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Chinese stocks continue fall but other Asian markets rise

china stock market

A man looks at an electronic board displaying stock prices at a brokerage house in Beijing on Tuesday, Jan. 26, 2016.

BEIJING – Chinese stocks sank again Wednesday but other Asian markets rose following Wall Street’s gain as investors looked ahead to the U.S. Federal Reserve’s latest statement on interest rates and the economic outlook.

KEEPING SCORE: China’s Shanghai Composite Index shed 2.4 per cent to 2,682.65, adding to Tuesday’s 6.4 per cent loss. The Chinese benchmark has now given up almost all the gains made since December 2014. Japan’s Nikkei 225 rose 2.6 per cent to 17,142.52 and Hong Kong’s Hang Seng was up 0.8 per cent at 19,015.18. South Korea’s Kospi gained 1.4 per cent to 1,897.87 and India’s Sensex advanced 0.4 per cent to 24,520.52. Markets in Taiwan and Southeast Asia also gained. Australia’s S&P/ ASX 200 lost 1.2 per cent to 4,946.40 and New Zealand also declined.

WALL STREET: U.S. stocks jumped as the price of oil made another abrupt reversal and rose 4 per cent following a decline the previous day. Chevron and Exxon Mobil made major gains. Strong fourth-quarter results from beleaguered wireless provider Sprint gave telecom stocks a boost. The Dow Jones industrial average jumped 282.01 points, or 1.8 per cent, to 16,167.23. The Standard & Poor’s 500 index rose 26.55 points, or 1.4 per cent, to 1,903.63. The Nasdaq composite index added 49.18 points, or 1.1 per cent, to 4,567.67.

FED PLANS: Investors were watching Wednesday’s Fed statement for signs of the pace of possible future rate hikes. The U.S. central bank raised rates last month for the first time since the 2008 global crisis, citing improved inflation and other data. But uncertainty over the strength of the dollar, low oil prices and China’s outlook have prompted warnings against raising rates too fast.

ANALYST’S QUOTE: Fed officials will probably want to acknowledge the extra uncertainty raised by recent financial and international developments, said Jim O’Sullivan of High Frequency Economics in a report. “But they will likely also want to avoid encouraging the perception that a relatively modest bout of risk aversion in markets or mixed signals from the data will promptly change their outlook in a major way.”

ENERGY: Benchmark U.S. crude shed 33 cents to $31.12 per barrel in electronic trading on the New York Mercantile Exchange. The contract soared $1.11 on Tuesday to close at $31.45. Brent crude, the benchmark for international oils, fell 3 cents to $31.77 per barrel in London. It jumped $1.30 on Tuesday to $31.80.

CURRENCIES: The dollar weakened to 118.10 yen from Tuesday’s 118.31 yen. The euro inched up to $1.0868 from $1.0864.

Pakistan Stock Exchange to start operations from 11th Jan, 2016


The Pakistan Stock Exchange is going to start its operations from January 11 (Monday), unifying Islamabad, Lahore and Karachi stock exchanges into a single entity, providing level-playing field to all investors in a more transparent way and involving minimum human element.

This was informed during a presentation of Pakistan Stock Exchange given by the Karachi Stock Exchange Managing Director Nadim Naqvi here on Wednesday. He apprised the participants about the arrangements made for launching ceremony of Pakistan Stock Exchange Limited.

Nadim Naqvi said that the emergence of a single, national capital market will create a large liquidity pool, enabling scores of brokers to serve existing and prospective investors throughout the country in a better way. The concurrent provision of the Exchange’s new Internet Trading Platform will enable brokerage houses to provide their clients with real-time services without the need for large IT infrastructure. The PSE will create small and medium-sized brokers that are highly focused on core business functions such as client acquisition and equity sales.

He said that launch of the Pakistan Stock Exchange Limited marks the achievement of a significant milestone. He said that with appropriate and continued reforms, this achievement will facilitate development of Pakistan’s capital and financial markets besides strengthening the economy.He appreciated the unity displayed by the stakeholders for successful establishment of the single unified stock exchange, hoping the foreign counterparts will see the unified stock exchange as a profitable investment partner, given the improving economic and capital market landscape of the country.

“On January 11, 2016, the three stock exchanges of Pakistan will merge to become the Pakistan Stock Exchange (PSX). There are 555 companies listed on these exchanges with a total market capitalization of $67 billion presently. The investors on the exchanges include 1,886 foreign institutional investors and 883 domestic institutional investors along with about 0.22 million retail investors. There are also about 400 brokerage houses which are members of the three stock exchanges as well as 21 asset management companies. As an amalgamation of all these invaluable attributes, the PSX represents a quantum leap forward for the country’s capital market.”

The unification of these three entities is made possible through the combined efforts of myriad stakeholders. The vision of the government was adopted by the Securities and Exchange Commission of Pakistan (SECP). The Apex regulator of the country has heralded this vision to stakeholders of the country’s capital markets and the owners of the three stock exchanges have come together for the national interest. The Central Depository Company of Pakistan, the National Clearing Company of Pakistan have also played an important role in this process.

The people of major cities will enjoy greater access to the capital markets. The PSX will enhancing the culture of savings and investments among the people of Pakistan and provide a tool for the growth of businesses and the economy, he added.