HONG KONG--Hong Kong shares ended Wednesday at a 21-month high, tracking gains in both U.S. and China stocks, but analysts expect a market correction in early February.
The blue-chip Hang Seng Index rose 166.89 points, or 0.7%, to 23822.06, the highest closing level since it ended at 23892 on Apr. 27, 2011. Trading volume totaled 76.13 billion Hong Kong dollars (US$9.81 billion), up from HK$75.66 billion Tuesday.
Hong Kong stocks started the day taking a cue from Wall Street, where the Dow ...
Positive local and foreign interest, macroeconomics boost KSE 167 points. PHOTO: AFP KARACHI: Breaching all-time highs has become routine for the largest stock market of Pakistan as the Karachi bourse once again closed at a historic high on the back of foreign interest, institutional buying and the government’s decision to shuffle up priorities in its new gas management policy. Moreover, expectations regarding a healthy corporate results season catalysed buying.
The Karachi Stock Exchange’s (KSE) benchmark 100-share index climbed 0.98% or 167.05 points to end at 17,172.04 point level. Trade volumes rose nominally to 197 million shares compared with Monday’s tally of 190 million shares.
“Attractive dividend yields and healthy anticipated earnings growth helps the index continue breaking records,” reported Khalil Usmani, analyst at JS Global Capital. Rumours of foreign interest also continued to build investor confidence as the KSE is still the cheapest in the region, added Usmani.
The value of shares traded during the day was Rs5.99 billion.
Among macroeconomic triggers, the Economic Coordination Committee (ECC) decided to give preference to industries and fertiliser producers for gas allocation over the CNG sector in its new gas load management strategy.
The decision of the ECC initiated a rally in the fertiliser sector as Engro Corporation, deemed to be the largest beneficiary of the new policy, closed near its upper limit and among the top five on the volume leader board, according to Elixir Securities daily review of the market.
Cements continued to attract buying over earnings excitement. Telecoms also witnessed buying as investors expect higher international call termination rates, which rolled out from October 1, 2012, to propel sector’s earnings.
The index-heavyweight oil sector, which was out of favour, made a decent comeback with the Oil and Gas Development Company and the Pakistan State Oil generating good interest.
Telecard Limited was the volume leader with 34.71 million shares gaining Rs0.72 to finish at Rs3.43. It was followed by Fauji Cement with 18.98 million shares shedding Rs0.17 to close at Rs7.95 and DG Khan Cement with 13.24 million shares rising Rs1.24 to close at Rs55.57.
Foreign institutional investors were net buyers of Rs340.2 million ($3.47 million), according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, January 30th, 2013.
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The LCCI president observed that Pakistan’s total share of exports to Africa was 5.5% in 2007, which inched up marginally to 6.7% in 2011. DESIGN: MOHSIN ALAM LAHORE: The Trade Development Authority of Pakistan (TDAP) has worked out a plan to ensure a substantial increase in Pakistan’s exports, says the authority’s Chief Executive Abid Javaid Akbar.
Akbar, who was speaking at the Lahore Chamber of Commerce and Industry (LCCI) on Monday, said that Pakistan’s exports can go up to $50 billion in the coming years, as TDAP has adopted a focused approach to enhancing exports on the basis of information received from 45 Pakistani missions abroad.
Akbar also hinted at the possibility of initiating barter trade with Developing 8 (D8) countries that have weaker banking and financial systems. He said that the proposition was discussed especially with Iran and Nigeria during the recently-concluded D8 Summit.
He also said that TDAP is ready to work with LCCI proposals regarding holding of exhibitions at the Lahore Expo Centre and patronising the chamber’s delegations on visit to various global destinations. Akbar said that TDAP is presently working on creating awareness among businesspersons regarding the right market places for their products.
“TDAP is a facilitator and will extend maximum facilitation to entrepreneurs. The government is quite wary of the issues and challenges faced by the business community and is taking necessary measures to overcome these problems,” he said.
Speaking on the occasion, LCCI President Farooq Iftikhar urged TDAP to focus on exploring markets for Pakistani value-added items, as about one half of Pakistan’s exports go to seven countries only while a fourth of exports consistently finds its way into the European Union.
He said that there is a lot of potential in trading with regional countries and blocs like the South Asian Association for Regional Cooperation (Saarc), the Association of Southeast Asian Nations (Asean), the Organisation of Islamic Cooperation (OIC), the Central Asian republics, the Middle East, Africa, China, Iran and India, but unfortunately no strategy has been adopted to tap this potential.
The LCCI president observed that Pakistan’s total share of exports to Africa was 5.5% in 2007, which inched up marginally to 6.7% in 2011. “It speaks volumes about our failures in tapping such a huge market,” he observed. “TDAP must spearhead efforts to increase our share in Africa. It is high time that the government follows the EU model for promoting regional trade under Asean, Saarc, OIC and D8,” he added.
The LCCI president also urged TDAP to study the reasons of decline in intra-Saarc and intra-OIC trade. “While suggesting ways to reverse these trends, TDAP should also focus on increasing the share of intra-Asean trade,” he added.
Published in The Express Tribune, January 29th, 2013.
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