DAILY STOCK MARKET UPDATE: 15.09.2011

Stock

Karachi Stocks Up 44.72 Points:
KARACHI, Sept 14: The KSE-100 index was at 11309.15, up 44.72 points.

September 13, 2011

TOP  5  SCRIPTS GAINERS AND LOOSERS:

Mari Gas	Rs 4.90	Nestle Pakistan	Rs (45.71)
National Refinery	Rs 4.86	Island Textile	Rs (10.67)
Murree Brewery	Rs 4.59	Attock Refinery	Rs (5.79)
Attock Petroleum	Rs 4.40	Ferozsons (Lab)	Rs (2.77)
Pakistan Oilfields	Rs 2.29	PECO	Rs (2.24)

KSE 30 – Shares Index	Previous 10,711.55, Tuesday’s 10,795.47, plus 83.92 points.
KSE 100 – Shares Index	Previous 11,180.64, Tuesday’s 11,264.43, plus 83.79 points.
MARKET CAPITALIZATION	Previous Rs.2,963.553bn, Tuesday’s 2,984.789bn, plus 21.236bn.
VOLUME LEADERS	National Bank 5.855m, Lotte Pakistan 4.177m, Fauji Fertiliser Bin Qasim 1.923m, Bank AlFalah 1.162m, Arif Habib Corpn 1.052m shares.
TOTAL VOLUME	26.127m shares
TOTAL	TONE:steady,total listed 637,actives 285,inactives 352,plus 117,minus 73,unchanged 95

Stocks recover 83 points on short-covering

KARACHI, Sept 13: The share market on Tuesday Shrugged off the overnight hesitancy as investors covered positions at the lower levels aided partly by recovery in the global bourses and partly to short-covering in the oil sector.
The KSE 100-share index recovered a good part of the previous loss and was marked up by 83.79 points at 11,264.43, reflecting the strength of some leading base shares under the lead of National Bank, Fauji Fertiliser, Engro Corporation and blue chips in the oil sector.
The attendance was, however, terribly thin owing to heavy rains since last evening, transport problems and forecast of fresh rain, floor brokers said.
Although plus signs forced a strong lead over the minus ones, the volume figure showed a sharp contraction, reflecting the absence of some leading investors owing to rains, they said.
However, the market indicated in more than one ways that lean periods are now far behind as some of the leading investors and fund managers have decided to go by the market fundamentals rather than the political under current, they added.
The market was back on the rails in sympathy with the world bourses as predicted by a leading stock analyst Faisal A. Rajabali as it basic fundamentals continued to be bullish thanks to steady inflow of investment buying on certain counters.
“News from the corporate front are not that bad”, said a leading analyst Ahsan Mehanti.” The other investor worry, the city violence, is also on the decline because of on-going operation.
He said the market`s recovery the very next day after having suffered a massive fall of well over 100 points reflects its inherent strength and investors go by that.
But what worry investors most is inconsistency in foreign buying, another prominent analyst Samar Iqbal said and added: “Their terrible tilt toward the behaviour of global markets appears to be the major irritant”.
Prominent gainers were led by Mari Gas and National Refinery, up Rs4.90 and 4.86, while losers included Nestle Pakistan and Island Textiles, off Rs45.71 and 10.67.Traded volume fell to 26.127m shares from the previous 45m shares but gainers held a strong lead over the losers at 117 to 73, with 95 shares holding on to the last levels.
National Bank led the list of actives, up Rs2.05 at Rs44.80 on 6m shares followed by Lotte Pakistan, steady by 28 paisa at 13.28 on 4m shares, Fauji Fertiliser Bin Qasim, easy by 12 paisa at Rs49.67 on 2m shares, Bank AlFalah, firm by 28 paisa at 10.10 on 1.162m shares, Arif Habib Corp, easy by 25 paisa at 26.32 on 1.052m shares, Engro Corporation, higher by Rs2.42 at 132.77 on 0.958m shares, and Sui Southern, higher by 82 paisa at 25.08 on 0.633m shares.
They were followed by Fatima Fertiliser, up 20 paisa at 17.02 on 0.510m shares, Azgard Nine, steady 18 paisa at 5.27 on 0.495m shares and Hub Power, lower 20 paisa at 39.73 on 0.478m shares.
FUTURE CONTRACTS:
National Bank also led the list of actives on this counter and recovered Rs2.05 at 44.92 on a large volume of 1.177m shares followed by Engro Corporation, higher by Rs2.41 at 131.96 on 0.342m shares and Azgard Nine, steady 14 paisa at 6.30 on 0.241m shares.
Lotte Pakistan followed them, up 30 paisa at 13.31 on 0.206m shares and Fauji Fertiliser Bin Qasim, easy by ten paisa at Rs50 on 0.183m shares.

Attock Group companies show phenomenal earnings growth

KARACHI, Sept 13: Financial figures reaching the stock exchange from Damascus (Syria) where the Attock Group held the meetings of the board of directors for companies in its fold, showed phenomenal earnings growth for majority of companies.
But the shareholders thought that the board had decided to pay lower than expected dividends and many of the company stocks lost value during trading on Monday.
The share in Pakistan Oilfields was down 4.36 per cent; Attock Refinery hit the lower circuit of 5 per cent loss in value and National Refinery stock closed 4 per cent down from its overnight value.
Attock Petroleum was, however, an exception.
Analyst Ali Ahmed Tiwana at Elixir Research noted: “Robust payout for APL shareholders was major excitement as the board declared dividend at Rs30 per share, taking full year dividend to Rs41.50 per share. Payout ratio jumped to 67 per cent in financial year 2011, from 48 per cent the year before.
Topline Securities` analyst Nauman Khan commented on the financial figures of group companies.
Pakistan Oilfields Ltd (POL): The company announced earning per share (eps) at Rs45.72, showing an increase of 45 per cent over EPS of Rs31.44 in the corresponding period last year.
The corporate results were accompanied by final cash payout of Rs25 per share, which took the full year payout to Rs35 per share.
The increase was primarily on account of surge in oil prices by 25 per cent year-on-year (YoY) to average $93 per barrel in FY11. Moreover, favourable volumetric variance on account of increase in oil and gas production from Tal Block contributed to the earning growth.
In addition, 33 per cent decline in exploration cost to Rs1.1billion; 31 per cent increase in company`s other income due to higher payout from associated companies and high interest rate environment, also supported the growth in the bottom line.Attock Refinery Ltd. (ATRL): The company announced eps at Rs25.63 for financial year 2011 as against eps of Rs1.48 the previous year, which represented an incredible 17.3 times higher earnings for the latest year.
In addition, after a break of three years, the company announced a cash payout of Rs2 per share. The growth primarily emanated from improved favourable pricing scenario that pulled company`s core refinery operations into profit.
All of that enabled the company to jump into a gross profit of Rs1.6 billion, from gross loss of Rs509 million last year. Support to the bottom line also came from improved other operating income and dividend income, which grew by 59 per cent and 77 per cent to end at Rs1.6 billion and Rs1.1 billion, respectively, in FY11.
National Refinery Ltd. (NRL) announced its FY11 eps Rs82.14, compared to eps Rs41.08 last year, up by a massive 99 per cent and announced a final cash payout of Rs25 per share.
The improved profitability was primarily on account of splendid performance of its lube oil business, complemented by turnaround in fuel refining business.
The company also enjoyed strong cash position, which enabled it to show a massive growth of 95 per cent in “other income”, which stood at Rs2.5 billion in FY11 compared to Rs1.3 billion the earlier year.
Attock Petroleum Ltd. (APL): The company announced its FY11 eps at Rs61.58 compared to eps at Rs52 last year, showing an increase of 11 per cent.
The growth in the earnings primarily emerged from improved volumetric sales by 21 per cent YoY and inventory gains arising from soaring oil prices during the year.
Overall company`s gross profit rose by 25 per cent to Rs4.7 billion in FY11 from Rs3.7 billion the previous year.
However, gross margin declined to 4.3 per cent in the latest year on account of fixation of oil marketing companies` margin on regulated product by the government.
The bottom line was also ably supported by massive increase of 51 per cent and 120 per cent, respectively, in the company`s “other operating income” and dividend income from its associated companies. Income from bank deposit declined by 2 per cent to Rs962.8 million.

JSCL sells stake in NMB

KARACHI, Sept 13: Jahangir Siddiqui and Company Limited (JSCL) has entered into a Share Purchase Agreement (SPA) with a Group of Investors, referred to as “the Acquirers” for sale of 21.245 million shares of face value of Rs10 each of Network Microfinance Bank Limited (NMBL).

The shares on the table constitute 70.82 per cent of the total paid-up capital of NMBL, it was learnt on Monday.
The decision to dispose of entire investment in NMBL a subsidiary of JSCL was earlier made at the meeting of the board of directors of JSCL on May 19. “The company has received Expression of Interest (EoIs) from potential investors which will be considered subject to the necessary legal formalities and consents by the regulatory bodies where required,” the Board had said on May 19.
JSCL stated on Monday that an Escrow Agreement dated Sept 11, 2011 was also signed by the JSCL and the “Acquirers” with a local bank in terms of which the “Acquirers” had separately deposited total sale consideration with the said bank to be released to the company upon transfer of the shares after obtaining all regulatory approvals and fulfilment of all legal formalities by the Acquirers including under the provisions of the Listing Companies (substantial Acquisition of Voting shares and Take over) Regulations, 2008 and the Competition Act, 2010.
The market noted that the purchasing party was merely referred to as the “Acquirers” and the price per share at which the JSCL holding in Network Microfinance Bank would change hands was not disclosed on Monday.
“All of that is within the legal norms,” commented an expert in takeover and acquisitions rules. He thought that more details of the deal would perhaps come to light after the regulatory approvals were obtained and the transaction was completed.

Mohammed Saleem Mansoori