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Thursday, 8 December 2011

STOCK MARKETUPDATE: 09.12.2011




Stock



Karachi Stocks Up 11.81Points:
KARACHI, Dec 09: The KSE-100 index was at 11404.38, up 11.81 points.(today 10.27 a.m.)

December 08, 2011

TOP  5  SCRIPTS GAINERS AND LOOSERS:
UniLever Pak Ltd
Rs 32.16
Nestle Pakistan
Rs (113.86)
National Refinery
Rs 12.09
Colgate Palmolive
Rs (23.29)
Pakistan Refinery
Rs 10.36
Biafo Ind
Rs (3.46)
Attock Petroleum
Rs 8.16J
Jubilee Spinning
Rs (1.00)
Attock Refinery
Rs 4.58
Crescent Textiles
Rs (0.93)

KSE 30 – Shares Index
Previous 10,444.27 points,Thursday’s 10.618.22,plus 173.95 points
KSE 100 – Shares Index
Previous 11,283.89, Thursday’s 11,392.57, plus 108.68 points
MARKET CAPITALIZATION
Previous Rs.2,937.901bn,Thursday’s 2,964.702bn,plus 108.68bn
VOLUME LEADERS
J.S.& Co 6.369m,Fauji Fertiliser Bin Qasim 4.386m, D.G.Khan Cement 3.994m, Fatima Fertiliser 3.608m,Bank AFalah 3.098m shares.
TOTAL VOLUME
50.274m shares
TOTAL
TONE: steady,total listed 638, actives 311, inactives 327, plus 121, minus 90, unchanged 100


Karachi Stocks recover 108.68 points on positive reports
KARACHI, Dec 8: The stock market resisted fresh fall on Thursday followed by active short-covering on the perception that the existing political setup is expected to stay in place and positive reports from Dubai about president`s health.
The market`s relative strength was also well reflected in the recovery of benchmark as some of the leading base shares, notably terribly mauled fertiliser ones came in for active covering purchases at the current low and so did some others blue chips.
It finished the session at 11,392.57, up about one per cent or 108.68 points as compared to 11,283.89 a day earlier as most of the base shares recovered from the overnight lows.
Fauji Fertiliser, Engro Corporation, Fauji Fertiliser Bin Qasim and some other base shares in the other sectors significantly contributed to put the market back on the rails amid active institutional and speculative support.
The sentiment in part was also aided positively owing to a meeting of the KSE members with the SECP highups and reported understanding on some of the crucial issues, notably capital gains tax linked to stock trading.
“There is no harm to return to the market despite the prevailing panic on the political front,” said a leading analyst Ahsan Mehanti.“All the leading shares, which have fallen have potential of big capital gains no loss.”
But a durable peace in stock trading may not be possible until some of the political issues linked to the future relationship with the US are not sorted out, he added.
Another leading stock analyst Samar Iqbal thinks the sojourn of the president on health grounds would continue to inspire conflicting rumours in his absence but the market may sustain them owing to some objective factors, notably the end of the year and some positive developments linked to it.
He said the current meeting between the highups of KSE and SECP is expected to boost stock trading in the coming weeks if all goes well with the news on the political front.
“The successive shock waves from the political front will continue to haunt investors after regular intervals but that may prove a ploy of the speculative forces to tilt the balance in their respective favours,” another analyst Ashraf Zakaria predicts.
Among the top gainers, Unilever Pakistan and National Refinery were leading, up by Rs32.16 and 12.09, while Nestle Pakistan and Colgate Pakistan led the list of major losers, off by Rs113.86 and 23.29 respectively.
Traded volume rose to 50.274m shares from the previous 38m shares as gainers forced a strong lead over the losers at 121 to 90, with 100 shares holding on to the last levels.
The active list was topped by JS & Co, easy by 13 paisa at 5.12 on 6m shares, followed by Fauji Fertiliser Bin Qasim, higher by Rs1.91 at 52.44 on 4m shares, DG Khan Cement, firm by 59 paisa at 20.34 also on 4m shares, Fatima Fertiliser, steady by 70 paisa at 23.14 on 4m shares, Bank Al Falah, firm by 34 paisa at 11.87 on 3m shares, Engro Corporation, higher by Rs1.26 at 118.19 also on 3m shares, and Fauji Fertiliser, higher by Rs3.68 on 3m shares.
They were followed by Lotte Pakistan, firm by 31 paisa at 9.10 on 2m shares, National Bank, up 96 paisa at 41.03 on 2m shares and Arif Habib Corporation, firm by 68 paisa at 28.38 also on 2m shares.
FUTURE CONTRACTS:Fauji Fertiliser Bin Qasim also led the list of actives on the forward counter, up by Rs1.80 at 49.82 on 1.100m shares, followed by Engro Corporation, higher by Rs1.24 at 119.14 on 1.073m shares, and Fauji Fertiliser sharply higher by Rs3.30 at 156.31 on 1.029m shares.
National Bank followed them, firm by 98 paisa at 41.31 on 0.805m shares and Attock Refinery, higher by Rs5.07 at 116.69 on 0.573m shares.
DEFAULTER COs:The activity on this counter remained slow in the absence of fresh buying support. Price changes were fractional barring Elahi Cotton, which fell by one rupee at Rs2.50 on 500 shares.
The largest turnover of 5,020 shares was recorded in Genertech Power, lower 14 paisa at 0.30 followed by Taj Textiles, steady by two paisa at 4,500 shares.

Stock Brokers reject two-year term for KSE directors
KARACHI, Dec 8: The stock brokers at Karachi Stock Exchange rejected the proposal to raise the term in office of the directors on the board of the bourse to two years, from current prevailing one year.
At the extra-ordinary general meeting of the members held on Thursday, the brokers voted overwhelmingly in favour of the continuation of one year term.
According to several members who attended the meeting, only four votes were cast in favour of the proposal, while 57 voted against.
In all, 61 brokers, out of a total of 200, attended the meeting.
A senior member said that the KSE Board had moved the resolution for increase in time line on the advice of the apex regulator, Securities and Exchange Commission of Pakistan (SECP).
The two-year term was proposed after the members in an earlier meeting refused to extend it to three years.
For the corporates, the Company Law provides for a three-year term of the board. But a senior stock broker argued that the law also allows directors to choose a chairman instead of being nominated, as is done in the case of bourses by the SECP.
He also said that it was the exclusive right of members to change the rules and it had all to pass through a long drawn out process.
One such condition was that the change in articles of association could be made at a meeting at which half of the registered members were present and three-fourth of them supported the amendment.
FBR-KSE meeting
A delegation of representatives of the Karachi Stock Exchange met the officials of the Federal Board of Revenue (FBR) in Islamabad on Thursday.
Abdul Qadir Memon, a nominee director of the SECP and Ahmed A. Mitha, Chief Financial Officer of KSE, presented the case of low collection of Capital Gains Tax under the new regime due to investors` nervousness over the collection method.
According to a senior member, the KSE tried to convince the taxation authorities that the best way to collect the gain tax on shares trading was to collect it under presumptive tax regime, which the bourse believes, would enhance the revenues of the government as well as help in improving the working of tax department and building up investor confidence.
Neither the FBR nor KSE issued a public statement over the outcome of talks, but `circumstantial evidence` suggested that the meeting may have concluded on a positive note for the bourses.
This was represented by the fact that the Karachi stock market, which had started another session on Thursday in the red with the index shuttling between plus and minus territory, took a sharp turn to the North finishing on a huge gain of 109 points.
The positive outlook creeping into the market after numerous dull sessions. However, it was interesting to note that the sudden flurry of activity that spiraled share prices, coincided with the conclusion of the FBR-KSE delegation meeting at around mid-day.
Calls made in the evening to a KSE delegate to know what had transpired, went unanswered. A public statement may possibly be made on the floor of the exchange on Friday.
Mohammed Saleem Mansoori

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