BSE and KSE

karina · December 2, 2003, 11:59pm

Friends, sensex is preparing to hit the roof. February will probably make ALL TIME HIGHS. Be bullish. Time for bears to hibernate. Stay away from low volume low capital and obscure scrips. They are traps. Remain in front liquid stocks. Some of the Indian stocks that may make waves are -

Reliance
Infosys
Wipro
Zee tele
Tata chem
Tisco
VSNL
Polaris
ACC and almost all Tata stocks

There are many more, do some research.

The reason is a huge capital flow towards India currently and tipped to become larger in the next 2 months. Take future options but get out by February or March latest.

It would be interesting to know if KSE is predicting a similar bull run. And why. Also, is it easy/possible for an Indian to invest in KSE and vice versa?

Umer · December 3, 2003, 6:55am

Re: BSE and KSE

[QUOTE]
*Originally posted by karina: *
It would be interesting to know if KSE is predicting a similar bull run. And why. Also, is it easy/possible for an Indian to invest in KSE and vice versa?
[/QUOTE]

This is a really interesting question. I´ll try to find out and will post my findings here.

Khanzada · December 3, 2003, 8:30pm

Karina: Good. Being not too familiar with the names (apart from a few), it would be nice if you can mention the industries in which these companies operate to get an idea what industries bear top picks from BSE.

Hmm, what you are mentioning means to me that the bull-run at the BSE would be fueled mostly by forein investment and when profit-taking occurs within the next two months, market correction would be observed?

Please also share the current index level and anticipated level within two months (i believe speculations are for BSE to touch 7000 as mentioned in another thread?)

Another thing if you can help us understand is if these stocks are fundamentally strong (i.e. company fundamentals and historic dividend yields) or is bulk of the trading activity speculative in nature?

A brief look at KSE. Market has crossed the 4,300 point psychological barrier yesterday. Top picks being in the telcom, fertilizer, IPPs, Oil ^ Gas etc. (as Mat mentioned in another thread, 5-10 stocks make up a large part of our total market turnover). However, this is occuring at a time when dividend yields are high (KSE dividend yield~10%) and P/E multiples relatively low (market P/E~5-6). What this implies is that the activity is not merely speculative in nature and stocks are trading at more or less their fundamentally-driven fair values. Analysts predict a range-bound instance around the 5,500 point mark within the next 2 months, whereafter market correction may take place but stabilization would occur at around the 5,000 point mark. Secondly, the interest in the market is domestic-investor driven (no foreign fund managers currently active at KSE unlike the previous all-time high of 1994, where the market picked up mostly due to the buying-frenzy of Morgan Stanley and other global fund managers who invested here).

The market is at an all-time high as of now. My (based on analyst calls) picks are Fauji Fertilizer, Pakistan Telecom, Hub Power Co (IPP), Engro Chemical (fertilizer) Oil & Gas Dev. Co. (recently conducted the 2nd largest equity ipo here at KSE (shares worth Rs. 7 bn were on offer and ipo was over-subscribed by about 7 times).

Faisal · December 3, 2003, 9:09pm

KSE's website is down (surprise surprise). What are other websites (of brokers) which allow folks to buy stock in KSE companies online?

Khanzada · December 3, 2003, 9:25pm

www.akdtrade.com

belongs to Seth Aqueel Kareem Dhedhi...one of the biggest brokers here. You can start an account with Rs. 5,000 i believe.

KSE ki sites main kal sahi se bata doon ga..yeh wali ke saath koi tension hai waqai

Faisal · December 3, 2003, 9:33pm

Do these sites only load for people in Karachi? Idher say lagta hai fasla kuch ziyada hi hai

karina · December 3, 2003, 10:54pm

Khanz - Wipro-telecom. Tata -steel, chemicals, agriculture, cars. Reliance -textiles. VSNL- telecom. ACC- cement.

The top brands sound similar in industry to the Pakistani ones. No surprises, I guess we share similar economic patterns?

Yes, you're absolutely on the mark. Market correction has to take place by February. Unless foreign investment goes berserk.

The stocks I have mentioned are fundamentally strong. I need some help here - where is that Matsui when you need him?? I'm quite sure these companies are not based on speculation.

Yes, BSE is tipped to touch 7000. It closed yesterday at 5000. Hmm, that makes it a 40% rise compared to a 10% KSE rise. However KSE certainly promises a stable return.

Changez_like · December 3, 2003, 11:24pm

KSE has been running to top the hill for quite some time now... even when all markets worldwide were running down the hill.... KSE was up the hill.

system · December 4, 2003, 3:01am

changhay! KSe has a market cap of $10 millon...what the fk are you talking about?

Khanzada · December 4, 2003, 1:28pm

^Partner…easy there. Its USD 13.28 billion. Remember, with the ten times industry size of ours that you have, your cap comes out to about the same so on a size-adjusted basis, there is nothing much to pick between the two

Karina: Thanks for the info. :k: It would help if someone can mention the market PER and market dividend yield as well. Stocks look good. What is the total market cap there? i assume close to USD 100 billion. I am not too sure if KSE is 10%, it was the top performing market last year and the current year running as well has seen at least local records tumbling, i am sure it may actually finish up somewhere along the top this year too.

system · December 4, 2003, 1:39pm

KArina in my estimation you can go till mid-feb. Although it could belonger considering the enormous amonts of FII that is coming in. Khanu, even on a arb strategy for FX trading, you can make an easily/guaranteed 7% return due to the continued depreciaton of the dollar.

If I am a betting man in the long term, I would bet sectorally on larger players in pharma and lifesciences and ITES. Companies like Dr. Reddy's labs, Ranbaxy and Cipla are going to continue to eat into the marketshare of the larger players around the world adn are a sure bet on some drug discoveries that are on a mass level.

Changez_like · December 4, 2003, 2:10pm

[QUOTE]
*Originally posted by Matsui: *
changhay! KSe has a market cap of $10 millon...what the fk are you talking about?
[/QUOTE]

mattu the "fk" I am talking about is "rising index".... do you need a definition for that now?

Changez_like · December 4, 2003, 2:12pm

and the market cap is $16 billion check

system · December 4, 2003, 2:25pm

Yes Changez it is $16 billion. And speculative, interest laden capitalist mechanisms. How unislamic. :p

Khanzada · December 5, 2003, 1:33pm

Whoa! Hold it guys..go easy on the big F word...would ya? There may be plenty other instances you may want to use it for..hold it till then. :p

Mat: These pharma companies you mentioned..they sound more like primary drug research companies...right?

What about the IT ones? Are there any big ones on your local bourses...and how are they doing in general?

system · December 5, 2003, 1:49pm

Drug discovery, production adn distribution...they are poised to compete with the likes of Pfizer etal...

Wipro, Satyam. Infosys, TCS, Mindtree, Patni are some of the larger ones. Most of them are also listed on US exchanges via ADR

dhir · December 8, 2003, 6:06am

Re: BSE and KSE

Karina, here is a report that may be of interest to you in this regard
http://www.dawn.com/2003/12/05/ebr3.htm
Pakistan, India may sign MoU on listing

By Our Staff Reporter

LAHORE, Dec 4: Pakistan and India may sign a bilateral memorandum of understanding (MoU) to pave the way for and facilitate cross-border listing of their companies on each other’s stock exchanges.

This was stated by Securities and Exchange Commission of Pakistan chairman Dr Tariq Hasan while talking to reporters at the conclusion of a two-day theme conference of the South Asian Federation of Exchanges (SAFE) here on Thursday.

Lahore Stock Exchange (LSE) chairman Naeem A Khan was elected as new chairman of the SAFE for the next term.

The SECP chief sought to dispel the impression that there existed any hurdles in the way of signing of an MoU between the two neighbours for facilitating cross-border listing of companies.

“India is already a signatory of a multilateral International Organization of Securities Commissions (IOSCO) MoU on cross-border listing of companies. Once Pakistan signs it, we would also become part of that multilateral agreement which would remove the snags in the way of cross-border listing. However, we may sign a bilateral MoU with India before signing the multilateral MoU,” Dr Hasan said. But he did not say as to when would that bilateral MoU may be signed.

The SECP chairman brushed aside the fears that India, being a bigger economy, would dominate the Pakistani capital markets once cross-border listing was allowed.

“This is not correct. We must not be scared of such a thing. Instead, we should become part of globalization by removing our weaknesses and strengthening our regulations,” he said.

Meanwhile, the three stock exchanges of Pakistan signed an MoU each with the Chitagong Stock Exchange and Colombo Stock Exchange for sharing information and increasing cooperation. The SECP also signed an MoU with its Sri Lankan counterpart for the same purpose.

New SAFE chairman Naeem Khan told reporters that these MoUs were the first step towards the ultimate objective of facilitating cross-border listing of companies of the SAFE member countries. He said no MoU was signed with the Indians because the delegate who attended the conference did not have the blessings of his regulators. The SAFE members also issued a joint communique at the end of the conference.

ashtray · September 23, 2005, 8:40pm

Re: BSE and KSE

You dawg, you had been eyeing these for over 2 years.

Booze_Allin · September 26, 2005, 2:24am

Re: BSE and KSE

Namaste & Salaam!

I'll add one to that list - Tata Motors

And get rid of Polaris may be

Bye