Pak foreign investment decreases

Pak foreign investment decreases during the last week.
During the week ended on 9th of January, Pakistan foreign investment decreased by 16.9 million dollar in spite of bullish KSE. US investors made 1.4 millions dollar investment while British investors pulled 47 millions dollars from the market.

China reassures US on key ‘rare earth’ minerals

China has reassured the US it has no intention of withholding rare earth minerals from the market, the US Secretary of State has said.
China suspended export of the metals, key to some high-tech industries, to Japan after a diplomatic spat. The US has pressed China, which has pledged not to use the minerals as a diplomatic weapon, to defuse the row.
Representatives from China and Japan also held informal talks on the fringes of an Asean conference in Vietnam. US officials said Hillary Clinton’s Chinese counterpart, Yang Jiechi, told the US secretary of state that his country would not use rare earths as a diplomatic, political or economic tool in dealing with other countries.

Karachi: Shershah traders announce indefinite closure

Shershah Market of Karachi where unidentified armed men killed 12 people would not open today as traders of the market have announced to close the market indefinitely.
Traders had demanded the government to provide security which was not addressed. Shershah Scrap Market has more than 8,000 shops and hundreds of people are working there. Motor mechanics, electricians, plumbers and others used to buy scrap from the market but its closure is creating problems for them. Due to which, jobs of hundreds of people are at risk.
Karachi police has received a forensic report of arms used in firing at Shershah area. The police had sent bullets found from the market to the forensic laboratory. It is revealed in the report that four kind of arms were used in the incident in which 4 SMGs, 4 9MM and one 30-bore pistol were used. Statements of different were also recorded in the investigation of the incident.

Global stock markets dive on China, Spain concerns

LONDON: World stock markets sank on Thursday as weak Chinese data sparked fresh fears about the global economy on the first day of the third quarter, amid deep concern about Spain”s sovereign debt rating.

In morning deals, London lost 1.27 percent, Frankfurt fell 1.07 percent and Paris shed 1.95 percent on the back of mounting economic jitters.

Madrid tumbled by more than 3.0 percent after international ratings agency Moody”s put Spanish government debt on review for a possible downgrade late on Wednesday, stoking eurozone debt crisis jitters.

However, the Madrid market clawed back ground later on Thursday to show a loss of 1.8 percent, after a successful debt bond placing.

“The FTSE opened in desperate fashion this morning on the news that China”s manufacturing growth has slowed and Spain”s sovereign debt problems have intensified,” said IG Index senior sales trader Yusuf Heusen.

Asian stocks also fell heavily on the Chinese data and global economic fears, despite growing business confidence in Japan.

Manufacturing activity in China slowed in June, official and independent surveys showed Thursday, suggesting that government efforts to cool the fast-growing economy are working.

The HSBC China Manufacturing PMI, or purchasing managers index, fell to 50.4 last month from 52.7 in May, the bank said. A reading above 50 means the sector is expanding, while below 50 indicates an overall decline.

A separate survey released by a government agency on Thursday showed manufacturing activity slowed to 52.1 in June from 53.9 in May.

“Investors continued to sell risky asset classes and pull their money out of stocks, fearing a wider equity decline after poor Chinese manufacturing data show signs of slowing growth,” said City Index analyst Joshua Raymond.

“The slowing Chinese manufacturing data, which was worse than expected, is the main driver behind today”s weakness in the miners with investors now fearing that slowing growth in China could impact on metal demand and company earnings.”

Spain successfully placed debt bonds to borrow 3.5 billion euros for five years, a bond expert said.

The Spanish government borrowed the equivalent of 4.3 billion dollars, at an average yield or interest rate of 3.657 percent, the bond strategist said.

In reaction, the European single currency rose to 1.2279 dollars in morning London trade, compared with 1.2228 late in New York on Wednesday.

“The markets” relief at a successful Spanish auction has boosted the euro in the short term,” said CMC Markets analyst Michael Hewson.

“However, any upside will continue to remain limited while concern over solvency of European banks continues to weigh on the market.”

Elsewhere in Asian stock markets, Sydney lost 1.49 percent, closing at the lowest in 11 months, and Singapore dipped 0.48 percent. Hong Kong was closed for a public holiday.

And Tokyo slumped 2.04 percent to finish at 9,191.60 points, its lowest since November 2009, despite a central bank announcement that Japanese business confidence had reached its highest level in two years.

Japan”s index of sentiment among major manufacturers rose for a fifth straight quarter to one point in June from minus 14 in March, according to the closely watched Tankan survey.

“A better-than-expected Tankan survey in Japan was overshadowed by Moody”s announcement that it may cut Spain”s credit rating,” said Rabobank analysts in a note to clients.

In New York on Wednesday, stocks fell owing to poor employment data and jitters about Europe, capping Wall Street”s worst quarterly performance in more than a year.

The Dow Jones Industrial Average slid 0.98 percent to end Wednesday at 9,774.02, a day after Wall Street shares slipped more than two percent and below the psychologically-sensitive 10,000 level.

The Dow has fallen 3.5 percent in June and for the quarter it fared even worse — losing 10 percent — the worst quarterly loss since its 13 percent drop in the first quarter of 2009.

LHC bans trading of rotten eggs

LAHORE: Lahore High Court has ordered federal and provincial governments to ban trading of rotten eggs. LHC issued the order on request of a citizen who pleaded that bakery products produced with rotten eggs were harmful for health and should be banned.

Punjab Livestock Department also submitted a report saying rotten eggs were contagious to health.

KSE dull lacklustre new tax weighs on sentiment

KARACHI: Local stocks remained dull on Thursday with turnover at its lowest level in 18 months, as a new capital gains tax introduced in the market kept investors away from the market, dealers said.

The Karachi Stock Exchange”s (KSE) benchmark 100-shareindex, however, ended a marginal 0.09 percent, or 9.08points, higher at 9,730.99.

Turnover was only 20.83 million shares, compared with 71.29million shares traded on Wednesday, and lowest since December 2008.

In its budget for the 2010/11 fiscal year, the government imposed a capital gains tax of 10 percent on stocks held for six months or less and 7.5 percent on stocks held between 6months and a year.

The tax is applicable from Thursday, the start of the new fiscal year.

Some dealers said that trade volumes are likely to improve once margin buying is reintroduced in the market.

The KSE authorities and the Securities and Exchange Commission of Pakistan (SECP) met last week to discuss margin buying and other leveraged products, and decided to form a committee, which is required to submit its recommendations within 15 working days.

The interbank currency and money markets were closed on Thursday for a bank holiday.

Oil Drops To Near $80 In Asia

SINGAPORE : Oil prices dipped to near 80 dollars a barrel in Asian trade on Monday, extending last week’s losses which were caused by gains in the US dollar.

New York’s main contract, light sweet crude for April delivery was down 50 cents to 80.18 dollars a barrel. London’s Brent North Sea crude for May delivery shed 39 cents to 79.49 dollars a barrel.

“The market’s downward movement today is likely due to the fallout from the market’s sentiment on Friday,” said David Moore, a commodity strategist with the Commonwealth Bank of Australia in Sydney.

The oil market Friday took a hit from a stronger greenback which sent the New York contract slumping 1.52 dollars, briefly dropping below the psychological barrier of 80 dollars per barrel.

A stronger US unit makes dollar-denominated crude more expensive for buyers using weaker currencies and so tends to dampen oil demand and prices.

Prices fell sharply last week as investors sought the safe-haven greenback on uncertainty over international assistance for debt-plagued Greece.

SBP conducts OMO

KARACHI: The State Bank of Pakistan (SBP) injected Rs85 billion at 12.13 percent markup for seven days to ease the liquidity shortage in the banking systems, Geo News reported Saturday. According to money dealers, the central bank conducted Open Market Operation to remove the scarcity of liquidity from the market.

KARACHI: The State Bank of Pakistan (SBP) injected Rs85 billion at 12.13 percent markup for seven days to ease the liquidity shortage in the banking systems, Geo News reported Saturday.

According to money dealers, the central bank conducted Open Market Operation to remove the scarcity of liquidity from the market.

The banks offered the SBP the purchase of Treasury Bills worth Rs85.40 billion, which the central bank accepted at 12.13 percent markup rate for 7 days.

According to market dealers, the banks faced the shortage of liquidity after the banks paid Rs102 billion to the central bank in maturities, after which the central bank conducted the OMO.

Gold hits record high in International market

LONDON: Gold rose back above $1,060 on Tuesday as more investors overlooked a dollar rally and responded positively to news the International Monetary Fund sold 200 tonnes of gold to India’s central bank.

Spot gold was quoted at $1,062.00 an ounce, up from $1,059.15 quoted late in New York on Monday. Earlier on Tuesday, the metal hit a near two-week high of $1,066.15, within sight of the October 14 record high of $1,070.40.

“The IMF (news) is bullish but look at copper prices, look at the euro dollar, look at stock markets, it’s very impressive gold can actually rally given all other risky assets are falling,” said senior commodity strategist at Societe Generale Jesper Dannesboe.

The IMF said on Monday it had sold 200 tonnes of gold to India for $6.7 billion. Although an IMF gold sale had been flagged for some time, it lifted some uncertainty from the market by helping soak up supply.

US gold futures for December delivery rose $9.40 an ounce to $1,063.30 on the COMEX division of the New York Mercantile Exchange. Last month, futures hit a record $1,072 an ounce.

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Gold hits record high in International market was first posted on November 4, 2009 at 10:14 am.