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Tuesday, 28 February 2012


KARACHI STOCK EXCHANGE-DAILY MARKET TREND: DAILY STOCK MARKET UPDATE: 29.02.2012: Stock Karachi Stocks Up 145.15 Points: KARACHI, Feb 29: The KSE-100 index was at 12739.22, up 145.15 poi...



Karachi Stocks Up 145.15 Points:

KARACHI, Feb 29: The KSE-100 index was at 12739.22, up 145.15 points.(today 12.07 pm)

February 28, 2012


Indus Dyeing
Rs 8.99
Rafhan Maize
Rs (50.00)
Rs 5.33
Bata Pakistan
Rs (32.51)
JWD Sugar Mills
Rs 3.87
Dream world
Rs (7.05)
Attock Refinery
Rs 3.52
Bhanero Textiles
Rs (6.00)
EFU General
Rs 3.16
Attock Petroleum
Rs (4.22)

Karachi Stocks undergo mild correction
KARACHI, Feb 28: The share market on Tuesday suffered a mild reaction after having risen by about five per cent during the last six straight weeks in a sustained run-up as investors were not inclined to take even a technical breather aided by higher corporate announcements.
A modest decline of 4.44 points in the benchmark index at 12,739.22 reflected that only extreme positions were adjusted on some of the counters as far as the broader market was concerned it maintained a status quo.
Much of the activity remained confined to the cement sector followed by reports of higher export earnings and above market expectations payout by Lucky Cement. It has now replaced the hereto trend-setter fertiliser sector, which came in for profit-selling under the lead of Fauji Fertiliser and Engro Corporation and some others.
“Essentially, it was a technical correction long overdue in a highly overbought market,” said a leading analyst Ahsan Mehanti.
“But the underlying sentiment remained uppishly inclined thanks to renewed buying in the cement sector”.

He said those who were anticipating a massive sell-off at the current higher levels were a bit disappointed as the market at no stage reflected that the current run-up was overdone.
“At one stage it seemed that all roads were leading to the National Bank ahead of its board meeting and expectations of higher payout,” analyst Samar Iqbal said “various rumours about its payout may not be in line with objective conditions but those who
are close to top ones may not be that fool”.

A large volume of about 15m shares and an increase of Rs2.48 in its share value at Rs52.11 reflects that something positive is around for the stakeholders of the NBP, he said.
However, a large volume of well over 200m shares, equally shared by the recent actives including the low-priced ones showed that investors were not inclined to take profits at the rising prices and holding on for still better results, some others said.
Leading losers led the list of actives under the lead of Rafhan Maize and Bata Pakistan, off Rs50 and Rs32.51, while among the top gainers Indus Dyeing and Pak International Container Terminal were leading, up by Rs8.99 and Rs5.33 respectively.
Traded volume rose to 217.592m shares from the previous 206m shares but losers held a comfortable lead over the gainers at 153 to 115, with 79 shares holding onto the last levels.
The active list was topped by JS & Co, easy 48 paisa at Rs10.01 on 26m shares followed by Pace Pakistan, firm by 60 paisa at Rs2.57 on 21m shares, National Bank, sharply higher by Rs2.48 at Rs52.11 on 15m shares, D.G. Khan Cement, easy 31 paisa at Rs27.92 on 15m shares, Bank of Punjab, off 80 paisa at Rs7.74 on 11m shares, Lucky Cement, higher by Rs2.06 at Rs97.71 on 10m shares and Azgard Nine, lower by 36 paisa at Rs6.81 on 9m shares.
They were followed by Bank Alfalah, steady by four paisa at Rs14.08 on 7m shares, IGI Investment Bank, firm 16 paisa at Rs1.46 on 6m shares and Dewan Cement steady by 26 paisa at Rs2.12 also on 6m shares.
FUTURE CONTRACTS: The active list on this counter was led by D.G. Khan Cement, easy by 29 paisa at Rs28.17 on a large volume of 3.775m shares followed by National Bank, higher by Rs2.50 at Rs52.63 on 2.600m shares and Engro Corporation, easy by four paisa at Rs108.32 on 1.511m shares.
They were followed by Attock Refinery, higher by Rs3.39 at Rs127.56 on 1.191m shares and Fauji Fertiliser, off Rs1.98 at Rs123.18 on 0.916m shares.
DEFAULTER COUNTER: Dost Steels again led the list of actives, up 11 paisa at Rs2.26 on 0.235m shares followed by Kohinoor Power, easy by 27 paisa at Rs2.00 on 0.134m shares, Redco Textiles, easy two paisa at Rs0.48 on 89,000 shares, Kohinoor Industries, lower by two paisa at Rs1.04 on 63,420 shares and Brothers Textiles, lower seven paisa at Rs1.10 on 40,500 shares.
DIVIDEND: The following companies announced dividend for the year ended Dec 31, 2011. Bata Pakistan cash 200 per cent, Habib Metropolitan Bank, 15 per cent, Linde Pakistan 50 per cent and Quality Textiles, interim 10 per cent.

Minimum holding of 120 days for CGT exemption
Karachi: The apex regulator Mr Muhammad Ali and the member advisory board, Federal Board of Revenue (FBR) Mr Shabbar Zaidi stated on Tuesday that the proposal of ‘no questions to be asked on sources of funds’ invested in stocks, for two years (till June 2014) in the CGT regime, would not facilitate ‘whitening’ of ‘black’ money. They stressed that ‘caveats’ were being placed to block such activities. The minimum holding period of 120 days on ‘weighted average’ basis was to be fixed, which would rule out money-laundering. Holding of less than 120 days (four months) would be open to investigation of source of funds, they said.
At a mid-morning discussion on a private TV channel, the SECP chairman reassured that the mechanism and automatic system for collection of CGT by the National Clearing Company of Pakistan Limited (NCCPL) were being put into place. “We are optimistic that the reformed regime of CGT will be implemented, as scheduled, from April 1”, he said. Mr Muhammad Ali observed that the objectives of CGT were three-fold: To document the markets; increase tax revenue and bring more taxpayers into the tax net. “In the next two years (due to the levy of CGT), all capital market would be fully documented”, he said. Mr Muhammad Ali stressed that checks and balances would apply to stem any effort at money laundering. The CGT was imposed in July 2010, but could not be implemented in two years, which necessitated its reformation.
Mr Shabbar Zaidi said that it was transition from presumptive tax to CGT. The provision of collection by NCCPL could be described as: “Outsourcing of tax collection by the government”, he said and added that, it should be seen as an independent party (NCCPL) performing the functions of collection for FBR, “for the time being”.
The step would set at rest investors’ fear of harassment at the hands of the taxman if he came in direct contact with him. He said that the FBR had suggested adding caveats to the amnesty proposal so that money-laundering could be prevented.
Earlier in the morning a report released by brokerage InvestCap, analysts Khurram Schehzad and Abdul Azeem wrote that during the meeting of the Tax Reform Coordination Group (TRCG) on Friday last, the FBR proposed changes in reformed CGT proposals put forwarded by the SECP and endorsed by the Ministry of Finance (MoF).
One of them related to the complexities in adding the new law to the prevailing Income Tax Ordinance, 2001. After a day long discussion in which the TRCG sought views of the stakeholders, it was proposed that a constitutional way was to be found in implementing the changes in the CGT regime.
It was decided that it could be done through the introduction/addition of an Eighth Schedule to the Income Tax Ordinance 2001 to handle all the CGT-related issues and amendment of total immunity to investigation of the source of income of stock investors till 2014, by adding a minimum holding period.
The addition of the new Schedule, the TRCG thought could be quickly done through a Presidential Order which, later on, would be attached as an essential part of the Ordinance through the Finance Act. The analysts believed that the amended Ordinance might be on time, before the Apr’01, 2012 deadline earmarked for the changed CGT regime. Yet its implementation was thought to be effectively in place not earlier than the announcement of the upcoming budget, considering that the Senate elections due in March may divert all official attention to politics.
Corporate Result:
Nishat Chunian profits nosedive
KARACHI: Nishat Chunian, the textile manufacturing company, profits plummeted 91% to Rs48 million in the first half of fiscal 2012.
The decline in the spinning business margins was expected amid sharp fall in yarn prices, which took down gross profit levels for the period from July to December 2011, according to analysts.
After posting a loss of Rs86 million in the first quarter of fiscal 2012 amid declining spinning and power division margins, the company returned to profitability in the second quarter on the back of slightly better gross margins, says a JS Global Capital research note.
Expensive leftover inventory carried forward from financial year 2011 deteriorated Nishat Chunian’s gross margin as the company incurred inventory losses.
Net sales eased by 2.6% to Rs8.3 billion in the first half of fiscal 2012 against Rs8.5 billion in the same period last year.
However, other operating income almost doubled to Rs410 million during the period under review against Rs207 million in the same period last year. Dividend income from Nishat Chunian Power (NCPL) supported the bottom-line as the power subsidiary of the Nishat Chunian Group announced a Re1 per share cash dividend that would add Rs176 million to the other income.
Availability of cotton at cheaper rates is expected to improve the bottom-line of the company as the company is expected to shed all the previously bought expensive cotton inventory that was purchased at Rs8,500 per maund.
Meanwhile, Nishat Chunian Power profits depicted a 12% growth to Rs1.02 billion compared with Rs914 million in the same period last year.
The company declared an interim dividend of Rs1.5 per ordinary share of Rs10 on the back of easing liquidity following the conversion of circular debt to Term Finance Certificates.
Mohammed Saleem Mansoori

Sunday, 26 February 2012


KARACHI STOCK EXCHANGE-DAILY MARKET TREND: DAILY STOCK MARKET UPDATE: 27.02.2012: Stock Karachi Stocks Up 204.04 Points : KARACHI, Feb 24: At close of trading, the KSE-100 index was at 12719...



Karachi Stocks Up 204.04 Points:
KARACHI, Feb 24: At close of trading, the KSE-100 index was at 12719.96, up 204.04 points.

February 24, 2012


Unilever Pakistan
Rs 92.44
Dadex Eternity
Rs (2.97)
Nestle Pakistan
Rs 44.39
Habib Bank
Rs (2.61)
Attock Petroleum
Rs 21.02
Exide Pakistan
Rs (2.00)
Millat Tractors
Rs 19.91
Reliance Weaving
Rs (1.58)
Service Industries
Rs 8.27
United Bank
Rs (1.03)

Equities sustain gains above 12,700-level
KARACHI, Feb 24: The share market on Friday was back on the rails after having fully digested the overnight losses followed by strong covering purchases at the lower levels on the blue chip counters under the lead of fertiliser, cement and oil scrips.
The market’s buoyant mood is also well reflected in the KSE 100-share index, which soared to new peak level above 12,700 points at 12,706.52 points or 1.52 per cent and 190.60 points in a session.
Although volume figure failed to keep pace with the mounting buystops as investors held on to their positions anticipating fresh increase in prices, price flare-up on fertiliser sector was fairly aggressive at the current lows. Both Fauji Fertiliser and Engro
Corporation remained in the limelight and ended with sharp recoveries.

An idea of weekend buying flurry, which is considered a rare phenomenon as investors generally hate to take risks ahead of an intervening two closures, reflects that despite negative news from the political front many are not inclined to miss the current lower levels on some choice sectors, analyst Samar Iqbal said.
“A loud whispering that the Federal Board Revenue (FBR) may soon accept amended proposals of the SECP in the Capital Gain Tax (CGT) was made an excuse for the weekend snap run-up,” he added.
But another leading stock analyst Ahsan Mehani said the power behind the strong weekend rally appears to be positive fall-out of the chain of higher payouts and bonus shares.
“An increase of about 200 points in the benchmark that too at the closing stages of an eventful week is not a small achievement as reflects its sustained upward drive is seeking to explore the level of 13,000 points not in distant future,” he added.
But much of the buying interest again remained confined to the low-priced shares under the lead of JS & Co, Bank of Punjab and Bank Alfalah, which together accounted for about 70 per cent of the total.
Leading gainers were led by Unilever Pakistan and Nestle Pakistan, up Rs92.44 and Rs44.39 at Rs5,647.44 and Rs3,359.39, while major losers included Dadex Eternity and Habib Bank, off Rs2.97 and Rs2.61 at Rs56.50 and Rs122.56 respectively.
Traded volume showed a modest rise at 192.346m shares from the previous 178.045m shares as gainers held a strong lead over the losers at 166 to 86, with 96 shares holding onto the last levels.
The active list was topped by JS & Co, steady by 13 paisa at Rs10.50 on 25m shares followed by D.G.K. Cement, higher by Rs1.25 at Rs27.18 on 19m shares, Azgard Nine easy by 24 paisa at Rs7.21 on 24m shares, Bank of Punjab, higher by 50 paisa at Rs8.78
on 11m shares, Bank Alfalah, up 43 paisa at Rs14.27 on 8m shares, Fatima Fertiliser, lower 10 paisa at Rs23.74 on 7m shares
and Arif Habib Corporation, up 57 paisa at Rs30.57 also on 7m shares.

They were followed by TRG Pakistan, firm by 25 paisa at Rs2.71 on 6m shares, Nishat Mills, higher by Rs1.69 at Rs51.40 on 6m shares and Engro Polymer, higher by 65 paisa at Rs10.90 also on 6m shares.
FUTURE CONTRACTS: The active list on this counter was again led by D.G. Khan Cement, higher by Rs1.17 at Rs27.40 on 3.036m shares followed by its matured contract, up Rs1.21 at Rs27.16 on 1.864m shares and National Bank, up 58 paisa at Rs50.08 on 2.464m shares.
They were followed by Engro Corporation, higher by Rs5.05 at Rs106.24 on 1.875m shares and Fauji Fertiliser, up Rs3.78 at Rs124.00 on 1.321m shares.
DEFAULTER COMPANIES: Brothers Textiles came in for active short-covering and was quoted higher by 33 paisa at Rs1.03 on a large volume of 0.206m shares followed by Dost Steels, steady five paisa at Rs2.18 on 76.579 shares and Kohinoor Power, firm
by four paisa at Rs2.30 on 32,820 shares.

DIVIDEND: OGDC second dividend 15 per cent, Biafo Industries, cash interim, 10 per cent and Nishat Power, cash interim 10 per cent.

Mohammed Saleem Mansoori

Thursday, 23 February 2012


KARACHI STOCK EXCHANGE-DAILY MARKET TREND: DAILY STOCK MARKET UPDATE: 24.02.2012: Stock Karachi Stocks Up 115.85 Points: KARACHI, Feb 24: The KSE-100 index was at 12631.77, up 115.85 points.(tod...



Karachi Stocks Up 115.85 Points:
KARACHI, Feb 24: The KSE-100 index was at 12631.77, up 115.85 points.(today 12 Pm)

February 23, 2012


Unilever Pakistan
Rs 76.23
Siemens Pakistan
Rs (46.20)
Colgate Pakistan
Rs 34.80
Sheezan International
Rs (4.86)
Nestle Pakistan
Rs 34.64
MCB Bank
Rs (4.46)
Wyeth Pakistan
Rs 31.97
Rs (3.53)
Millat Tractors
Rs 16.43
Attock Petroleum
Rs (3.08)

KSE 100-index sheds 87 points
KARACHI, Feb 23: The highly overbought share market on Thursday took a technical breather after last five weeks sustained run-up as investors made an excuse the below analyst predictions interim OGDC payout.
“An interim earning of Rs9.67 per share and dividend of 15 per cent by the OGDC may not be that bad,” said a leading analyst “but a section of bears was in search of excuses to take profit and made the index-heavy OGDC as a scapegoat”.
But analysts were also expecting bonus shares, which were omitted by the management and the consequent sell-off.
The rise and fall of Re1 in its share value contributes either way 17 points and the Thursday’s decline of about Rs4 just at the heels of an identical overnight rise alone chipped away 70 points from the index, they said.
However, the sell-off appears to be technical rather than real as some of the positive basic fundamentals still point to a bull market in the coming weeks, some others said.
The benchmark KSE 100-index, in which OGDC holds a weightage of 17 per cent, was marked down by 87.75 points at 12,515.92 after early having risen to 12,623.88 points on pre-result buying flurry.
The sustained rise during the last five weeks has made the market ripe for a technical correction and bears strike back after the
OGDC announced its interim working results, floor brokers said.

They said interim payouts from the auto sector, notably cash dividend of 80 per cent by Indus Motors and 20 per cent by the Kohinoor Energy and final of 100 per cent by Sanofi-Aventis were well received in the market and hoped for further good news
in the coming sessions.

Although losers were led by Unilever Pakistan and Shezan International, off Rs46.20 and Rs4.86, the gainers were topped by Unilever Foods and Colgate Pakistan up by Rs76.23 and Rs34.80 respectively.Traded volume fell to 178.045m shares from the previous 272m shares as losers held a fair lead over the gainers at 160 to 112, with 75 shares holding onto the previous levels.
The active list was led by JS & Co, up 62 paisa at Rs10.37 on 41m shares followed by Azgard Nine, firm 34 paisa at Rs7.45 on 18m shares, Fatima Fertiliser, easy by 16 paisa at Rs23.84 on 10m shares, Pace Pakistan, steady by 11 paisa at Rs2.27 also on 10m shares, Bank of Punjab, lower 12 paisa at Rs8.28 on 7m shares, Bank Alfalah, easy by four paisa at Rs13.84 on 6m shares and Soneri Bank, easy eight paisa at Rs5.80 also on 6m shares.
They were followed by D.G. Khan Cement, lower nine paisa at Rs25.93 on 6m shares, Nishat Power, off 99 paisa at Rs14.83 on 5m shares and TRG Pakistan, easy by two paisa at Rs2.46 on 4m shares.
FUTURE CONTRACTS: D.G. Khan Cement led the list of actives on this counter, steady by 13 paisa at Rs26.23 on 1.471m shares followed by its ruling contract, easy by six paisa at Rs25.95 on 1.388m shares and National Bank, off 70 paisa at Rs49.50 on 0.842m shares.
Engro Corporation followed them, firm by 11 paisa at Rs101.19 on 0.742m shares and Arif Habib Corporation, up 23 paisa at 30.35 on 0.739m shares.
DEFAULTER COMPANIES: Dost Steels came in for profit-selling at the higher levels and ended lower by seven paisa at Rs2.13 on 52,568 shares followed by Brothers Textiles, steady by one paisa at Rs0.70 on 22,505 shares, Genertech Power, unchanged at Rs0.55 on 19,689 shares and Kohinoor Industries, higher by 26 paisa at Rs2.26 on 26,143 shares.
Sardar Chemicals and Ansari Sugar were traded unchanged for the former and Re1 lower for the latter.

Small investors flock back to stock market
KARACHI: Riding on the wave of rallies in regional markets, the Pakistan equities have also gained 11.1 per cent since the start of the current calendar year.
A big contribution has come from a quick rise of five per cent in equity values in the last few trading sessions.
The price spurt is supported by the return of small investors, represented by a surge in daily traded volumes.
Compared to last quarter average daily volumes of 59.7 million shares, valued at Rs2.8 billion or $32.2 million, the average daily volumes at the KSE in the current quarter has mounted to 119 million shares, worth Rs3.7 billion or $41 million.
The volumes though far lower than average daily trading in 300 million shares of the value of Rs24.8 billion or $417.5 million, witnessed in the golden era of 2003-07, they nonetheless signify a return of the small investor to the market. The confidence
appears also to be souring in purchasing shares on borrowed money. The curse of the ‘badla’ is buried in memory.

Mohammad Sohail, CEO at brokerage Topline Securities, points out that leveraged positions in Margin Trading System (MTS) — the replacement of the ‘badla’ — and ‘futures’ have also increased.
He affirms that “those are not at alarming levels so far and far lower than what they used to be in the past.”
A booming stock market and recent margin relaxation and allowing individuals to lend in MTS by the regulators, have all helped ‘open interest’ in the MTS to climb.
On Tuesday, Feb 22, the amount stood tall at Rs877 million. “This level of around Rs900 million is seen for the first time since the new leveraged product was introduced by the regulators in March 2011,” says Sohail.
He asserts that the MTS rate, however, is not on the rise and the average gross rate settled at 16.7 per cent on Tuesday.
“This gives comfort that the market is not over leveraged and there is enough supply of funds in the MTS market,” says Sohail and recalls that years ago when the Karachi bourse was considered to be one of the most actively traded market in Asia, the ‘badla’ financing (sometime called CFS and COT) averaged Rs33 billion with average rate of 15 per cent between 2005-07.
Compared to that, open interest in the current month (Feb) contracts amounted to Rs1.4billion.
Furqan Punjani at BMA capital attributed the share price rise since January this year to much needed announcement of amending Capital Gains Tax (CGT) filings rules addressing source of funding clause.
The share in trading activity of the ‘individual’ class of investors, post the above announcement (on Jan 15, 2012) climbed to 60 per cent from low of 40 per cent in June 2011. “This has also put to rest the speculation that government may not be able to honour its commitment,” says Punjani.
He also mentions that the participation by ‘individuals’ has generated massive activity in low priced stocks.
The analyst pointed out that though the activity seemed to be driven by speculation, the turnaround stories primarily in cement companies and investment gains in holding companies were the fundamental factors behind current rally.
According to the analyst, the small individual investor was the worst hit from imposition of CGT, which was why his participation in daily trading activity had sunk to 40 per cent before the former Finance Minister announced the needed changes in CGT.
Earlier in Jan of 2010, the individual share in trading was 57 per cent, which set a spell of the driest season at local bourse with volumes dipping to their lowest in 12 years; average daily turnover fell to 95 million shares ($44 million) in FY11, even lower than 106 million shares ($57 million) witnessed in FY09, when trading activity had been brought to a halt for over three months, by closing the exit door, through the infamous ‘floor’.
Many market participants said that though the investors were returning in droves to trade in shares since the announcement by the former finance minister, the market still anxiously awaited the SRO by the Federal Board of Revenue.
“It is being considered of vital importance in the settlement of the CGT issue for good,” said one.

Ø      OGDC posts profit at Rs41.6bn

Mohammed Saleem Mansoori