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Sunday, 14 August 2011

DAILY STOCK MARKET REPORT: 15th AUGUST,2011

Stock
Karachi Stocks Up 7.18 Points:
KARACHI, Aug 15: The KSE-100 index was at 11269.22, up 7.18 points.
August 12, 2011
5 TOP SCRIPTS GAINERS  AND LOOSERS
Al-Ghazi Tractor
Rs 6.27
UniLever Pak
Rs (261.49)
Pakistan Oilfields
Rs 5.07
Nestle Pakistan
Rs (104.42)
National Refinery
Rs 5.02
Rafhan Maize
Rs (91.88)
Attock Petroleum
Rs 5.01
Wyeth Pak Limited
Rs (46.00)
Indus Motor Co
Rs 5.01
Millat Tractors
Rs (11.22)

KSE 30 – Shares Index
Previous 10,720.71, Friday’s 10,768.60, plus 47.89.
KSE 100 – Shares Index
Previous 11,264.95, Friday’s 11.262.04, minus 2.91 points.
MARKET CAPITALIZATION

Previous Rs3,001.744bn, Friday’s Rs3,000.316bn, plus Rs1.428bn..
VOLUME LEADERS
Pakgen Power 6.983m, National Bank 3.464m, Fauji Fertiliser Bin Qasim 2.818m, Nishat Power 2.607m, JS & Co 2.594m shares.
TOTAL VOLUME

53.866m shares
TOTAL
TONE: Mixed, total listed 638, actives 289, inactives 349, Plus 121, minus 90, unchanged 78

KSE down 11pc from year’s 12,682 points peak
KARACHI, Aug 13: Stocks at the Pakistan capital market have been battered this calendar year, with the KSE-100 index taking a dip of 11.2 per cent from the year’s highest level of 12,682 points.
In a note titled “Deciphering the Pakistan market”, analysts at AKD Research pointed out that the Index had slumped by 7.6 per cent in the initial two weeks of August alone.
“As such, the Pakistan market has broadly tracked the sell-off in global equity markets post the US debt downgrade by rating agency, Standard & Poor’s (S&P) and ongoing Euro zone debt concerns”, analysts commented.
Acknowledging that the potential foreign portfolio outflow was a tangible concern, one major reason being that the domestic mutual funds had limited absorption capacity, the analyst asked investors to take heart and be comforted by the knowledge that the country was relatively insulated from the financial turmoil in developed world economics.
The 2008 meltdown, which had pushed KSE also into deep red, was considered to be an exception due to non-pass through of oil prices.
It was noted that Pakistan’s macroeconomic fundamentals remained largely unaltered. Some of the indicators included improved outlook of GDP growth, a stable Rupee/ $ parity despite monetary easing and very strong corporate earnings momentum.
As a result, although Pakistan equity market valuations appeared to have lost traction with underlying fundamentals, analysts urged investors to ignore near-term bouts of volatility and formulate a longer-term investment strategy.
In his weekly report, Furqan Ayub, equity analyst at JS Global, recalled that the precarious debt situation of US took its toll on global markets as the week began with the news of US credit rating downgrade to AA plus, from AAA by S&P.
US credit rating downgrade sent shock waves all through the global financial markets with many of them seen ruthlessly trampled by the bear.
“KSE remained highly volatile throughout the week with the index declining by 113 points (one per cent) during the week,” the analyst said.
The KSE-100 index outperformed regional markets by 1.9 per cent, but the sound macro indicators (remittances and trade numbers) did not help the market completely stave off the impact of global equity downturn.
Even the encouraging corporate results failed to stimulate investor interest with foreigners offloading shares worth $11
million during the week.
In order to stabilise markets, Turkey, Spain, Belgium, France, Italy, Greece and South Korea all banned short selling.
“It was heartening to note that in spite of the uncertain environment, there was no indication that KSE was contemplating a similar move,” analyst said.
Average daily volumes at the KSE increased 36 per cent over the previous week, to 71 million shares.
Lost in global uncertainty, the investors at the KSE failed to take notice of some of the stimulating corporate results.
Key companies that announced financial figures during the week included PSO, PPL, OGDC and Engro.
PSO posted profit after tax (PAT) of Rs14.8 billion (earning per share (eps) of Rs86.17) in FY11, showing growth of 63 per cent over the earlier year. However, shareholders were disturbed by the directors’ decision to payout only Rs2 in final cash dividend. PPL and OGDC posted earnings growth of 35 per cent and 7 per cent over the earlier year, reporting eps at Rs26.31 and Rs14.77 respectively. On the other hand, Engro’s earnings remained largely flat with an eps at Rs8.60, restricted by higher financial charges. In addition to strong corporate results, impressive economic indicators also went largely unnoticed
by the market, two of which were 38.6 per cent jump in workers remittances and 1.8 per cent narrowing of trade deficit in July 2011.
Stocks turn flat in mixed trading
KARACHI, Aug 12: The stock market on Friday turned in another mixed performance as investors played on both sides of the fence but active short-covering in the oil sector averted a major decline.
The benchmark, however, failed to sustain its early run-up of 143 points after having hit the session’s high of 11,408.00 points on weekend selling and ended with the fractional fall of 2.91 points at 11,262.04. But its junior partner, KSE-30 share index, rose by 47.89 points at 10,768.60.
The weakness of OGDC, Engro Corporation, Shell Pakistan, Pakistan Petroleum and some other pivotals clipped its early gains but it has given a strong indication that by now the worst may be over.
All eyes are now focused on the next trading week as a number of leading companies, including some in the oil sector will announce their accounts amid market talk of higher payouts and that will set the futures market trend based on the earning and dividend.
The falling volume figures, however, remained the chief worry of investors and brokerage houses and until it stabilizes well above 150m shares, selective alternate bouts of buying and selling may continue to dominate trading pattern, some leading brokers said.
The other disturbing factor is that the bulk of the turnover remained confined to undervalued shares where price changes are fractional, mostly in paisa and did not add to the values of the shares traded or those who sold or purchased them, they added.
Analysts said there is no possibility of a big rally at this stage as the world financial markets are still directionless but chances of creeping recovery are there by the next week.
Plus signs again dominated the list under the lead of Al-Ghazi Tractors and Pakistan Oilfields, up by Rs6.27 and 5.07, while Unilever Pakistan and Nestle Pakistan were among the top losers, off Rs261.49 and 104.42, respectively.
Traded volume fell to 53.866m shares from the previous 59m shares but gainers again held a comfortable lead over the losers at 121 to 90, with 78 shares holding on to the last levels.
The active list was topped by Pakgen Power, after reports of announcement of higher dividend, up one rupee at Rs19.77 on 7m shares followed by National Bank, steady by 92 paisa at 46.03 on 4m shares, Fauji Fertiliser Bin Qasim, firm by 28 paisa at Rs47.19 on 3m shares, Nishat Power, up 83 paisa at 15.42 also on 3m shares, J.S. & Co, steady by three paisa at 6.06 also on 3m shares, Nishat Mills, higher by Rs2.06 at 43.32 on 3m shares and Engro Corporation, off Rs3.69 at 132.08 on 3m shares.
They were followed by Azgard Nine, steady by 13 paisa at 4.98 on 3m shares, Lotte Pakistan, firm by two paisa at 10.79 on 2m shares and Pakistan Oilfields, higher by Rs5.07 also on 2m shares.
FUTURE CONTRACTS: After last two sessions smart recovery on reports of higher earnings, Engro Corporation again came in for selling at the higher level and was marked down y Rs3.64 at 132.72 on 0.963m shares, United Bank, up 50 paisa at 58.20 but its August settlement, eased by two paisa at Rs56.88 on 0.702m and 0.700m shares, respectively.
They were followed by Pakistan Oilfields, higher by Rs4.78 at Rs39.17 on 0.681m shares and National Bank, up Rs1.01 at Rs46.32 on 0.672m shares.
DEFAULTER COMPANIES: Ravi Textiles came in for active support and rose by one paisa at Rs0.88 on 0.119m shares followed by Dewan Autos, lower 14 paisa at 1.16 on 16,102 shares, and Genertech Power, easy by five paisa at 0.41 on 7,500 shares. All others were fractionally traded amid light deals.

Mohammed Saleem Mansoori

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