Daily Stock Market update: 22nd Dec,2011

Stock

Karachi Stocks Up 23.92 Points:
KARACHI, Dec 22: The KSE-100 index was at 11292.71,up 22.64 points.(today 22.12.2011,time:10.41 am)

December 21, 2011

TOP  5  SCRIPTS GAINERS AND LOOSERS:

Nestle Pakistan	Rs 122.28	Clariant Pakistan	Rs (5.23)
Siemens Pak	Rs 31.37	Attock Petroleum	Rs (4.71)
Wyeth Pak Limited	Rs 30.33	Millat Tractors	Rs (4.43)
Atlas Honda Ltd	Rs 4.48	Atlas Battery Ltd	Rs (4.37)
Al-Ghazi Tractors	Rs 2.70	Fauji Fertiliser	Rs (2.43)

KSE 30 – Shares Index	Previous 10,409.25, Wednesday’s 10.308.09, minus 101.16
KSE 100 – Shares Index	Previous 11,338.04, Wednesday’s 11,268.55, minus 69.49 points
MARKET CAPITALIZATION	Previous Rs.2,938.750bn, Wednesday’s 2,922.213bn, minus 16.537bn
VOLUME LEADERS	Fatima Fertiliser 8.869m, Engro Corporation 4.663m, Hub-Power 3.884m,Fauji Fertiliser 2.600m, Fauj Fertiliser Bin Qasim 2.414m shares.
TOTAL VOLUME	46.576m shares
TOTAL	TONE; easy, total listed 638, actives 304, inactives 334, plus 92, minus 113, unchanged 99

Karachi Stocks fall 69 points on renewed profit-taking

KARACHI, Dec 21: The stock market on Wednesday failed to sustain the overnight run-up followed by active selling in the energy sector on reports of imposition of gas cess by next month.
After overnight’s two per cent gain, the benchmark was quoted lower by 69.49 points at 11,268.55 points as the same set of leading shares, which pushed it up, ended lower on renewed profit-taking at the previous rise.
Fertilizer shares led the decline under the lead of blue chips, such as Fauji Fertilizer and Engro Corporation, followed by reports of increase in urea prices, while oil shares fell in unison under the lead of OGDC, Pakistan Petroleum, and other pivotals.
Fresh foreign selling in Engro Corporation after overnight recovery also caused selling in other leading shares but Fatima Fertilizer was an exception, which came in for active support at its lower rate and led the list of actives.
Floor brokers said the market lacks consistency in support even from the institutional investors as many are not inclined to hold long positions in view of the prevailing political situation.
They said short-term jobbing bouts of buying and selling appear to be the hallmark of the entire trading activity and until perception of political stability gains credibility, the performance of the market may remain volatile.
“In developing political scenario, the talk of year end buying or portfolio adjustment appears to have no relevance to the ground situation as everybody is playing safe and for good reasons too,” some others said.
Leading gainers were led by Nestle Pakistan and Siemens Pakistan, up Rs122.28 and 31.37, while losers were led by Clariant Pakistan and Attock Petroleum, lower by Rs5.23 and 4.71.
Traded volume fell to 46.576m shares from the previous 78m shares as losers held a fair lead over the gainers at 113 to 92, with 99 shares holding on to the last levels.
The active list was led by Fatima Fertilizer, up 33 paisa at Rs22.82 on 9m shares followed by Engro Corporation, off Rs2.35 on 5m shares, Hub-Power, lower by Rs1.02 at 34.50 on 4m shares, Fauji Fertilizer, off Rs2.43 at 154.86 on 3m shares, Fauji Fertilizer Bin Qasim, easy by 92 paisa at 47.11 also on 3m shares, JS & Co, unchanged at 4.19 on 2m shares, and Bank Al-Falah, easy 16 paisa at 11.35 on 2m shares.
They were followed by WorldCall Telecom, steady by nine paisa at 0.90 on 2m shares, DG Khan Cement, easy 22 paisa at 18.78 on 1.403m shares and Nishat Chunian, up 40 paisa at 18.24 on 1.017m shares.
FUTURE CONTRACTS: Engro Corporation came in for renewed selling on reports of increase in urea prices and was marked down by Rs2.49 at 94.54 on 1.558m shares followed by Fauji Fertilizer, off Rs2.68 at 152.90 on 0.861m shares and Fauji Fertilizer Bin Qasim easy by 82 paisa at 47.21 on 0.619m shares.
They were followed by Attock Refinery, off Rs1.69 at 110.19 on 0.298m shares and Pakistan Oilfields, steady by 15 paisa at 357.72 on 0.233m shares.
DEFAULTER COs: The activity on this counter was slow in the absence of active buyers. Prices, therefore, generally maintained the overnight levels.
Dost Steel came in for stray support and was quoted higher by one paisa at Rs1.20 on 13,148 shares followed by Genertech Power, easy by the same amount at 0.34 on 10,002 shares and SS Oils, up 79 paisa at Rs6.00 on 5,500 shares.
DIVIDEND: Adam Sugar Mills, cash 25 per cent, Pangrio and Mirza Sugar Mill, both nil for the year ended Sept 30, 2011.

Fertilizer stocks in sharp focus

KARACHI, Dec 21: Shares in fertilizer companies have taken centre stage on the country’s stock market, replacing the heavy-weight oil and gas exploration companies.
Four of the five stocks that witnessed the biggest volume of business on Wednesday represented the fertilizer sector: Fatima, the volume leader with 8.9 million shares; Engro at second place with 4.6 million shares, Fauji at fourth with 2.6 million shares and Fauji Fertilizer Bin Qasim at fifth with 2.4 million shares.
The resumption of gas supply to urea producers and its taper off, in turns, has placed fertilizer companies into sharp focus.
Several stock brokerage firms pushed notes in the market in the afternoon on Wednesday, quoting unnamed sources, saying that effective Thursday, Engro Corporation was to raise prices of urea by around Rs100 per bag to Rs1,580 per bag.
Differential would be collected on all the pending orders, they said. Engro Corporation, however, did not make an announcement of price increase, if any, at the stock market on Wednesday.
Analysts contended that the company had reversed its previous decision by raising urea prices by Rs100 (inclusive of sales tax) per 50 kg bag to Rs1,580 per bag (dealer transfer price).
Retail price for the farmer would stand close to Rs1,600 a bag effective from Thursday.
“The price-hike is primarily due to non-availability of gas to Engro new plant (Enven) since last 13 days in spite of government’s commitment to provide gas in December to meet higher demand in peak Rabi season,” said an analyst.
In line with past practice, other fertilizer producers were expected to raise prices in the next few days.
Market watchers said that a risk factor that had surfaced over the past few months was the government’s intention to impose (possibly from January 2012) gas cess on various sectors, including fertilizer to check rising gas demand.

Mohammed Saleem Mansoori