US to sell Indonesia Army Helicopters in $500m contract

US: The spoke person said, The US has agreed for the first time to sell new AH-64E Apache attack helicopters to Indonesia.

The deal is worth $500m (£320m), including radar, training and maintenance. Indonesia will purchase eight new Apache helicopters, made by Boeing. The deal was announced during a visit by US Defence Secretary Chuck Hagel, who is on a tour of South East Asia, to Jakarta. He said, “Providing Indonesia these world-class helicopters is an example of our commitment to help build Indonesia’s military capability.” He added, the deal will help Indonesia respond to “a range of contingencies including counter-piracy operations and maritime awareness”. The US has recently stepped up its diplomatic efforts in East Asia in order to establish a strong presence there in the face of advances by China, correspondents say.

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Link: (http://www.marketwatch.pk/news/international-business-news/us-to-sell-indonesia-army-helicopters-in-%24500m-contract)

Lack of triggers prevents investor from business

At the start of this week, country’s large stock exchange is observing monotonous business activity. It seems that the current political chaos has hampered the investors to conduct any activity as if they are playing a waiting game, when all circumstances will turn into their favor. Well it’s just like being at the risk of a volley of eggs to the investor’s forehead, quite idealistic condition. Stock market is not a place to idealize frankly speaking it’s a place to speculate to know the undercurrents and bear the risk. Well, what we have analyzed in the last two days open market rates and volume was insignificant and shareholders hang out on the side-lines to seize upon any chance for selling. It endures, because the local investors do not follow business directions, they only wait for a trigger that can lead them to do some business activity. As the investors is getting use to of political strife that helps to resolve the conflicts what they are directed to do in certain conditions.

Why investors play waiting game:

The KSE standard 100-share index drop 0.55% or 89.76 points to end at the 17,872.15 point level. Trade volume remains insignificant, closed at 150 million shares comparing it with Monday’s closing of 154 million shares. Samar Iqbal, head of equity sales at Topline Securities remarked over this issue “In absence of any triggers, investors preferred to stay on the sidelines as volumes remained low,”Decline in the index-heavyweights, Oil and Gas Development Company (OGDC) and MCB Bank, took their toll on the index, while investor interest seemed to shift towards dividend yielding stocks,” he further added. Moreover for investors the making of caretaking government is very important and the upcoming days will define the business lineup and it will help in stabilizing the foreign exchange rates in Pakistan.

Boost in power and fertilizer sector:

Fertilizer and oil stocks Like Hub Power Company boost to the top.it sems that mars and Venus are eventually collided, huge profit-taking comes into the share of Engro Corporation OGDC and Pakistan Oilfields. Telecom sectors maintain its reputation while the rumor of lower international incoming calls rates is in the air. Total companies who participate trading are 327 on Tuesday. On the close of the market the shares of 112 companies are traded on higher rate and the share of 173 companies experience decline in their value. The total value of shares did business was Rs. 3.83 billion. Hub Power company was in spotlight managed to close its business in black in terms of dividend-yielding stock. This all is done due to the exclusive business news announced by HUBCO that the 84 mrgawat New Bong Hydropower Project owned by Hubco’s 75% held subsidiary Laraib Energy, will start working two months before it schedule. This news is enough to grab the interest of the investors, and it has a very positive impact on the parent company’s income statements. Another source of earning has opened for HUBCO through this project.

KSE Fell 390 points as local, foreign investors off load

The Karachi stock exchange showed the declining tendency driven by foreign selling on Monday. It is estimated that local business is not getting affected due to this slanted tendency. The stock exchange lowers down in day trading by 790 points, thus, most of the shares get down due to this effect. Meanwhile the entrepreneurs took the charge and help the stock exchange to regain its lost position somehow by the end of the day in an attempt to strengthen the forex rates.

It is reported that Karachi stock exchange Benchmark 100-share index lost 1.69%or 390.57points by the end of the day. The KSE benchmark 1900- index is closed on 22, 7013 point level. Meanwhile the trade volume shows high tendency up to 232 million shares in comparison with Thursday total of 199 million shares. The stock exchange was closed on Friday. Market is always under the dust of rumors. There were rumors of increase in interest rate that led its charges on the market. It furthers pull the hands of the investors thus killing the KSE trading day to lost 790 points before it getting improved.

At the first day of the week bearish trend has dominated the stock exchange when KSE 100 index was closed at 391 points. Selling was started in bourse when Engro foods touch the lower ground at the beginning of the day, reported analyst. The stock market has lost 1.600 points since the beginning of the new business year.

By taking an overview over the stock market intraday, 338 companies have participated in trading on Monday. By the end of the day 71 companies’ stocks gone higher and 236 companies showed the declining position over their stocks. Thus 31 remain stagnant. The total value of the shares operated all the day was worth Rs. 10.13 billion. The oil and gas sector showed a stable position, the exploration giant oil and gas Development Company closed in black due to its forthcoming dividend business news. 

The announcement regarding dividend is expected today thus attracting the local buyers to take special interest in its stock purchase. Pakistan oil fields and Attock refinery following the same trend and showing full year dividend expectation also, thus make every possibility of increase in stock value.

Fauji cement was the cheer leader with 24.17 million shares, loses the value of its stock Rs.0.79 and finish at Rs. 14.97.followed by Bank of Punjab with 14.73 million shares by losing its stock value of Rs0.61 to close at Rs12.67 and Maple Leaf Cement with 14.61 million shares shows a rising trend Rs0.06 to close at Rs29.75. Foreign institutional investors were buyers of Rs1.07 billion and sellers of Rs851 million, according to data maintained by the National Clearing Company of Pakistan Limited. However at the start of the week, confusion is prevailed throughout the day, thus causing of decline of stock market thus affecting the currency exchange rates.