DAILY STOCK MARKET UPDATE: 17.11.2011

Stock

Karachi Stocks Down 1.24 Points:
KARACHI, Nov 16: At close of trading, the KSE-100 index was at 11,992.77, down 1.24 points.

November 16, 2011

TOP  5  SCRIPTS GAINERS AND LOOSERS:

Bhanero Textiles	Rs 10.88	Bata Pakistan	Rs (9.99)
Unilever Pakistan	Rs 10.06	Nestle Pakistan	Rs (9.30)
Exide Pakistan	Rs 3.72	Hino Pak	Rs (5.22)
Pak Oilfields	Rs 2.73	Fauji Fertiliser	Rs (4.09)
Pakistan Petroleum	Rs 2.36	Attock Petroleum	Rs (4.08)

KSE 30 – Shares Index	Previous 11,358.07, Wednesday’s 11,333.91, minus 24.16 points
KSE 100 – Shares Index	Previous 11,994.01, Wednesday’s 11,992.77, minus 1.24 points
MARKET CAPITALIZATION	Previous Rs3,122.675bn, Wednesday’s 3,122.909 bn, plus 234m
VOLUME LEADERS	Fatima Enterprise 6, 538m, DG Khan Cement 3.776m, Engro Corporation 3.558m, Fauji Fertiliser 3.335m, JS & Co 2.407m shares.
TOTAL VOLUME	51.340m shares
TOTAL	TONE: easy, total listed 638, actives 336, inactives 302, plus 90, minus 134, unchanged 112

Stocks suffer fractional fall

KARACHI, Nov 16: The shares market on Wednesday remained under pressure for the third session in a row as investors were still undecided whether or not to resume covering operations at the recent decline.
The KSE 100-share index ended with a fractional decline of 1.24 points after having again breached through the psychological barrier at 12,126.54 at one stage aided by strong support in the OGDC and Pakistan Petroleum and fresh pruning in some other index heavy-weights, notably Fauji Fertiliser and Engro Corporation.
After having absorbed the positive fallout of the new PPL-OGDC Nashpa oil discovery, which is billed to add significantly to
national
oil output, now all were awaiting some fresh market triggers, analyst Ahsan Mehanti said.
He said that the fact that benchmark ended close to the barrier reflects that bears failed to cause a major impact in the prevailing price trend, which could lead to a “big turnaround any day.”
Another analyst Samar Iqbal thinks heating up of the political atmosphere and investor worries over the future share business out-look seems to have taken steam out of the market temporarily.
He hoped the near status quo could well prove a turning point in the market behaviour even tomorrow as leading bulls are said to be on the lookout for a change on technical reasons also. Prominent gainers included Bhanero Textiles and Unilever Pakistan, up by Rs10.88 and 10.06, while losers were led by Bata Pakistan and Nestle Pakistan, off Rs9.99 and 9.30, respectively.
Traded volume showed a modest increase at 51.340m shares from the previous 49m shares, but losers held an active lead over gainers at 134 to 90, with 112 remaining unchanged at the last level.
The active list was led by Fatima Fertiliser, lower by 49 paisa at Rs23.86 on 7m shares followed by DG Khan Cement, steady 18 paisa at 21.18 on 4m shares, Engro Corporation, off Rs1.39 at 133.11 also on 4m shares, Fauji Fertiliser, lower by Rs4.09 at 183.63 on 4m shares, JS & Co, easy be one paisa at 5.60 on 3m shares, Maple Leaf Cement, firm by 20 paisa at Rs2.30 on 2m shares and National Bank, steady by seven paisa at Rs44.67 on 2m shares.
They were followed by Bank Al Falah, up 20 paisa at 11.83 on 2m shares, OGDC, higher by 92 paisa at 155.90 on 2m shares and Pakistan Petroleum, up Rs2.36 at 182.17 on 1.5m shares.
FUTURE CONTRACTS: Engro Corporation came in for active selling at the overnight rise and was marked down by Rs1.35 at 133.46 on a large turnover of 1.444m shares followed by Fauji Fertiliser off Rs4.01 at 178.68 on 0.947m shares and OGDC, up 77 paisa at 156.33 on 0.202m shares.
They were followed by Fauji Fertilisr Bin Qasim, easy 60 paisa at 60.49 on 0.236m shares and DG Khan Cement, up 16 paisa at 21.23 on 0.225m shares.
DEFAULTER COS: Genertech Power remained under pressure throughout the session and was quoted lower by two paisa at 0.36 on a large volume of 1.996m shares, followed by SS Oil and Service Fabrics, up 24 paisa at Rs4.64 and lower by five paisa at 0.30 on 3,000 shares each.

KSE to launch Stock Index Future Contracts

KARACHI: The Karachi Stock Exchange announced the launching of Stock Index Futures Contracts (SIFC) from January 2012.
In a notice delivered to members on Wednesday, the exchange stated that SIFC would be started in two sectors: the Oil & Gas and the Banking.
In oil and gas, four stocks (OGDC, POL, PSO and PPL) would be covered which would constitute 89 per cent of the entire free float of the sector. Seven stocks would be tradable in Banking (MCB, NBP, UBL, HBL, BAFL, BAHL and ABL), which would amount to 82 per cent of the banking sector’s free float.
The exchange explained modalities of the new product. But traders were not quite jubilant over the initiative.
They pointed out that “Futures Contracts” were already in the market, but were unable to catch investor attention.
Mohammad Sohail, CEO at brokerage Topline Securities explained why: “In order to develop Derivative Market, there has to be a Market Maker,” he said and added that the country’s stock markets had not so far found any Market Maker in any
derivative product.
In regard to the SIFC, the bourse stated in the notice on Wednesday that the product offers opportunities to investors wishing to gain exposure in specific sectors without actually buying each share in that sector.
“Such investors can use SIFC on Sector Indices to take positions in an entire sector which can be purchased and sold easily and inexpensively,” the bourse stated. So what exactly are SIFC Contracts? The Exchange defined SIFC contracts on tradable
benchmark indices as agreements to buy or sell a standardised value of a tradable sector index, thereby allowing investors to track performance of a basket of securities in a given benchmark index.
The mark-to-market losses are collected/paid daily, with cash settlement at Rs5 per index point movement and concluded on
maturity (without delivery requirement).
Secondly, the KSE announced that ‘Basket Order Window’ was being made available in Karachi Automated Trading System (KATS) to facilitate efficient hedging mechanism for small investors, high net worth individuals and financial institutions. The Exchange stated: “The Basket Order window shall allow investors to place multiple market orders in ready market with same time-priority through a single mouse click for all stocks within a tradable sector index. Once an order set is placed, the basket
window will show the execution status for each line item in the basket.”
As all the above could sound Dutch to an average member and investor, the KSE management has arranged a series of awareness presentations for market participants which would encompass introduction to tradable sector indices, their trading; working; naming conventions and Risk Management regime. Presentations would be held on Nov 25; Dec 1; 8th; 15th and 22nd.

Mohammed Saleem Mansoori