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PAKISTAN RETAINS THIRD SPOT AMONG TOP TEN STOCK MARKET PERFORMERS
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ISSUE # 29 - 30 ----- July 20 - Aug 2, 2015

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Pakistan Stock Market (KSE-100) 1990-2015 decreased to 35147.13 Index points in July 9, 2015 from 35,328.83 Index points in the previous trading day. Stock market in Pakistan averaged 7691.91 Index points from 1990 until 2015, reaching an all-time high of 35,537.69 Index points in July of 2015 and a record low of 538.89 Index points in June of 1990.......

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PAGE TOP STORIES

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EXCLUSIVE INTERVIEWS
& PAGE SPECIAL REPORTS

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VIGOROUS CAPITAL MARKET SET TO CONCUR NEW FAVORABLE DESTINATIONS
INTERVIEW WITH MR NAEEM RAFI -- CHIEF EXECUTIVE, RAFI SECURITIES (PVT) LTD
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Currently the market is trading on its peak near the level of 36,000 points. At the current level market has more new destinations to concur. The market is able to go beyond the level of 36,000 very easily after the Eid holidays and after that the level of 38,000 is not so much far away. There are many factors, which contribute towards the growth in the stock exchange index. That includes low interest rates, low inflation rates, the Rupee has established at the current levels against US Dollar. The foreign exchange reserves are at the highest levels.....

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LSE PLAYING A DOMINANT ROLE TOWARDS GROWTH OF CAPITAL MARKETS IN PAKISTAN
NEW ALGORITHMIC TRADING SYSTEM HAS BEEN LAUNCHED
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Lahore Stock Exchange (LSE) is a fully electronic and completely automated stock exchange of Pakistan. As of today, the LSE is the only domestic exchange to have more than one trading floors and is also the only exchange in the region to have established a unified order book with another domestic stock exchange in the country.
Activities at LSE have increased significantly in all operational areas since its inception. A number of significant initiatives have been taken to improve the regulatory regime and the trading environment for the benefit of institutional investors as well as listed companies, a senior official in the LSE told PAGE..
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OIL PRICES
OIL WEEKLY BASKET PRICE

 (US Million $)
PERIOD PER BARRELS
July 24, 2015 53.46
July 17, 2015 54.59
July 10, 2015 55.07
July 3, 2015 58.90
June 26, 2015 59.74
June 19, 2015 60.21
June 12, 2015 61.08
June 5, 2015 60.49
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PREVIOUS ISSUES

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PAKISTAN WEATHER
3 DAYS FORECAST

  MIN MAX HUM% FORECAST.
KARACHI
SUNDAY 27 32 65 cloudy
MONDAY 27 31 66 rain
TUESDAY 27 31 67 rain
LAHORE
SUNDAY 26 32 75 rain
MONDAY 25 33 75 rain
TUESDAY 25 32 72 rain
ISLAMABAD
SUNDAY 23 31 76 rain
MONDAY 23 31 77 rain
TUESDAY 23 31 76 rain

updated: Sun-Tue, July 26 - 28, 2015

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COVER STORY

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PAKISTANI BOURSES CAPABLE TO MATERIALIZE GOVTíS PLAN TO PRIVATIZE PUBLIC SECTOR ENTITIES
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Globally, privatization through the stock markets was the most transparent process; however, this successful practice is not being followed in its true perspective here in Pakistan.
Although the government has undertaken initiatives for the development of capital market and the reform process is continuing to change economic environments, desired results have not been achieved.
Analysts believe that the decision by the government to use the stock exchanges to privatize state-owned enterprises (SOEs) is one that deserves to be welcomed...

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COVER STORY
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MUTUAL FUND INDUSTRY EMERGING FAST IN PAKISTAN
INTERVIEW WITH MIR MUHAMMAD ALI, CFA-CEO UBL FUND MANAGERS LIMITED
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UBL Funds is a wholly-owned subsidiary of United Bank Limited, and was incorporated in 2001. We started off as a small AMC with not more than five employees. Today, UBL Funds stands out as one of the leading AMCs in Pakistan with presence in the UAE and an employee base of over 350. We have stayed true to our mission of delivering services through a client-centric approach focusing on superior returns, excellent customer service, and need-based products, while maintaining the highest ethical and professional standards.

We believe in innovation and have been delivering on our promise of introducing new products and services to the market. UBL Funds launched Pakistan's first CPPI-based plans in 2008 and have launched 8 Funds in the CPPI category since then. In 2010, UBL Funds successfully implemented the Global Investment Performance Standards (GIPSģ) for the performance presentation of its Funds under management......

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COVER STORY
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IRANíS NUCLEAR DEAL TO BENEFIT PAKISTAN MACROS
LIFTING OF SANCTIONS TO FORMALIZE $3-4 BILLION INFORMAL TRADE BETWEEN PAKISTAN AND IRAN

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The historic deal between Iran and P5+1 promises an end to multiplier sanctions imposed by USA, UN and EU since the start of Iranís nuclear program, likely to bring manifold impact on Pakistanís overall economy. This historic development, which is most important for  Pakistan and other countries in the region will have a positive impact on trade deficit during financial year 2016 i.e. US$20.3 billion, 6.5 per cent of GDP provided possibly lower oil prices to yield oil import gains to the tune of US$5 billion.......

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COVER STORY
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MICRO SMALL AND MEDIUM ENTERPRISES: AN ENGINE OF GROWTH, PROSPERITY

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Entrepreneurs occupy a central position in a market economy as it is the entrepreneurs who act as the spark plug in the economyís engine, activating and stimulating all economic activity. The economic success of nations worldwide is the result of encouraging and rewarding the entrepreneurial instinct. A society is prosperous only to the degree to which it rewards and encourages entrepreneurial activity because it is the entrepreneurs and their activities that are critical determinant if the level of success, prosperity, growth and opportunity in the economy......

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COVER STORY
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CONDUCTING OF ROAD SHOWS IS ESSENTIAL TO ATTRACT MORE INVESTORS IN STOCK MARKETS
INTERVIEW WITH MR MUHAMMAD AZAM KHAN -- CEO & NOMINEE DIRECTOR OF SUNRISE CAPITAL (PVT) LTD
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Securities and Exchange Commission of Pakistan (SECP) is playing a significant role in the capital market, and it is taking such measures initiatives through which capital market become more transparent. SECP efficient and proactive role are increasing the belief of investors and its wild eye on the capital market has highly reduced the fraudulent activities in the capital market. SECP, besides strengthening the regulatory framework that protects investorsí interest also launched initiatives to expand the range of capital market investment products to savers across a nation.

Concurrently, SECP in 2015 has set up an Investor Awareness Generation Committee to create Capital Market Hubs in major cities of Pakistan such as Karachi, Lahore and Islamabad.....

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COVER STORIES
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SHIPPING
NEWS

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DRY BULK MARKET AT DOWNWARD PATH
After 16 straight rising sessions, the dry bulk marketís benchmark, the Baltic Dry Index (BDI) ended on a downward path. However, this wasnít enough to dent the obvious optimism among market delegates, which have seen the index surpassing the 1,000-point psychological mark. As shipbrokers noted, with the latest market figures pointing to bullish trend for dry bulk market for the time being, it seems that there has been some easing in the market with regards to fears of continued difficulties in the trends of seaborne trade........
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COVER STORY
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P-TEVTA GATHERS STEAM IN PUSH FOR SKILLS DEVELOPMENT AND EMPLOYMENT
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Introduction of Recognition of Prior Learning (RPL) Program is another step in the right direction which is meant to certify the skills of those who are already working in the skill market but without any certification. It has brought a large number of non-recognized workforces into the fold of certified skilled workforce ready to explore employment opportunities in the local job market as well as abroad. Now Tevta is working on both ends of the industry by tapping market for skills training and market for skilled labor.....

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RESEARCH CORNER

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KARACHI STOCK EXCHANGE MAKING POSITIVE PROGRESS

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The year 2014-15 has been termed as a turbulent year for Pakistani Stock Exchange. The KSE-100 Index demonstrated an overall optimistic performance during July to December 2014.
The landmark performance of the stock exchange during fiscal year can be attributed to a number of optimistic factors counting a stable macroeconomic situation, maintain exchange rate, acceleration in the privatization procedure, downward inflation rate, prudent monetary strategies and strengthening of countryís economic progress.
The optimistic inclination of KSE-index continued till January 2015, reaching an all-time high level of 34,826.51 points..

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CAPITAL MARKETS
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COVER STORY
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PRIVATIZATION PROCESS AND CONCERNS
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As the present government is much focused on privatization, Privatization Commission headed by Zubair Umar has short-listed 31 institutions to be privatized. According to chairman PC, the privatization process is absolutely on and financial advisers are performing their job, whether it is the Pakistan International Airlines (PIA), Pakistan Steel Mills (PSM), National Power Construction Company (NPCC) or power distribution companies like Iesco and Fesco......

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IN THE NEWS

Pakistan Steel Mills (PSM) Board on Friday allowed PSM to sell its inventory (finished and unfinished) worth Rs 9 billion at suitable price with the permission of Economic Co-ordination Committee (ECC) of the Cabinet for bringing the mills out of financial woes. The source said to research analyst-PAGE that there is price difference of Rs 8000 per ton between the PSM manufactured products and the landed cost of imported products hence till the prices are reduced, inventory cannot be disposed of. ......

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INDIA IN THE NEWS

MUMBAI: Strong selling by investors in China and other large institutional players like exchange-traded funds (ETFs) pushed the price of gold below the $1,100 per ounce mark for the first time in five years, which in turn forced domestic prices to below the psychologically important Rs 25,000 per 10g mark, a four-year low in the Mumbai market last week. With international analysts predicting international gold prices to fall below the $1,000 level, domestic gold buyers could expect a price of Rs 22,000 later in the year, market players said....

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GULF NEWS

VIENNA: Iran expects to rejoin the international electronic payment system SWIFT three months after sanctions imposed on it are lifted and it will also become easier for foreign firms to take part in privatisations in Iran, a senior Iranian official said.
His remarks suggested Iranís long isolated but high-potential, energy-based economy will be open for investment once sanctions are removed as a result of its July 14 deal with world powers placing limits on its disputed nuclear programme. Industry Minister Mohammad Reza Nematzadeh also said Iranís foreign reserves total between $115 billion (Dh463.5 billion)........

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ANNOUNCEMENT

Meezan Bank has formally launched a set of financing schemes to provide Shariah-compliant financing under the Prime Ministerís Youth Business Loan (PYMBL) program with a focus to support Pakistanís economy,
PMYBL is a program of the Government of Pakistan aimed at socio-economic development of the countryís youth. The program will provide a broad canvas of schemes focused on enabling the countryís youth to get employment opportunities.....

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EXCHANGE RATES
Pakistan Open Market Rates

BUYING SELLING
US $ 102.9 103.15
UK POUNDS 158.25 158.5
KUWAITI DINAR 335.65 335.9
SAUDI RIYAL 27.15 27.4
UAE DIRHAM 27.85 28.1
CANADIAN DOLLAR 78.3 78.55
EURO 112 112.25
JAPANESE YEN 0.83 0.86

MORE RATES

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COVER STORY
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CORPORATIZATION OF BALOCHISTAN
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Balochistan has immense potential in corporate sector, which needs to be tapped efficiently. Gwadar, a port city and now the winter capital of the province may be developed as a business corporate hub. The port is still non-functional. It still lacks road and rail connectivity and its usage has so far been restricted to bulk cargo such as wheat and urea. The province has been lacking a corporate culture and hence it witnessed a meager corporate growth over the past many decades if compared with other provinces......

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COVER STORY
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PAKISTAN'S TRIUMPHANT LEAP IN INDIAN OCEAN
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Pakistan recently took a giant triumphant leap in the Indian Ocean where it's well-regarded claim over the continental shelf was unanimously endorsed by the United Nations. It was Pakistan Navy which, for the first time in 1995 drew the attention of national authorities and other stakeholders to the strategic importance of continental shelf. However, it was not until April 2009 before Pakistan formally filed its case with United Nations Commission on the Limits of the Continental Shelf (UNCLCS)....

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COVER STORY
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PAKISTAN RETAINS THIRD SPOT AMONG TOP TEN STOCK MARKET PERFORMERS
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Pakistanís capital market should continue its top most position in the years ahead. It should qualify among the worldís most transparent and fair markets, providing the best opportunities to the investors. The management has already embarked on implementing a long- lasting reforms agenda for the capital market primarily focusing on strengthening of the market monitoring and enforcement regime and introduction of structural reforms for market development and its outreach.....

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3July15 10July15 24July15
NASDAQ

5,009.21

4,922.40

5,146.41

H.SENG

26,173.78

24,941.42

25,101.31

SENSEX

28,053.87

27,557.30

28,291.74

NIKKEI

20,539.79

19,779.83

20,544.53

CAC-40

4,835.56

4,757.22

5,086.74

DAX

11,099.35

10,996.41

11,512.11

FTSE

6,620.60

6,581.63

6,655.01

S&P

2,076.78

2,051.31

2,102.15

DJIA

17,730.11

17,548.62

17,731.92

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As On July 24, 2015

TENOR

BID

OFFER

1 Week

6.37

6.87

2 Week

6.37

6.87

1 Month

6.38

6.88

3 Month

6.70

6.95

6 Month

6.78

7.03

9 Month

6.80

7.30

1 Year

6.85

7.35

2 Year

7.16

7.66

3 Year

7.55

8.05

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RESEARCH CORNER
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MIXED MOVEMENT AT LAHORE, ISLAMABAD STOCK EXCHANGES
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Some experts hope that capital markets in 2020 would look very dissimilar than they do nowadays. Based on feedback from customers, many have gloomily estimated a shrinking capital markets landscape, overregulation and the decline of traditionally influential financial center like New York and London. However, number of experts have a unlike vision for 2020 Ė one of a new equilibrium. This equilibrium comprises of a traditional monetary axis of power more solidifying their conditions at the major and the world seeking stability and inevitability in the context of riskier and additional uncertain geopolitical conditions......

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BUSINESS QUOTATIONS
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The reality is that business and investment spending are the true leading indicators of the economy and the stock market. If you want to know where the stock market is headed, forget about consumer spending and retail sales figures. Look to business spending, price inflation, interest rates, and productivity gains.
MARK SKOUSEN
Agriculture is not crop production as popular belief holds - it's the production of food and fiber from the world's land and waters. Without agriculture it is not possible to have a city, stock market, banks, university, church or army. Agriculture is the foundation of civilization and any stable economy.
ALLAN SAVORY
One of the very nice things about investing in the stock market is that you learn about all different aspects of the economy. It's your window into a very large world.
RON CHERNOW
I never attempt to make money on the stock market. I buy on the assumption that they could close the market the next day and not reopen it for five years.
WARREN BUFFETT
If stock market experts were so expert, they would be buying stock, not selling advice.
NORMAN RALPH AUGUSTINE
One of the funny things about the stock market is that every time one person buys, another sells, and both think they are astute.
WILLIAM FEATHER

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COVER STORY
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SBPís POLICY RATE REMAINS UNCHANGED AT 6.5PC
INFLATION AT 10-YEAR LOW, LOW INTEREST RATE PUSHES UP PRIVATE SECTOR CREDIT DEMAND

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The sharp decline in inflation coupled with positive movement in the economy, the State Bank of Pakistan has decided to keep the SBP Policy Rate unchanged at 6.5 per cent, said the Governor State Bank of Pakistan, Ashraf Mahmood Wathra while explaining the Monetary Policy Review at the week end.
The Governor SBP has also advised the representatives of the exchange companies to play their due role in mitigating the negative impression about artificial shortfall of foreign currencies in the country.

The expected higher consumption in low interest rate environment, planned increase in development spending, and budgetary incentives for construction sector could provide some thrust to growth. Moreover, implementation of infrastructure projects planned under the China-Pakistan Economic Corridor (CPEC) and addressing structural issues especially related to energy and security would create favorable investment environment, which is necessary to sustain economic growth over the medium to long term, macroeconomic stability thus achieved should reflect positively on real economic activity going forward, said SBP Governor......

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CURRENCY CONVERTER
(Open Market)

 EURO:

 US DOLLARS:

 UK POUNDS:

 Japanese YEN:

 SAUDI RIYAL:

 UAE DIRHAM:

 KUWAITI DINAR:

 CANADIAN DOLLARS:

 PAKISTANI RUPEES:

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THIS WEEK TOP STORIES

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CAPITAL MARKET
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STOCK REVIEW
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KSE-100 Index hit an all-time high this week by crossing the psychological barrier of 36,000 levels coupled with an unusual rise in market volumes of 783 million shares as the market traded at a decade high volumes in the last trading session of the week on Friday.
After the break of Eid holidays, the bullish run was, however, subsided due to depressed oil prices affected the oil stocks movement in the market. The Index, however managed to close at 35,815. The Average Daily Turnover (ADTO) rose by a hefty 38 per cent WoW to clock in at 660 million shares, while the average daily value traded rose 11 per cent to US$160 million...

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