Conventional Insurance Companies Can Now Launch Takaful Window
SECP has allowed both general and life insurance companies launch Takaful window. The conventional companies could begin to underwrite Takaful products after attaining authorisation as “Window Takaful Operator” from the SECP under the Takaful Rules 2012.
Privatization of UBL: Book Building Process
Book building process for UBL was started on June 11, 2014. It is expected that local institutional and foregin investors will take key interest in the process, though the price in the book building seems to be at discount to the prevailing market price. This refers to the classic 'equity under-pricing' problem. The size of the issue (241.9 millions shares) is huge, and is expected to increase supply substantially.
Pakistan Weight Increases from 3.88 to 7.02% in MSCI Frontier Market Index
The additional weight improved the image of the Exchange which helped it in attracting net foreign portfolio investment of US$70mn during the month.
Cement Sector Witnesses Growth in May
The cement industry reported a healthy growth of 10% in the month of May, 2014, primarily because of rise in demand for cement from the public sector as the financial years comes to the end. The industry expects additional demand in the coming year as the government has increased the budgetary allocation for PSDP by 24%.