| KSE shed 456 points in last week
KARACHI: Karachi Stock Market during the outgoing week continued its downward journey for the second consecutive trading week as the KSE-100 index shed another massive 456 pts or 2.4 percent.
The downward trend is due to deteriorating law and order situation in the country and quarterly report issued by the State Bank of Pakistan (SBP) regarding poor status of the economy specially in terms of trade deficits, inflation and export shortfalls shattering confidence of foreign investors.
Following poor law and order situation in the country, especially during the two previous weeks, the KSE-100 index has already suffered massive tumbling of 968 pts, which has emerged as a shock for majority of small investors following six weeks of incessant gains. Farhan Mahmood, analyst at J.S.
LSE and Borsa Italiana equities trades jump 55%
The London Stock Exchange and its new subsidiary Borsa Italiana have reported a 55 per cent jump in the average number of daily equities trades in 2007. In total the two exchanges handled 212 million electronic equity trades with a total value of £3.2 trillion during last year. The figures are a reflection of surging volumes on all world exchanges, driven by the turbulent market conditions and the growing trend towards so-called "black box" trading, where computers trade automatically. In London, the average number of daily trades jumped by 75 per cent. The LSE has reported, month by month throughout 2007, a series of exponential rises in volumes. This and potential takeover activity has supported a sharp rise in the share price over the year. But LSE shares, which almost topped £20 in recent weeks, have since been falling, and they ebbed another 5p to £18.42 this morning.
Top Rocket Stocks for Week of Jan. 28
Up 20.9% on the week as a pure snapback play. IntercontinentalExchange (ICE - Cramer's Take - Stockpickr): This pure snapback play soared as much as 20% and ended the week up 12.8%. CSX (CSX - Cramer's Take - Stockpickr): Up as much as 17.3% and ending the week up 11.7% after reporting a solid earnings beat. Fourth-quarter net income rose to $491 million, or $1.86 a share, compared with analyst estimates of a per-share profit of $1.77. Jacobs Engineering (JEC - Cramer's Take - Stockpickr): Up 14.4% on the week after beating fiscal first-quarter earnings estimates and raising 2008 guidance. Dow Chemical (DOW - Cramer's Take - Stockpickr): Up 9.9% on the week. CEO Andrew Liveris said that he did not see a global recession in 2008. Cabot (CBT - Cramer's Take - Stockpickr): Up 9.6% for the week despite a drop in fiscal first-quarter earnings.
Jeremy Warner's Outlook: Bear market that dares not speak its name
Nor does it seem likely that banking profits will bounce back next year. The losses incurred in the credit crunch have in themselves substantially damaged the capital bankers have to set against their lending for solvency purposes. What's more, some banks are being forced to take business previously placed off-balance sheet through Structured Investment Vehicles (SIVs) back on to their books, further eating into the amount of capital they have available for new business. HSBC has already absorbed some $43bn of such assets, while earlier this week Citigroup bit the bullet and brought $49bn of SIV assets back on to its books. In some respects, it shows how impressively well capitalised these banks are that they are able to do this without greater recourse to the markets for fresh capital.
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