DAILY STOCK 12TH OCTOBER,2011

Stock

Karachi Stocks Down 33.58 Points:
KARACHI, Oct 11: At close of trading, the KSE-100 index was at 12058.74, down 33.58 points.

October 11, 2011

TOP  5  SCRIPTS GAINERS AND LOOSERS:

National Refinery	Rs 8.32	UniLever Pak Ltd	Rs (60.51)
Pak Oilfields	Rs 7.15	Bata (Pak) Ltd	Rs (10.95)
Nestle Pakistan	Rs 6.87	Millat Tractors	Rs (2.77)
Attock Refinery	Rs 5.47	PSO	Rs (2.68)
Colgate Palmolive	Rs 4.00	ICI Pakistan	Rs (2.43)

KSE 30 – Shares Index	Previous 11,634.34, Tuesday’s 11,545.08, minus 89.26 points
KSE 100 – Shares Index	Previous 12,092.32, Tuesday’s 12,054.82, minus 37.50 points
MARKET CAPITALIZATION	Previous Rs 3,183.424bn, Tuesday’s Rs3,167.833, minus Rs15.591bn
VOLUME LEADERS	Hub Power 22.469m, Fatima Fertiliser 11.953m PTCL 9.364m, D.G. Khan Cement 8,876 Lotte Pak 8.280
TOTAL VOLUME	141.708m shares
TOTAL	TONE: easy, total listed 638, ctives 378, inctives 260, plus 104, minus 183, unchanged 91

KSE 100-share index loses 37 points

KARACHI, Oct 11: The stock market on Tuesday failed to sustain the overnight run-up as investors took profit on selected counters under the lead of some foreign stakeholders but selling was well-absorbed at the dips.
The instances of strong selective buying in a number of sectors, notably oil shares was, however, not lacking, which enabled the market to avert major decline being in an overbought position owing to persistent bullishness carried over from the pre-rate-cut buying spree.
After early rise to 12,141.09 points on active follow-up support, the benchmark fell to session’s low of 12,030.26 points but managed to finish well above the 12,000 level at 12,054.82, off 37.50 points.
The strength of some leading shares, notably Fauji Fertiliser, Engro Corporation, Arif Habib Corporation and Attock Refinery aided the market to limit fall in the index.
Floor brokers said the snap halt in the post-rate-cut rally was technical as far as the underlying sentiment was concerned. It
remained uppishly inclined thanks to presence of buying at the lower levels.“There are more than positive factors on which the market could maintain its upward drive beyond the index level of 12,000 points”, they said, and added: “The strength of the fertilizer and oil sectors aided by higher earnings owing to steep rise in urea prices may allow investors to sit on the sidelines in the coming sessions”.
Concerns on the law and order situation and heating up of the political scenario, notably in the Punjab did take its toll as a section of investors, notably short-term investors sold in a bit haste, they added.
“I don’t think that the positive impact of above market cut in discount rate is overdone”, said a leading analyst and added: “It would continue to inspire fresh local and institutional buying in the sessions to come.
Minus signs dominated the list under the lead of Unilever Pakistan and Bata Pakistan, off Rs60.51 and Rs10.95, while among the top gainers, National Refinery and Pakistan Oilfields were leading, up Rs8.32 and Rs7.15.
Traded volume fell to 141.708m shares from the previous 183m shares as losers held a strong lead over the gainers at 183 to 104, with 91 shares holding on to the last levels.
The active list was led by Hub-Power, off Re1 at Rs41.67 on 23m shares followed by Fatima Fertiliser, up 90 paisa at Rs21.26 on 12m shares, PTCL, steady by 13 paisa at Rs12.59 on 9m shares, D.G. Khan Cement, easy eight paisa at Rs23.13 on 9m
shares, Lotte Pakistan firm by six paisa at Rs12.18 on 8m shares, Fauji Fertiliser Bin Qasim, lower 48 paisa at Rs61.28 on 7m shares and Lucky Cement, off 93 paisa at Rs78.92 on also on 7m shares.
They were followed by Arif Habib Corporation, up 89 paisa at Rs33.06 on 7m shares, Engro Foods, up 32 paisa at Rs24.19 on 5m shares and Azgard Nine, lower 45 paisa at Rs4.47 on 5m shares.
FUTURE CONTRACTS: The active list was led by Fauji Fertiliser Bin Qasim, lower 31 paisa at Rs61.74 on 1.804m shares followed by Arif Habib Corporation, up Rs1.02 at Rs28.74 on 1.427m shares and Attock Refinery, higher by Rs5.52 at Rs117.53 on 0.884m shares.
They were followed by Fauji Fertiliser, higher by Rs2.04 at Rs181.62 on 0.859m shares and D.G. Khan Cement, easy 17 paisa at Rs23.27 on 0.794m shares.

SECP mulling increasing capital limit

ISLAMABAD, Oct 11: The Securities and Exchange Commission of Pakistan (SECP) is planning to increase the limit of minimum paid-up capital of stock brokers to improve the standards of financial markets, but the move would force many small brokers either to merge or leave their seats in the three stocks exchanges of the country.
The suggested is part of the Capital Market Development Plan currently being formulated by the corporate sector regulator to devise the future roadmap for promotion of stock markets.
“Currently the stock markets are dominated by few hands in country and it is imperative to introduce competition in the capital markets,” chairman SECP, Muhammad Ali, said.
Talking to media persons in his office, here on Tuesday, Mr Ali said that there were 250 to 300 brokers in three capital markets, but majority of them had a very small size in business, there was a need for stronger players who could challenge the hegemony of top players.
“As the paid-up capital is increased either the brokers will have to increase liquidity and upgrade themselves or merge among themselves to meet the new requirements,” he added.
He said that the number of brokers would decrease but they will all be strong and compete among each other not only brining new investments but also offering better products.
“Besides, the brokers have to expand their branches and network all over the country and attract small and mid level investors,” he said.
Media was informed that currently the brokers were required to have Rs2.5 million as paid-up capital as per the law formulated in early 1970s, however the new minimum limit has yet not been finalised by the SECP.
He said that the SECP had also started working on the revision of Companies Law, which is expected to be finalised by December 2012.
SECP has formed a 12-member Corporate Laws Revive Commission (CLRC) to revive the existing laws and study the corporate laws in England, Australia and India.
“However the law of England will be our role model because it is latest and the most comprehensive regulation in this regard,” he chairman SECP said.
The main target of new Companies Law will be to offer separate set of regulatory framework and filing requirements for the small, medium and large-sized companies.
“Currently Pakistan has large number of partnerships and sole proprietorships as taxes on these two forms of business are low and tax rate on companies are high, so people do not establish small and medium sized companies,” Mr Ali said.
The chairman said that SECP has asked the FBR to reduce tax on companies so that the corporate culture can be expanded.

Mohammed Saleem Mansoori