KARACHI, March 4: The much-awaited Margin Trading System (MTS) will be implemented by the National Clearing Company of Pakistan Limited (NCCPL) from Monday, March 14.

The announcement of the date of implementation set at rest the market fears of a possible delay by several weeks between the 'cutting of ribbon' and the actual launch of the leverage product.

Federal Minister for Finance Dr Abdul Hafeez Shaikh is scheduled to address the ceremony of MFS/MTS/Securities Lending and Borrowing System, at the KSE on Saturday.

NCCPL on Friday released a bunch of circulars, one stating that it was registered as an "Authorised Intermediary" to implement leveraged market products (Margin Trading System, Margin Financing system and Securities Lending and Borrowing) by the SECP in accordance with the Rule 3 of the Securities (Leveraged Markets and Pledging) Rules, 2011.

And more importantly, the Clearing Company announced the list of 27 Securities which would be 'eligible' for MTS. Those included the following: Arif Habib Corporation; Adamjee Insurance; Askari Bank; Azgard Nine; Attock Refinery; Bank AlFalah; D.G.Khan Cement; Engro Corporation; Fauji Fertilizer Bin Qasim; Fauji Fertilizer Company; Hub Power Company; Kot Addu Power Company; Lotte Pakistan PTA; Lucky Cement; MCB Bank; National Bank of Pakistan; Nishat (Chunian); Netsol Technologies; Nishat Mills; OGDC; Pakistan Reinsurance Company; Pakistan Oilfields; Pakistan Petroleum; Pakistan State Oil; Pakistan Telecommunication Company; Sui Southern Gas Company and United Bank Limited.

Great expectations on the launch of MTS, combined with other reasons, mainly the fear of the beginning of the end of foreign inflows in the KSE put to rest, helped market recover 6.9 per cent of the values lost the previous week. Foreigners were net buyers of $2.9m worth stock in the week ended on Friday, which represented sharp pull back from the previous week's frightening portfolio outflow of $5.4 million.

Analysts at various stock brokerage houses gathered that volumes were also up at the KSE by 49.5 per cent to 146.5 million shares in the week, from 98 million shares trading the past week.

With the current reporting season almost coming to an end, National Bank of Pakistan (NBP) during the week announced higher than expected cash payout of Rs7.50 per share and a stock dividend of 25 per cent. The bank's payout and earnings of Rs17.6 billion, representing earnings per share (eps) at Rs 13.05 for 2010 were warmly greeted by the market which saw the NBP stock price rise by 20 per cent in the week.