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Tuesday, 15 November 2011

DAILY STOCK MARKET UPDATE: 16.11.2011


Stock

Karachi Stocks Down 24.61 Points:
KARACHI, Nov 15: At close of trading, the KSE-100 index was at 11,983.87, down 24.61 points. 

November 15, 2011

TOP  5  SCRIPTS GAINERS AND LOOSERS:
Nestle Pakistan
Rs 51.27
UniLever Pakistan
Rs  (64.41)
Engro Corporation
Rs 4.78
Siemens Pakistan
Rs (39.20)
Clariant Pakistan
Rs 4.60
Bata Pakistan
Rs (22.31)
Atlas Honda
Rs 4.35
Millat Tractors
Rs (3.57)
Attock Petroleum
Rs 3.46
Pakistan Petroleum
Rs (2.60)

KSE 30 – Shares Index
Previous 11,380.51, Tuesday’s 11,358.07, minus 22.44 points
KSE 100 – Shares Index
Previous 12,008.48, Tuesday’s 11,994.01, minus 14.47 points
MARKET CAPITALIZATION
Previous Rs.3,127.898bn, Tuesday’s 3,122.675bn,minus 5.223bn
VOLUME LEADERS
PICIC Growth Fund 6.870m, Fatima Fertiliser 6.532m, Engro Corporation 5.178m, Fauji Fertiliser Bin Qasim 3.207m, Lotte Pakistan 3.015m shares.
TOTAL VOLUME
49.272m shares
TOTAL
TONE:easy, total listed 638, actives 350, inactives 288, plus 103, minus 134, unc 113

Stocks fall 14 points on renewed profit-selling
KARACHI, Nov 15: The shares market on Tuesday stayed easy on renewed profit-selling, but fertiliser sector did not toe the market`s general line of action as leading shares ended further higher under the lead of Fauji Fertiliser.
The KSE 100-share index breached through the psychological barrier of 12,000 on fresh selling in some of the pivotals and was last quoted at 11,994.01, off 14.47 points as compared to 12,008.48 a day earlier.
The leading base shares, which remained in active support included Fauji Fertiliser Bin Qasim, Engro Corporation, which has been under pressure for the last couple of sessions followed by conflicting reports about supply of gas to its unit, and some prominent oil shares.But the larger decline was resisted owing to presence of support at the lower levels on some of the blue chip counters, although the buying was too small to evoke sympathetic covering purchases.
“Investors were also worried over the reported foreign outflow from the bourse owing to uncertainty in the global markets owing to euro-zone debt crisis and mostly played safe,” said a leading analyst Ahsan Mehanti.
He said positive earning reports and a record 23 per cent growth in auto sales and remittances were some of the other positive factors, which enabled the market to absorb profit-selling.
Analyst Samar Iqbal said credible performance of the fertiliser sector followed by reports that gas supplies in future to them would be supplied without any interruption also limited the market fall amid a lot of replacement buying.
Among the top gainers, Nestle Pakistan and Engro Corporation were prominent, up by Rs51.27 and 4.78, while losers were led by Unilever Pakistan and Siemens Pakistan, off Rs64.41 and 39.20, respectively.
Traded volume rose to 49.272m shares from the previous 40m shares but losers held a comfortable lead over the gainers at 134 to 103, with 113 shares holding on to the last levels.
The active list was topped by PICIC Growth Fund, steady by three paisa at Rs12.38 on 7m shares followed by Fatima Fertiliser, steady bt 35 paisa at 24.35 also on 7m shares, Engro Corporation, higher by Rs4.78 at 134.50 on 5m shares, Fauji Fertiliser Bin Qasim, up Rs1.09 at 60.87 on 3m shares, Lotte Pakistan, easy by 29 paisa at 10.69 also on 3m shares, DG Khan Cement, easy three paisa at Rs21 on
3m shares and Fauji Fertiliser, off Rs1.54 at 187.72 on 2m shares.
They were followed by Arif Habib Corporation, lower by 12 paisa at 30.54 on also on 2m shares, National Bank, off 54 paisa at 44.60 on 1.217m shares and Maple Leaf Cement, steady by 17 paisa at 2.10 on 1.161m shares. FUTURE CONTRACTS:
Engro Corporation came in for active short-covering at the lower level and was marked up by Rs4.40 at 134.81 on a large volume of 1.547m shares followed by Fauji Fertiliser Bin Qasim, higher by Rs106 at 61.09 on 0.904m shares and Fauji Fertiliser, off Rs1.66 at 182.69 on 0.572m shares.
They were followed by National Bank, easy by 59 paisa at 44.79 on 0.537m shares and Nishat Mills, firm by 37 paisa at 54.52 on 0475m shares. DEFAULTER COMPANIES:
The activity on this counter again remained slow only five shares came in for alternate bouts of buying under the lead of Genertech Power, unchanged at 0.38 on 30,025 shares followed by SS Oil, steady by 10 paisa at 4.40 on 2,500 shares. Others were fractionally traded. BOARD MEETINGS:
Wateen Telecom, on Nov 17, Siemens Pakistan on Nov 24.

2-year term for KSE board proposed
KARACHI, Nov 15: A general body meeting of members of the Karachi Stock Exchange has been called on Dec 8 to decide on extending the term in office of the KSE board from currently prevailing one year, to two years.
An emergent meeting of the board of directors of the KSE was held on Tuesday, which decided to convene a meeting of members on Dec 8 to recommend amendment in Articles of Association with reference to raising the term and “other ancillary matters”.
The board also decided to convene another Extra-ordinary General Meeting (EoGM) on Dec 29 for conducting election of directors for next period, in view of the above referred propo- sed amendments in Articles of Association of the Exchange.
Several stock brokers said that a proposal placed before the general body in a meeting held a couple of months ago to approve the increase in term to three years, was rejected by the members.
Market watchers said it had to be seen if the members give their acceptance to the proposal of two years in office for directors.
Veteran stock broker, Siddiq Dalal said that increasing the time had both its positive and negative aspects.
Those in the fraternity who were not in favour argued that the directors on the sitting board could become lethargic and callous in performance of duties, if they were provided the opportunity to hold the post for two years.
“The early elections keep board members on their toes”, said Mr Siddiq, adding that they were willing to listen to members complaints and rectify errors, for they would be eyeing the next elections.
He said that favourable aspects of increasing the time in office for board members would be continuity in policies and providing more time to the board to implement decisions.
Many members subscribed to that view. One said that generally, it takes several months for the SECP to nominate outside directors, which could complete the board of 10 members each year.
“The board scarcely has time to function for six months before the next election approaches,” said this member. It may be noted that directors on listed company boards function for three years.

Regulatory regime for brokers being revamped
ISLAMABAD, Nov 15: The Securities and Exchange Commission of Pakistan (SECP) is revamping the regulatory regime for brokers of stock exchanges to bring it in line with best practices, standards and principles.
The proposed regime reinforces reforms undertaken, aimed at strengthening procedures and processes at stock exchanges, sound reporting system at brokerage houses and risk-based exposure by brokers to bring in more protection for investors as well as brokerage community.
During the last one decade, capital markets in Pakistan have adopted various best international practices, standards and policies to align themselves with other regional markets.
However, existing broker regime could not be amended to give effect to these developments.
The SECP has, therefore, decided to amend the regime to incorporate stipulations of different legal and regulatory changes made during the past few years.
After a thorough review, a paper specifying the concept of revised Broker Registration Regime has been prepared by the SECP.
As per the concept paper, the revised regime would provide for adequate regulatory framework for corporate brokerage houses, having a strong organisational structure with clear lines of responsibility and authority.
It also provides for framework where only qualified, experienced, sustainable, technically and financially strong market participants can operate as brokers.
Capital adequacy would be aligned with the risk the brokers are exposed to.
Accordingly, different capital requirements would be introduced for different market activities.

Mohammed Saleem Mansoori

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