The Karachi Stock Exchange (KSE) has formed an index committee to weigh the merits and demerits of making the benchmark 100-share index a “free-float”, said KSE Managing Director Nadeem Naqvi on Wednesday. Also, Nadeem Naqvi said the Exchange has increased the volume of compensation to Rs75 million to be paid from the Exchange’s Investors Protection Fund (IPF) to the affectees of brokerage defaults in wake of the market crises of 2008.
“The index committee would send its proposals to the KSE board in its next meeting to make the index a free float,” Naqvi told a journalist while giving a presentation to the media on “Karachi Stock Exchange: Issues and Prospects”, here at KSE on Wednesday.
MD was questioned about the take on the impression that KSE 100-share index was not a true benchmark for the stock market, where the heavyweights, like OGDC had a great role in influencing the index. He said Pakistan was not the only country to have a stocks market with heavyweights like OGDC and Nestle Pakistan; emerging markets like Singapore also have the same problem.
After acceptance of the index committee’s proposals, he said, the weight of OGDC and Nestle would be brought down to seven per cent of the index.
About the compensation matter, he said the affectees of 2008 crisis would be compensated to the extent of Rs75 per broker and those affected by the default of Capital 1 would receive their compensation checks.
To a query, the managing director said the number of total claims was 3,621 that amounted to Rs2.6 billion in which the compensation was being paid on an average 33-paisa for per rupee loss basis.
Oil sales kick off 2012 on a weak note – down 11pc YoY in Jan 2012
KARACHI
STAFF REPORT
Oil consumption in the country stood at 1.46mn tons in Jan 2012 versus 1.64mn tonnes in Jan 2011, a decline of 11per cent YoY. The major reason for the decline in consumption was the fall in sale of Furnace Oil (FO), which is down 15per cent YoY amid the circular debt.
Moreover, Jet fuel sale is also down by 54per cent YoY owing to the Pakistan government halting supplies to NATO forces in Afghanistan and withdrawing duty exemptions on oil exports to Afghanistan. However, Motor Gasoline demand witnessed an increase of 25 per cent YoY because of enhanced CNG load shedding in the country, despite a substantial increase of 23per cent YoY in product price. Cumulatively in 7MFY12, oil demand reached 11.3mn tons vs. 11.4mn tons in the corresponding period last year, a fall of 0.1per cent YoY. Pakistan State Oil’s overall sales are down eight per cent YoY in Jan 2012. While High Speed Diesel (HSD) volumes increased by one per cent YoY, FO sales went down by 16 per cent YoY. MOGAS sales witnessed a robust growth of 31per cent YoY. In 7MFY12, PSO sales reached 7.3mn tons (down 0.2per cent) with a market share of 64.2per cent. Attock Petroleum’s sales remained flat at 127k tons versus the decline in the overall industry. MOGAS and HSD sales went up by 20 per cent YoY and 35 per centYoY, respectively while FO sales declined by 13 per cent YoY. In 7MFY12, APL witnessed an impressive growth of 27 per cent YoY to 932k tonnes, with a market share of 8.2 per cent.