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Wednesday, 26 October 2011

DAILY STOCK MARKET UPDATE: 26.10.2011


KSE declines 8 points on foreign selling

KARACHI: The Karachi stock market closed in the red zone on Tuesday as offshore participants offloaded their holdings.
The Karachi Stock Exchange (KSE) 100-share index lost 7.96 points or 0.07 percent to close at 11,517.29 points as compared to 11,525.25 points of the previous session. The KSE 30-share index closed with a decrease of 5.79 points or 0.05 percent to 10,896.20 points as compared with 10,901.99 points.
“Cement and fertilizers prices were high, while uncertainty between Pakistan and US relationship dampened the investor sentiment,” said Arif Habib Investments Ltd Director Ahsan Mehanti.
Analysts said although various corporate announcements carried enough sensation to excite market participants, dumping by offshore participants, and hefty rollover volume, along with vague economic and financial picture, disallowed aggressive resistance.
The market turnover decreased by 15.7 percent to 69.23 million shares from its opening at 82.12 million shares. The overall market capitalization lost 0.07 percent to Rs 3.017 trillion as against Rs 3.019 trillion. Losers outnumbered gainers 106 to 129, while 92 stocks were unchanged.
“Debt repayment that starts early next year, absence of International Monetary Fund monitoring and deteriorating economic benchmarks, undoubtedly will keep economic and financial horizon polluted, however widespread triggers will keep the episodes of snap rallies alive,” said Aziz Fida Husein and Co analyst Hasnain Asghar Ali. “Since political and geo-political environments are likely to stay volatile, extreme movements will continue to provide sector and stock swapping opportunities, while companies exposed to various visible threats in the economy can be looked for offloading on strength, while consistent dividend paying and growth reporting companies will continue to prove safe haven for the equity market specific funds.”
The KMI 30-share index decreased by 0.10 percent or 22.19 points to close at 21,414.58 points after opening at 21,436.77 points. The KSE all-share index showed a fall of 0.06 points or 4.77 percent to close at 7,995.88 points as against 8,000.65 points.
“After foreign selling last week investors preferred to book profits at higher levels,” said Topline Securities (Pvt) Ltd equity dealer Samar Iqbal. “Profit-taking was seen in fertilizer stocks, that is why the index after touching a high of 11,671 points saw some correction.”
Investors are eagerly waiting for Fauji Bin Qasim result that will set direction for the market going forward, he added.
Fatima Fert Co was the volume leader with 10.02 million shares as it closed at Rs 24.65 as compared to its opening at Rs 24.07, increasing 58 paisas. staff report

Shares end flat in volatile session

KARACHI, Oct 25: Shares ended flat on the stock market on Tuesday with the KSE-100 index marginally down by 7.96 points. Many market participants thought that the bear spell, which had pushed stocks down by a huge 463 points or nearly 4 per cent last week, was all but over.
The tone of the market was set by the fertiliser sector, where investors looked closely at the news of shortfall in India. Though not directly linked with the neighbouring country, many analysts thought that import by India and resultant increase in regional urea and DAP prices could be healthy for local fertilizer companies.
Aggregate trading volume was low but the market witnessed extreme volatility, with the benchmark KSE 100-index high at 11,670 points and low at 11,496 points, representing variations of as much as 174 points.
Analysts said that market volatility in controlled measure was healthy sign. Analyst Sarfaraz Abbasi at Summit Capital observed that volatility indicates that whatever news reaches the market is incorporated in share values. “It is a sign of healthy, vibrant market,” he said.
Ahsan Mehanti, Director at Arif Habib Investments, commented that strong corporate results announced by Pakistan Petroleum, higher local commodity prices in cement, fertiliser sectors supported the market sentiment in the quarter end earnings announcement session.
He said that investors seemed concerned over uncertainty in Pak-US relations and stocks took the impact despite favourable amendments in SBP banking sector regulations.
Samar Iqbal, equity dealer at Topline Securities, said that investors were eagerly waiting for quarterly results of Fauji Fertiliser Bin Qasim (FFBL) to be announced on Wednesday (today), “which would set the direction for the market going forward”.
The major gainers on Tuesday were Sitara Chemicals up by Rs3.90 at Rs84.40 and Fazal Cloth ex-dividend ex-bonus higher by Rs3.43 at Rs72.06. On the losing side, Unilever Pakistan declined by Rs107.99 at Rs5,712.01 and Nestle Pakistan lost Rs63.24 at Rs3,260.75.
Volume of business declined to 69.226 million shares, from 82.124 million shares on the previous trading session on Friday.
Minus signs dominated with 129 stocks closing lower against 106 ending in the plus columns. Another 92 stocks ended unchanged.On the active list, Fatima Fertiliser dominated trading adding 58 paisa to Rs24.65 on 10.1 million shares. Fauji Fertiliser Bin Qasim took the second place, with a minor decline of 7 paisa at Rs62.28 on 6.9 million shares. Lotte Pakistan PTA was the third most active stock, down 15 paisa at Rs 11.96 on 5.9 million shares.
Other stocks with high volumes included DG Khan Cement up 42 paisa at Rs22.22 on 4.7 million shares; Engro Corporation taking a blunt of blow with a heavy plunge of Rs5.33 at Rs115.99 on 3.3 million shares, but Fauji Fertiliser adding Rs1.12 to its price at Rs178.34 on 2.8 million shares as investors felt that the problems at Engro would not allow it to decrease market price of urea, keeping the earnings strong at other fertiliser companies.
Bank Alfalah rose 26 paisa to Rs11.15 on 2.7 million shares. The textile stocks Azgard Nine down 11 paisa to Rs4 on 2.7 million shares and Nishat Mills taking huge plunge of Rs2.19 to Rs42.30 on 2.1 million shares, amid negative news flows. National Bank added 18 paisa to close at Rs43.96 on 1.8 million shares.
FUTURE CONTRACTS: On the October contract, Fauji Fertiliser Bin showed highest volume of 1.121 million shares closing 25 paisa down to Rs62.34; Engro on 1.1 million shares, plunged by Rs5.55 to Rs116.20; Engro November contract lost Rs4.19 to Rs117.56 on 0.908 million shares; Arif Habib Corporation on 0.754 million shares, shed 14 paisa to Rs30.82 and National Bank of Pakistan gained 18 paisa to Rs44.08 on 0.568 million shares.

 

 

 

SECP’s guidelines for listing

ISLAMABAD: In a bid to promote the capital markets the Securities and Exchange Commission of Pakistan (SECP) has published guidelines for listing of companies through Initial Public Offerings (IPOs).
The guidelines have been issued by the corporate sector regulator to encourage the companies to get listing at a stock exchange for raising funds to meet financial needs.
The SECP guidebook is helpful for the unregistered firms for the purpose of listing, its benefits, minimal requirements and procedure of listing.
The book refers to various provisions of the applicable laws, rules and regulations, the checklist of the contents of an equity prospectus, the format of applications for seeking approval of a stock exchange, and the SECP and the checklist of documents required.
The guidebook can assist the issuers and their lead manager/consultants, the book runners and the underwriters to make their IPOs smoothly and efficiently.
“It is a useful tool to understand the process of approval of the SECP for the issue, its circulation and publication of prospectus and listing of a company on a stock exchange,” said an SECP official, adding that that listing is accompanied with responsibilities as well including public scrutiny.
“There are many specific requirements that the firms need to comply – and the firm managers need to know these requirements to assess whether the company will be able to fully comply,” he added.
Mohammed Saleem Mansoori

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