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Tuesday, 25 October 2011

DAILY STOCK MARKET UPDATE: 25.10.2011



Stock

Karachi Stocks Up 139.61 Points:
KARACHI, Oct 21: The KSE-100 index was at 11664.86, up 139.61 points.

October 21, 2011

TOP  5  SCRIPTS GAINERS AND LOOSERS:
Indus Dyeing
Rs 5.86
UniLever Pakistan
Rs (76.48)
Fazal Cloth
Rs 4.51
Bata Pakistan
Rs (25.72)
Shahtaj Sugar
Rs 2.36
National Refinery
Rs (17.95)
PITC
Rs 2.23
Attock Petroleum
Rs (12.13)
Pangrio Sugar
Rs 2.08
Shell Pakistan
Rs (10.89)

KSE 30 – Shares Index
Previous 11,125.61, Friday’s 10,901.99, minus 223.62 points.
KSE 100 – Shares Index
Previous 11,685.15, Friday’s 11.525.25, minus 159.90 points.
MARKET CAPITALIZATION
Previous Rs.3,064.709bn, Friday’s 3,018.870bn, minus 45.839bn.
VOLUME LEADERS
Fatima Fertiliser 21.175m, Lotte Pakistan 7.151m, Fauji Fertiliser Bin Qasim 5.229m, Arif Habib Corpn 4.725m, Engro Corpn.4.486m shares..
TOTAL VOLUME
82.123m shares
TOTAL
TONE:bearish,total listed 638,actives 332,inactives ,plus 69,minus 170,unchanged 93


 

Bears prowl the market during outgoing week
KARACHI: The bears prowled the Karachi stock market for all of the past week, knocking off values from most of the investors’ favoured stocks.
The KSE-100 share index plunged by a massive 463 points and settled at 11,525 points, representing 3.86 per cent loss in the five trading sessions, Monday through Friday.
Market capitalisation declined 3.61 per cent to $26.25 billion from end of the earlier week’s close at $34.94 billion.
Average daily turnover fell 31.27 per cent to 86.11 million shares, from 125.94 million shares a week ago.
The volume in the latest week happened to be lower than the 12-month average of 94.81 million shares.
‘Bad news’ was in ample supply. Yet it was the ‘uncertainty’ that kept investors away.
Analysts at several brokerage houses said that investors were not buoyed in spite of some solid corporate results.
Several external issues were thought to sit on investors’ minds. On the political front, the outcome of US Secretary of State,
Hilary Clinton’s visit to the country on Oct 20 was being closely watched to assess whether the relationship had improved or soured further.
Other than that, investors fret over the prevailing gas shortage for fertiliser sector, which was expected to get worse in winter.
Some market participants suspected that interested quarters may have seized the opportunity to make profit following the Sindh High Court orders to SNGPL for supply of the contracted 100mmcfd gas to Engro’s new plant.
A trader said they weaved an interesting tale around it: If gas supply to Engro is restored, the company would cut back on market price of urea by Rs40 per bag and FFC and FFBL would have no option but to follow suit.
The fertiliser sector earnings would be badly hit. The two scrips on the sector that were rising to the limit for many days and helping index to soar, fell on the floor with a thud. Hence, the sector came down by 5.1 per cent during the week, led by Engro down 13.7 per cent and FFC down by 5.4pc.
Across the board selling was witnessed on the second day of trading after a heavy foreign outflow of $60 million as Xenel, the Saudi based co-sponsor of Hubco quit after selling its entire stake of 12 per cent. Aggregate net foreign outflow during the
week, thus amounted to $67million compared to an outflow of $2.9million the earlier week.

Naveed Tehsin, analyst at JS Global calculated that the net foreign investment for first quarter FY12 clocked in at $236million, down 49 per cent, year-on-year. The analyst observed that the continuing global crisis and stern messages from US Secretary of State, Hilary Clinton overshadowed the impressive corporate results.
Pakistan Oilfields had posted an impressive growth of 55 per cent in profit and Attock Refinery earnings surged by 53 per cent, year-on-year.
Macro releases were largely disappointing. Current account deficit widened to $908 million in Sept, up 4.5 times, the earlier month. Moreover, textile exports during the month were recorded at $982 million, down 10 per cent month-on-month.
Going forward, investor would watch out for EU Summit on Oct 23 that would be critical for eurozone debt debacle. The tone and text of messages from the US Secretary of State in her visit to the country would scare or embolden stock traders.
On the market front, some of the big names: PPL, OGDC, MCB, KAPCO, FFBL, Lucky and Hubco are to announce their July-Sept quarterly results.
Many analysts believe that the trend of earnings and payout by big corporates would determine the direction of the market.

Mohammed Saleem Mansoori

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