KKR lists on Euronext: NYSE is next

Kohl berg Kravis Roberts & Co KKR.UL is on the verge of catching up with private equity arch-rival Blackstone in having a share listing, more than two years after initially seeking to go public.

KKR on Thursday closed a long-awaited deal to buy its Amsterdam-quoted fund, becoming a Euronext-listed company and completing the first step toward an expected move to the New York Stock Exchange.

New York-based KKR, co-founded by "buyout king" Henry Kravis, has been planning for two years to follow rival Blackstone Group LP (BX.N) in becoming a publicly traded company, but it has been held up by market turmoil.

KKR's complicated deal to become a publicly traded entity involves combining with KKR Private Equity Investors LP (KKR.AS), a Guernsey limited partnership traded on Euronext and known as KPE.

A move to a New York listing, which would put KKR on the same playing field as Blackstone, will likely come next spring, a source familiar with the situation previously told Reuters.

Blackstone has been able to use its shares as currency in a series of deals expanding the investment banking and hedge fund side of its business. Many analysts expect KKR's listing will give it the flexibility for similar transactions.

KPE on Thursday was renamed KKR & Co (Guernsey). It owns 30 percent of the combined KKR-KPE.

LONG DELAYED PROCESS

From Friday, the stock symbol of the combined KKR-KPE will be KKR. The stock is currently listed on some systems as KPE. The shares were up 1.5 percent at $9.49 in afternoon trade in Amsterdam.

"Our mission is to create attractive returns for our investors," co-founders Henry Kravis and George Roberts said in a statement. "This transaction is a milestone that will enhance this mission and provide capital to grow our firm."

KKR is not issuing new capital under the deal, and KKR executives are not selling any shares.

KKR originally announced plans to list on the NYSE via a traditional initial public offering in July 2007, a month after Blackstone went public and just before the markets started to tumble.

KKR later proposed a more complex method of going public, by combining with KPE. In June it formally withdrew the traditional IPO plan but kept the door open for such a move in the future.

It said in recent filings that after KKR and KPE combined, either KKR or KPE would have the right to require the other to use "reasonable best efforts" to list the combined business in the United States.

KKR appointed its first head of investor relations on Tuesday as it readied itself to become publicly listed.

Analyst Michael Kim at Sandler O'Neill said earlier this week that the completion of the KKR-KPE deal would likely be a non-event for the stock, as the market has been aware of the deal's terms for some time.

"Since the time that they announced the revised terms and indicated a high likelihood that the reverse merger would get approved, I think the stock (KPE) has essentially traded as a proxy for the overall KKR," said Kim.

KPE shares have risen more than 50 percent since the revised terms of the deal were announced on July 20.

Blackstone shares are currently trading at around half their IPO price of $31.

KKR has investments in numerous household names, including Toys R Us Inc TOY.UL, mattress maker Sealy Corp (ZZ.N) and asset manager Legg Mason Inc (LM.N).

Islamabad Stock Exchange

News:

Al-Zamin entities being merged to form investment bank

KARACHI (October 16, 2009): Al-Zamin Leasing Modaraba and Al-Zamin Leasing Corporation are merging into Invest Capital Investment (ICI) Bank Limited to create a larger entity. According to a press release issued here on Thursday, the shareholders of all the three entities unanimously approved the scheme of arrangement and the merger plans last week.

NIT to educate investors on capital market investment

LAHORE (October 16, 2009): National Investment Trust (NIT) will provide all out support for enhancing confidence level among investors, as it is key to stabilise and improve the Capital Market in the country and the CDC road show in Lahore is a step in the same direction. This was stated Chairman, (NIT), Tariq Iqbal Khan, here, on Thursday.

THE RUPEE: mixed trend

KARACHI (October 16 2009): Rates moved both ways in the currency market on Thursday as supply of dollar was tight during the trading session, dealers said. In the interbank market, the rupee rose by 5 paisa against the dollar for buying and selling at 83.20 and 83.25, they said. In the fourth session of Asian trade, the dollar fell to a 14-month low against a basket of currencies as comments by the head of Australia´s central bank encouraged investors to buy higher-yielding Australian dollar, which helped other currencies gain. OPEN MARKET RATES: The rupee fell sharply, losing 15 paisa against dollar for buying and selling at 83.25 and 83.35, dealers said. The rupee came down versus Euro, losing 85 paisa for buying and selling at Rs 123.95 and Rs 124.45, they said.
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Buying Rs 83.20
Selling Rs.83.25
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Index rises despite attacks

KARACHI (October 16, 2009): Positive trend continued at the Karachi share market on Thursday mainly due to foreign investors´ support and the KSE-100 index gained another 41.13 points to close at 9,845.74 points level. The foreign investors´ interest continued despite terrorist attacks in different cities of the country and a fresh inflow of 5.8 million dollars of foreign portfolio investment was recorded at the local equity market on Thursday.

Mixed sentiments prevail on LSE

LAHORE (October 16, 2009): Mixed sentiments prevailed on the Lahore Stock Exchange (LSE) on Thursday where equities ended in red zone amid reduced transaction volume on account of terrorist attacks on different places in the provincial metropolis. The LSE-25 index moved up by 21.28 points to close at 3026.51 against 3005.23 of Wednesday.

Bulls strengthen position at ISE

ISLAMABAD (October 16, 2009): Bulls strengthened their position at the Islamabad Stock Exchange (ISE) where equities showed plus signs under the lead of hot favourite with increase in the index. ISE Ten Index was plus by 37.69 points, as the Index moved from 2,293.21 to 2,330.90 points.

BRIndex30 down by 6.72 points

KARACHI (October 16, 2009): On Thursday, BRIndex30 opened at 8,508.28 and closed at 8,501.56 with a net negative change of -6.72 points and percentage change of -0.08. It experienced intra-day high of 8,615.54 and intra-day low of 8,466.40. The volume amounted to 157,499,478, which was 73.44 percent of the total market and 86.70 percent of KSE-100 index. The volume of KSE All Share and KSE-100 were 214,452,848 and 181,656,320 respectively.

CDC´s road show on Capital Market Investment on October 17

KARACHI (October 16, 2009): The Central Depository Company of Pakistan Limited (CDC), in collaboration with National Investment Trust (NIT), is organising an investment and capital market ´road show´ on October 17, in Lahore. According to a press release issued here on Thursday, the CDC launched a series of Investment road show in 2005 with a vision for wide scale development of the Pakistan Capital Market and to educate investors throughout Pakistan and abroad.

Forex Trading: The Fear Factor

Market knowledge and ability to understand analysis will only get you so far in forex trading, but without the nerve to actively compete risking your own money in the process you can never become a successful trader.

Wagering huge volumes of money in a market as susceptible to change is liable to cause a whole range of opposing emotions; fear, excitement and anxiety just to name a few. Battling against your emotions in order to complete a successful deal is one of the major hurdles, which must be overcome if you are to become a trader able to close huge deals and earn vast sums of money. If you can overcome or even use these emotions to make trades on the Forex then a successful career may be beckoning, but failure to do so will almost certainly cost you a substantial amount of money and end any lingering desires to progress in the busy world of exchange rate trading.

Initiating and closing a trade at the right times are the backbone of becoming a successful Forex trader. If a person cannot execute these deals at the right times, the psychological and financial damage can be crippling. Missing a huge trend or sitting too long on a good price, can be a demoralising experience, but one that many will encounter during a career in Forex trading.

Entering at the right time is just one thing that must be done correctly, but if you are unable to leave at the right time or hold your nerve during the course of the trade, the implications are potentially severe. For example accepting a small loss just before the market rises can lead to a horrendous huge profit/loss ratio margin. Similarly sitting on a currency price that is plummeting for too long could be financially crippling. Understanding the Forex market and having faith in your ability to judge a trend will pay dividends if you hold your nerve, backing out at the wrong time can prove to be a catastrophic misnomer.

The fear generated by investing your own personal money is the main thing that must be overcome. It is the culprit in so many failure stories, people who just couldn't overcome their anxiety investing unwisely, pulling out at the wrong time, missing a rise completely, all result in failure and are caused by fear. Accepting this fear, and using it to your potential will make you a stronger trader, able to trade freely and enjoy the thrill of the exchange. Fighting it will get you nowhere, understanding and overcoming it are the best remedies to this baseless emotion.

Trading strategies will help you ride out the rough times and capitalize on the good ones. Sometimes just taking a step back and accepting a few losses will give you the energy and the knowledge to attack the Forex with renewed vigour, and make some serious profits. Accepting that sometimes you will lose out, you need to be able to take the hits and roll with a punch, there are no guarantees in the trading market, so being able to move on and start again is a skill that is paramount to generating success.

Analysis and charts can only get you so far. You must first master these things, and be able to correctly interpret the figures that are represented in order to spot the trends and make your move. But this all means nothing if you don't have the courage of your convictions. If you are too afraid to buy and not sure when to sell then a glittering career in market trading is likely to elude you. 'The trend is your friend' but it means nothing if you firstly can't spot it and secondly don't have the courage to back it. Knowledge, strategies and overcoming fear may well be the 3 best ways to become to unlock the door to becoming a successful trader. Without all 3 you will more often than not become unstuck, so prepare, practice and evaluate everything before taking the plunge in the complicated world of Forex trading.

by Michael J Campbell

Money Management Tips For Trading On The Forex

What is Money Management: describes strategies or methods a player uses to avoid losing their bankroll.

Money management in the foreign exchange currency market requires educating yourself in a variety of financial areas. First, a definition of the foreign exchange currency or forex market is called for. The forex market is simply the exchange of the currency of one country for the currency of another. The relative values of various currencies in the world change on a regular basis. Factors such as the stability of the economy of a country, the gross national product, the gross domestic product, inflation, interest rates, and such obvious factors as domestic security and foreign relations come into play. For instance, if a country has an unstable government, is expecting a military takeover, or is about to become involved in a war, then the country's currency may go down in relative value compared to the currency of other countries.

The Forex, or foreign currency exchange, is all about money. Money from all over the world is bought, sold and traded. On the Forex, anyone can buy and sell currency and with possibly come out ahead in the end. When dealing with the foreign currency exchange, it is possible to buy the currency of one country, sell it and make a profit. For example, a broker might buy a Japanese yen when the yen to dollar ratio increases, then sell the yens and buy back American dollars for a profit.

There are five major forex exchange markets in the world, New York, London, Frankfurt, Paris, Tokyo and Zurich. Forex trading occurs around the clock in various markets, Asian, European, and American. With different time zones, when Asian trading stops, European trading opens, and conversely when European trading stops, American trading opens, and when American trading stops, then it is time for Asian trading to begin again.

Most of the trading in the world occurs in the forex markets; smaller markets for trade in individual countries. Simply put forex trading is the simultaneous buying of one currency and selling of another. Over $1.4 trillion dollars, US of forex trading occurs daily and sometimes fortunes are made or lost in this market. The billionaire George Soros has made most of his money in forex trading. Successfully managing your money in forex trading requires an understanding of the bid/ask spread.

Simply put the bid ask spread is the difference between the price at which something is offered for sale and the price that it is actually purchased for. For instance, if the ask price is 100 dollars, and the bid is 102 dollars then the difference is two dollars, the spread. Many forex traders trade on margin. Trading on margin is buying and selling assets that are worth more than the money in your account. Since currency exchange rates on any given day are usually less than two percent, forex trading is done with a small margin. To use an example, with a one percent margin a trader can trade up to $250,000 even if he only has $5,000 in his account. This means the trade has leverage of 50 to one. This amount of leverage allows a trader to make good profits very quickly. Of course, with the chance of high profits also comes high risk.

Like many other speculative investments, a key part of money management for the forex trader is only using money that can be put at risk. It is wise to set aside a portion of your net worth and make that the only money you use in forex trading. While the chances of good profits are there, if you should have a problem and get wiped out, you'll only have a limited amount of money placed at risk. Also remember that the market is n constant motion. There are always trading opportunities. If a currency is becoming stronger or weaker in relation to other currencies there is always a chance for profit. For instance, if you believe that the Euro is gong to become weak compared to the US dollar then selling Euros is a good bet. If you believe that the dollar is going to become weaker than the yen, or the pound sterling, then selling dollars is wise. Staying current on the news and current events in the countries whose currency you hold is a smart move. Many people reach points where they can predict currency changes based on political or economic news in a given country. Remember though that forex trading is speculation, so be careful when managing your funds and only invest what you can afford to risk.

Please always make sure you check with the pros when dealing in this market unless you are doing this as a hobby and don't have a lot at stake in it. There are a lot of big boys playing here and they won't lose much sleep if you and thousands others lose their shirts...

by David Mclauchlan

The Sneaky Way To Managing Losses In Your Forex Trading

One of the cardinal rules of Forex trading is to keep your losses small. With small Forex trading losses, you can outlast those times the market moves against you, and be well positioned for when the trend turns around. The proven method to keeping your losses small is to set your maximum loss before you even open a Forex trading position. The maximum loss is the greatest amount of capital that you are comfortable losing on any one trade. With your maximum loss set as a small percentage of your Forex trading float, a string of losses won`t stop you from trading. Unlike the 95% of Forex traders out there who lose money because they haven`t applied good money management rules to their Forex trading system, you will be far down the road to success with this money management rule.

What happens if you don`t set a maximum loss? Let`s look at an example. If I had a Forex trading float of $1000, and I began trading with $100 a trade, it would be reasonable to experience three losses in a row. This would reduce my Forex trading capital to $700. What do you think those 95% of traders say at this time? They would reason, "Well, I`ve already had three losses in a row. So I`m really due for a win now."

They would decide they`re going to bet $300 on the next trade because they think they have a higher chance of winning.

If that trader did bet $300 dollars on the next trade because they thought they were going to win, their capital could be reduced to $400 dollars. Their chances of making money now are very slim. They would need to make 150% on their next trade just to break even. If they had set their maximum loss, and stuck to that decision, they would not be in this position.

Here`s a perfect illustration why most people lose money in the Forex trading market. Let`s start out with another $1,000 float, and begin our Forex trading with $250. After only three losses in a row, we`ve lost $750, and our capital has been reduced to $250. Effectively, we must make 300% return on the next trade and that will allow us to break even.

In both of these cases, the reason for failure was because the trader risked too much, and didn`t apply good money management. Remember, the goal here is to keep our losses as small as possible while also making sure that we open a large enough position to capitalize on profits. With your money management rules in place, in your Forex trading system, you will always be able to do this.

by David Jenyns

Trading Currency Through Online Forex Brokers

Access to foreign exchange (forex), the most extensive market on the planet, is generally through an intermediary known as a forex broker. Similar to a stock broker, these agents can also provide advice on forex trading strategies. This advice to clients often extends to technical analysis and research approaches designed to improve client forex trading performance.

Financial institutions are generally the most influential in the forex market through high-volume, large-value forex currency transactions. Historically, banks enjoyed monopolistic access to the forex markets, but through the Internet, any forex speculator can also enjoy 24 hour access to the market via a forex broker.

Secure web connections today allow many forex traders to work from home, where ready access to news and other technical advice informs decisions on what forex positions to take. Similar moves are being made by stock brokers, who are also moving out of banks and other traditional institutions.

Your needs in the market will influence your choice of forex broker. Online forex brokerage firms, known as houses, provide those new to the forex market with detailed research, advice and simulators to learn how to use their forex trading tools. The experienced online forex trader is catered to by other broking houses, with in-depth advice, but less focus on forex trading instruction based on the assumption that you are familiar with the forex market. To make an informed choice, it is advisable to trial several differing online forex broking houses and their trading tools to find the best fit for your needs.

by Jay Moncliff

Forex Trading

So what is is Forex trading you may ask? Forex is the exchange you can buy and sell currencies. For example, you might buy British pounds (by exchanging them to the dollars you had), then, after pounds / dollar ratio goes up, you sell pounds and buy dollars again. At the end of this operation you are going to have more dollars, then you had at the beginning.
The Forex market has much higher liquidity, then the stock market, as much more money is being exchanged. Forex is spread between banks all over the planet and as a result it means 24 hour trading.
Unlike stocks, Forex trades are performed with high leverage, usually it is 100. It means that by investing $1000 you can control $100,000, and increase potential profits accordingly. Some brokers provide also so called mini-Forex, where the size of minimum deposit equals $100. It makes possible for individuals to enter this market easily.
The name convention. In Forex, the name of a "symbol" is composed of two parts — one for first currency, and another for the second currency. For example, the symbol usdjpy stands for US dollars (usd) to Japanese yen (jpy).
As with stocks, you can apply tools of the technical analysis to Forex charts. Trader's indexes can be optimized for Forex "symbols", allowing you to find winning strategy.
Example Forex transaction
Assume you have a trading account of $25,000 and you are trading with a 1% margin requirement. The current quote for EUR/USD is 1.3225/28 and you place a market order to buy 1 lot of 100,000 Euros at 1.3228, expecting the euro to rise against the dollar. At the same time you place a stop-loss order at 1.3178 representing a maximum loss of 2% of your account equity if the trade goes against you, 50 pips below your order price, and a limit order at 1.3378, 150 pips above your order price. For this trade, you are risking 50 pips to gain 150 pips, giving you a risk/reward ratio of 1 part risk to 3 parts reward. This means that you only need to be right one third of the time to remain profitable.
The notional value of this trade is $132,280 (100,000 * 1.3228). Your required margin deposit is 1% of the total, which is equal to $1322.80 ($132,280 * 0.01).
As you expected, the Euro strengthens against the dollar and your limit order is reached at 1.3378. The position is closed. Your total profit for this trade is $1500, each pip being worth $10.
by Richard Goldie