif2@bloomberg.net. Last Updated: April 24, 2008 06:55 EDT

Original Link: http://www.bloomberg.com/apps/news?pid=20601091&sid=aC0fzssI3P3U&refer=india