Market bounce back
The SEC has directed the CSE and CDS to
mandate the lodging of certificates pertaining to all listed securities
at the Central Depository Systems and thereby implement a system of
dematerialization for all listed securities. Under this securities of
new listing will be in de-mat from January 1 next year and securities of
all existing listing entities which obtain listed status before January
1, 2011 to be in dematerialized from within a transitional period of one
year from January 1, 2011 and to give prior notice to the existing
listed entities of the said requirement.
The market saw a turnaround yesterday with the ASPI moving up close
to about 200 points.
Speaking to the Daily News Business Securities and Exchange
Commission (SEC) Director General Malik Cader said the market is in the
upward trend and the momentum will continue.
He said the SEC extended the dead line on clearing debt as they have
noticed a high position of debtors. This will give the investors
sometime to settle their debts. However, SEC will soon have a
deliberation with the stockbrokers and will setup a concrete mechanism
to have a smooth functioning of the capital market.
“Yesterday the market rose as there were around Rs 2.5 billion
strategic parcel transactions. The Laugf Gas has also refunded its
Initial Public Offering (IPO) funds last week and it has provoked the
activities in the secondary market again.
Thus, the market will have a positive trend within the next couple of
days as there are funds moving in,” Cader said.
Every time when there is a good IPO the secondary market shows a
downward trend. The main reason for this is that the investors sell
their shares at secondary market and buy shares from the primary market
as the capital gain in the primary market is much higher.
He said 44 percent of the CSE turnover is from the domestic retail
investors. Most of these investors applied for Laugfs IPO however due to
the new regulations of the SEC the investors did not have sufficient
funds to be active in the market. This was one of the reasons for the
recent market dip. However, with Laugf starting to reimburse the balance
sum of money to the investors, the market has shown an upbeat trend
According to BMS Daily Report the benchmark ASPI climbed 177.84
points (2.84 percent) to close at 6434.85 points yesterday while the MPI
jumped 170.37 points (2.50 percent) to end the day at 6988.54 points.
Both retail and institutional buying was evident yesterday, with most
of yesterday’s revenue was generated by key block deals that occurred
across the board.
Foreign investor buying overran selling, generating a net foreign
inflow of Rs 231.8 million.Price gainers came under limelight with 202
seeing appreciations while only 21 dipping in prices.
Turnover for the day was Rs 4.8 billion. CdeS