Tag: Pakistan business news live
January 17, 2022 (MLN): The capital market remained dull during the first session of the week owing to the lack of fresh triggers. Growing concerns over increasing Covid-19 cases across the country have pushed the trading floor under selling pressure which led the benchmark KSE 100 index to lose 151.25 points as the index settled at 45,612.20.
Investors were also worried over higher international commodities prices which led the market to open sideways, where the market made an intraday low of 377 points.
Initial pressure came from TRG where stock touches its lower limit in the first hour of the session followed suit by other Technology stocks as AVN, OCTOPUS and SYS closed lower, post-market note by Topline Securities stated.
Of the 92 traded companies in the KSE100 Index 34 closed up 56 closed down, while 2 remained unchanged. The total volume traded for the index was 71.63 million shares.
Sector-wise, the index was let down by Technology & Communication with 101 points, Commercial Banks with 28 points, Refinery with 22 points, Textile Composite with 7 points and Insurance with 7 points.
The most points taken off the index was by TRG which stripped the index of 88 points followed by HBL with 17 points, AVN with 11 points, NRL with 8 points and CNERGY with 8 points.
Sectors propping up the index were Cement with 21 points, Power Generation & Distribution with 10 points, Fertilizer with 7 points, Pharmaceuticals with 5 points and Automobile Assembler with 3 points.
The most points added to the index was by LUCK which contributed 21 points followed by HUBC with 16 points, FFC with 7 points, GLAXO with 6 points and POL with 6 points.
All share volume decreased by 66.48 million to 173.50 million shares. Market cap decreased by Rs24.29 billion.
Total companies traded were 336 compared to 350 from the previous session. Of the scrips traded 102 closed up, 218 closed down while 16 remained unchanged.
Total trades decreased by 4,384 to 84,943.
Value Traded increased by 0.01 billion to Rs6.10 billion
|Alfalah Consumer Index (ETF)||6,820,500|
|Ghani Global Holdings||5,007,000|
|Technology & Communication||63,404,209|
|Food & Personal Care Products||13,051,132|
|Inv. Banks / Inv. Cos. / Securities Cos.||7,476,000|
|Exchange Traded Funds||7,222,000|
|Oil & Gas Marketing Companies||7,002,274|
|Power Generation & Distribution||6,177,804|
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January 17, 2022 (MLN): The management of Zahur Cotton Mills Limited (ZHCM) has received an in-principle inquiry from a multinational Information Technology (IT) company, through their financial advisor's Frontline Advisory Private Limited for the proposed merger with ZHCM.
The aforesaid information was disseminated by the company through a notice to Pakistan Stock Exchange.
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January 17, 2022 (MLN): VIS Credit Rating Company Limited (VIS) has reaffirmed the entity ratings of Thal Power (Private) Limited (TPPL) at ‘AA/A-1+’ (Double A /A-One Plus), said a statement issued by VIS on Monday.
The long-term rating of ‘AA’ signifies high credit quality and strong protection factors. Risk is modest but may vary slightly from time to time because of economic conditions. The short-term rating of ‘A-1+’ signifies the highest certainty of timely payment; short term liquidity, including internal operating factors and /or access to alternative sources of funds, is outstanding and safety is just below risk-free Government of Pakistan’s short-term obligations.
Outlook on the assigned ratings is ‘Stable’. The previous rating action was announced on December 29, 2020, the statement added.
TPPL is a wholly-owned subsidiary of Thal Limited (THAL); the assigned ratings derive strength from the strong sponsor profile. THAL is a diversified national conglomerate engaged in the manufacturing of engineering products, jute products, paper sacks and laminated products; it also holds investments in real estate and energy sectors.
TPPL was set up by THAL as a special entity for the purpose of routing its investment in ThalNova Power Thar (Private) Limited (ThalNova). Thal Ltd. owns 26% ordinary shareholding in ThalNova through TPPL.
The statement further added that ThalNova is a joint venture between TPPL, Nova Powergen Ltd (a subsidiary of Novatex Ltd), CMEC ThalNova Power Investments Limited (a subsidiary of China Machinery Engineering Corporation) and Hub Power Company Limited to set up a 330 MW mine-mouth coal-fired power generation plant located at Thar, Sindh.
This power plant will be run on indigenous coal extracted from the mine operated by Sindh Engro Coal Mining Company Limited. The Power Plant is listed under Priority Projects under the China Pakistan Economic Corridor (CPEC). ThalNova achieved its Financial Close on September 30, 2020. The Project is expected to come online in 2022, the statement noted.
THAL has undertaken to invest PKR equivalent of USD 34.3m in the project and of this, USD 13.0m has already been injected. The balance commitment of the investment is USD 21.3m in PKR equivalent for which a standby letter of credit is in place, with validity until 2023, to be periodically extended and amount to be adjusted in line with PKR devaluation.
The project is exposed to completion risk and any adverse changes in regulatory framework or delay in achieving commercial operations date may impact the assigned ratings, it said.
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January 17, 2022 (MLN): Interloop Limited (ILP) has informed that its Hosiery Division V plant is fully operational as the company successfully commissioned and installed all 1,200 machines, according to the progress report issued by the company today to PSX.
The company said that infrastructure and building-related works have also been completed.
The management is confident that this plant will gradually achieve further efficiencies and contributes towards the profitability of the company.
With regards to the company’s Denim project, the report said that it has successfully completed the first phase of the Denim project by installing a capacity of 20,000 units per day which is gradually making its place in European and North American markets
The project started its commercial operation in the Second Quarter of FY2020.
Whereas, the company has planned to enhance installing capacity of the second phase of the Denim project to 40,000 units per day. The project is completed in terms of infrastructure since nearly 83% of the budget has already been consumed. The management is striving to bring the first phase into profit before going into the second phase of the Denim Project.
The project cost has been enhanced to PKR8.325 billion from an initial estimate of PKR6.75 billion for the Denim project due to the devaluation in PKR and trial run losses. The increase in cost will be financed by internal cash generation.
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January 17, 2022: Three fuel trucks exploded and a fire broke out near Abu Dhabi airport on Monday in what Yemen's Iran-aligned Houthi group said was an attack deep inside the United Arab Emirates.
The Houthi movement, which is battling a Saudi-led coalition that includes the UAE, has frequently launched cross-border missile and drone attacks on Saudi Arabia, but has claimed few such attacks on the UAE, mostly denied by Emirati authorities.
Abu Dhabi police said three fuel tanker trucks had exploded in the industrial Musaffah area near storage facilities of oil firm ADNOC and that a fire broke out at a construction site at Abu Dhabi International Airport.
"Initial investigations found parts of a small plane that could possibly be a drone at both sites that could have caused the explosion and the fire," the police said in a statement on state news agency WAM.
There was no "significant damage" from the incidents and a full investigation has been launched, the statement added.
The Houthi's military spokesman said the group launched a military operation "deep in the UAE" and would announce details in coming hours.
UAE authorities and ADNOC did not immediately respond to Reuters' requests for comment. The coalition's spokesman did not immediately respond.
Pro-coalition forces backed by the UAE recently joined fighting against the Houthis in Yemen's energy-producing regions of Shabwa and Marib.
The UAE had largely scaled down its military presence in Yemen in 2019 amid a military stalemate and heightened regional tensions with Iran, but continues to hold sway through Yemeni forces it armed and trained.
The Houthis, who ousted the internationally recognised government from the capital, Sanaa, in late 2014, prompting the coalition to intervene, have said that their growing military capabilities would allow the group to target the UAE.
In July 2018, the UAE denied reports that the Houthis attacked Abu Dhabi airport with a drone. A month later, Dubai International Airport said it was operating as normal after Houthi-run media said the group launched a drone attack there.
In December 2017, the Houthis said they fired a cruise missile towards a nuclear power plant in Abu Dhabi, which Emirati authorities denied.