June 06 - June 12, 2005 
ISSUE # 23 

The regulators seem determined to beef up efficacy of the already laid regulations with regard to risk management and cut the market manipulators to size and that could lead to trim the activities to a modest level unlike huge turnovers witnessed in recent past.
Keeping in view the strong fundamentals on economic as well as corporate sector front, the market has all reason to behave stable in the next fiscal year. The deadlock between the SECP and KSE has been over now which large arose with regard to futures trade.
In a last week meeting between KSE management and SECP a number of decisions were taken to boost stock market morale. The position limit in future trading

has been enhanced from one percent to three percent in each scrip by each member based on free float. The 3 percent maybe enhanced to five percent on the implementation of pre-trade verification at the KSE by July 2005.



The Oil & Gas Regulatory Authority (OGRA) has approved a 5% increase (Rs10/mmbtu) in prices of gas. The two gas distribution companies are planning to implement this increase from July 1, 2005. The only thing pending is approval from the government. This increase has been brought about due to increasing international oil prices, which in turn is causing a jump in the gas well-head prices. This increase is going to affect the economy across the board, but electricity consumers will be the worst hit because of hike in electricity tariff.

Textile exports projected at US$ 11.16 billion mark for the first time in the history of Pakistan must be the highlight of the financial year 2004-05. Though the textile industry was eyeing for a $15 billion target for 2005-06, it seems modest approach on the part of the high profile textile industry, which has invested over $5 billion in BMR coupled with a bumper cotton crop of 15 million bales besides market appetite in the wake of quota safeguards imposed on China by the United States Administration.