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Tuesday, 6 December 2011

STOCK MARKET UPDATE: 07.12.2011


Stock



Karachi Stocks Down 174.89 Points:
KARACHI, Dec 02: At close of trading, the KSE-100 index was at 11382.48, down 174.89 points

December 02, 2011

TOP  5  SCRIPTS GAINERS AND LOOSERS:
Colgate Pakistan
Rs 23.29
Nestle Pakistan
Rs (112.55)
Unilever Pak Ltd
Rs 21.00
Attock Petroleum
Rs (9.42)
Bata Pakistan
Rs 18.48
National Refinery
Rs (9.34)
Siemens Pakistan
Rs 17.47
Fauji Fertilizer
Rs (5.53)
Al-Ghazi Tractor
Rs 6.90
P.S.O.
Rs (5.44)

KSE 30 – Shares Index
Previous 10,819.87, Friday’s 10.594.82, minus 225.05 points.
KSE 100 – Shares Index
Previous 11,557.37, Friday’s 11,372.21, minus 185.16 points.
MARKET CAPITALIZATION
Previous Rs.3,007.649bn, Friday’s 2,961.386bn, minus 46.263bn.
VOLUME LEADERS
Fauji Fertiliser Bin Qasim 3,282m, National Bank 2.469m, Fauji Fertiliser 2.385m, J.S.& Co,2.341m, Fatima Fertiliser 2.047m shares.
TOTAL VOLUME
36.050m shares
TOTAL
TONE:bearish,total listed 638,actives 320,inactives 318,plus 64,minus 156,unchanged 100



Index loses 185 points on panic selling
KARACHI, Dec 2: The shares market on Friday fell across the board on panic selling by all and sundry followed by reports that the US Senate has approved the bill linked to stopping military aid to Pakistan.
The panic was also reflected in an early plunge of about 300 points in the KSE 100-share index but later institutional support on the blue chip counters allowed it to close with clipped loss of 185.16 points at as compared to 11,557.37 a day earlier as leading base shares fell like the house of cards on persistent un-loadings.
Analysts said the standoff with the US on some national issues after the Nato attack on army check-posts did not allow consolidation forces to come into full play for obvious reasons.
The war with the US, however, may not be imminent and the diplomacy could win the peace perceptions in the final analysis, but the current uncertainty on national pride could well prove a double edged weapon for the shaky investors, they said.
But hopes of advent of year-end covering purchases and portfolio adjustments have a role to play, though in phases, although its manifestation is still awaited, they added.
Some of the blue chips in the oil sector, however, came in for renewed modest support and evoked stray sympathetic support on other counters and absorbed a good part of the weekend selling, floor brokers said.
The weakness of the recent trend setters, fertiliser shares weighed heavily against the underlying sentiment followed by conflicting reports about the supply of gas did not allow the broader market to respond to its oversold positions, they added.
Top gainers were led by Colgate Pakistan and Unilever Pakistan, up Rs23.29 and 21.00, while losers included Nestle Pakistan and Attock Petroleum, off Rs112.55 and 9.42, respectively.
Traded volume showed a modest increase at 36.050m shares from the previous 28m shares but losers held a strong lead over the gainers at 156 to 64, with 100 shares holding on to the last levels.
The active list was topped by Fauji Fertiliser Bin Qasim, off Rs1.24 at 52.95 on 3m shares followed by National Bank, lower by
Rs1.48 at 40.37 also on 3m shares, Fauji Fertiliser, sharply lower by Rs5.53 at 158.73 on 2m shares, Fatima Fertiliser, easy by 20 paisa at 22.80 on 2m shares, JS & Co, lower 17 paisa at 5.44 on 2m shares, PTCL, steady by nine paisa at 10.53 also on 2m shares, and Lotte Pakistan, easy by 27 paisa at 9.38 on 1.582m shares.

They were followed by OGDC, off Rs1.96 at 152.38 on 1.305m shares, NIB Bank, easy by four paisa at 1.25 on 1.102m shares and Azgard Nine, lower by two paisa at 3.50 on 1.070m shares.
FUTURES CONTRACTS: Fauji Fertiliser Bin Qasim also led the list of losers on the forward counter, off 1.36 at 50.41 on 0.827m shares followed by Fauji Fertiliser, sharply down by Rs5.58 at 160.09 on 0.753m shares and National Bank, lower by Rs1.60 at 40.67 on 0.717m shares.
They were followed by Engro Corporation, off 2.66 at Rs124.07 on 0.695m shares and Pakistan Oilfields, lower by 3.95 at 355.63 on 0.352m shares.
DEFAULTER COs: The trading activity on this counter was slow as barring Tahi Textiles, which came in for stray support and rose by eight paisa at 0.26, on 19,000 shares, all others were fractionaly traded under the lead of Elahi Cotton, which was marked down by one rupee at Rs4.50 on 500 shares.
DIVIDEND: Dadex Eternit, cash ad interim at the rate of 178 per cent for the half year ending June 30, 2012.

SECP to consult stakeholders on market issues
KARACHI, Dec 3: Imtiaz Haider, Commissioner, Securities Market, at the Securities and Exchange Commission of Pakistan (SECP), said that the apex regulator was open to consultations with the broker community for the solution of market related issues.In answer to queries on Saturday, regarding the points raised by the stock brokers at their meeting held after the trading hours the previous day, the SECP commissioner said that modalities of collection of the Capital Gains Tax (CGT) were being discussed with the Federal Board of Revenue (FBR).
He said that the regulator had taken up the case of CGT collection with the tax collection authorities and highlighted the fact that volume of business at the capital market had shrunk as a result of investors` nervousness over its collection methodology, which in turn had reduced the amount of money collected.
Secondly, he said that the “concept paper” on brokers` registration regime, was just that—a concept paper.
“It is not a directive and SECP has already said that it would initiate consultation process with the stakeholders before putting regime into effect.”
He said that the figure of minimum capital requirement for brokers, proposed at Rs400 million in the `concept paper` was not rigidly imposed and it could be reviewed after talks with all stakeholders.
The Commissioner Securities market, SECP, however, defended the apex regulator`s initiatives at risk management at the stock markets.
He said that it was essential that stock brokers were in sound financial health; turn corporate and develop a certain level of competence.
The several stock crises since 2000 had demonstrated that few financially weak stock brokers, who were prone to default could spoil the entire market, putting it to risk.
“A broker has licence to deal with public money,” said the SECP Commissioner, adding that it was the responsibility of the apex regulator to ensure that the investors` money and confidence in the market were adequately protected.
Earlier, on Friday afternoon an informal meeting of the stock brokers was held at the Karachi Stock Exchange where around 90 members, out of the 200-strong fraternity participated.
Thoroughly annoyed at the paltry volumes and a negative return to date of 4 per cent this year, the angry brokers vent their feelings.
A press release issued after the meeting stated that the members discussed the reasons for massive fall in trading volumes and lack of retail participation at the Exchange.
“It was overwhelmingly observed that after the imposition of Capital Gain Tax (CGT), trading volumes at the Exchange have fallen to 14 years low resulting in meagre collection of taxes by the government, and industry-wide unemployment,” the broker press release stated.
Members contended that the specter of CGT and its applicable method of collection were driving away small investors which in turn, were stifling investment activities in the organised sector.
The brokers argued that they as well as all investors were tax payers and the best way to collect gain tax on share trading was to collect the tax under presumptive tax regime.
“This will not only enhance the revenues of the government but also help in improving the working of tax department and overall confidence of investors.”
Further the members also discussed the concept paper on New Brokers Registration Regime, and in light of extremely low trading volumes they believed that it was not an appropriate time to implement this regime.
“They rejected the idea of brokers minimum capital requirement for full service brokers i.e. Trading members + Clearing members) to be enhanced to Rs400 million and they also did not accept the concept of creating a separate category for clearing members and trading members,” the press release concluded.

Mohammed Saleem Mansoori

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