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Wednesday, 21 March 2012

DAILY STOCK MARKET UPDATE: 22.03.2012


Stock



Karachi Stocks Down 18.05 Points:
KARACHI, Mar 21: At close of trading, the KSE-100 index was at 13285.28, down 18.05 points.
March 21, 2012
5 TOP GAINERS  &  LOOSERS


Unilever Foods

Rs 50.00

Rafhan Maize

Rs (138.72)

Wyeth Pakistan

Rs 12.24

Unilever Pakistan

Rs (116.78)

Mithchell’s Fruit

Rs 8.74

Linde Pakistan

Rs (4.49)

Tri-Pack Films

Rs 7.00

Packages

Rs (4.22)

Nestle Pakistan

Rs 5.89

Pakistan Tobacco

Rs (2.66)

 

Karachi Stocks-mixed trading


KARACHI, March 21: The share market on Wednesday turned mixed as investors again played on both sides of the fence indulging in alternate bouts of buying and selling but the underlying sentiment remained steady.
After early moving to session’s high of 13,399.39, the KSE 100-share index finally fell modestly lower by 10.21 points at 13,293.12 as compared to previous 13,303.33 points.
But its junior partner, the KSE 30-share index suffered a large decline of 109.94 points at 11,630.49 as its leading base shares came in for active selling and fell sharply lower.
The activity was, however, a bit cautious ahead of hearing of contempt case against the prime minister by the Supreme Court and investors remained confined to low-risk areas throughout the session.
The market appears to be in a consolidation phase as the benchmark came in for active selling after it crosses the level 13,300, analyst Ahsan Mehanti said, “rumours about the advent of the reformed Capital Gain Tax (CGT) by the reported date of April 1, keep investors in two minds and they play on both sides of the market.
The fact that the broader market performed well reflects that investors are adjusting positions on various counters according to their perceptions ahead of the pre-determined date.
But analyst Samar Iqbal thinks the reluctance of the benchmark to tread beyond 13,300-level inducts bears in the trading scene and they take profit.
Leading gainers were led by Unilever Foods and Wyeth Pakistan, up by Rs50.00 and Rs12.24, while top losers included Rafhan Maize and Unilever Pakistan, off by Rs138.72 and Rs116.78.
Traded volume rose to 266.068m shares from the previous 248m shares as gainers topped the losers by 159 to 137, with 91 shares holding onto the last levels.Bulk of the activity again remained on the low-priced counters under the lead of JS & Co, up 62 paisa at Rs18.58 on 30m shares followed by TRG Pakistan, steady by 45 paisa at Rs4.08 on 27m shares and JS Bank, firmer 16 paisa at Rs6.94 on 14m shares.
Other actives were led by NIB Bank, up 28 paisa at Rs2.69 on 11m shares, BankIslami Pakistan, off 57 paisa at Rs6.07 on 10m shares, Lafarge Pakistan, easy four paisa at Rs3.84 on 9m shares and WorldCall Telecom, firm by six paisa at Rs2.55 also on 9m shares.
They were followed by D.G. Khan Cement, higher by 18 paisa at Rs31.99 on 9m shares, Dewan Cement, lower 14 paisa at Rs4.40 on 7m shares and Bank of Punjab, up 22 paisa at Rs8.56 also on 7m shares.
FUTURE CONTRACTS: The active list was led by D.G. Khan Cement, firm by eight paisa at Rs32.06 on 2.388m shares followed by National Bank, easy 24 paisa at Rs40.53 on 1.728m shares and Engro Corporation, steady by 26 paisa at Rs106.92 on 1.198m shares.
They were followed by Arif Habib Corporation, easy by 35 paisa at Rs30.01 on 0.982m shares and Attock Refinery, up Rs1.08 at Rs128.23 on 0.874m shares.
DEFAULTER COMPANIES: The active list was led by Dost Steels, up by 58 paisa on a large volume of 1.428m shares followed by Quice Foods, higher by 96 paisa at Rs5.19 on 0.320m shares and Kohinoor Industries, easy by seven paisa at Rs1.70 on 0.119m shares.
They were followed by Brothers Textiles, higher by 22 paisa at Rs1.49 on 83,923 shares, Genertech Power, steady seven paisa at Rs0.98 on 50,109 shares and Kohinoor Power, higher by 19 paisa at Rs2.65 on 21,862 shares.
DIVIDEND: Pakistan Tobacco, final 10 per cent.

Regulators speed up delisting of companies

KARACHI, March 21: The capital market regulators have proceeded to speed up the ‘delisting’ of defaulter companies and understandably so.
Shares have rallied at the stock market, carrying the KSE-100 index considerably above the 13,000 level. And everyone who has anything to do with the stocks knows that beyond the 9,000 points, the market has been supported by what are referred to as ‘second and third-tier stocks’.
A long list can be drawn of such stocks that have awakened from years of hibernation and climbed to dizzy heights.
Almost two dozen companies have seen their stocks jump between 50 to 450 per cent in the last two months — from their previously frozen values. Is that all value-addition genuine or are unsuspecting small investors being trapped?
Retail investors with small means are picking up low priced stocks of companies that are either dead or dying. All that the regulators seem to have thought of is to glance deeper into such companies that come handy and go along with delisting or suspension.
Compared to just 7 companies last year, a total of 47 companies have already been ‘delisted’ during the current year, including 22 companies in the month of March alone.
Even so, many market watchers believe that the action of ‘suspension and delisting’ may have come too late.
The regulators have mentioned that suspension and delisting have been ‘in the interest of trade and public’ and to warn new shareholders of the pitfalls. But how about the small shareholders already stuck up with shares that they hold in such companies. And many thousand more who may have only recently bought the ‘second and third tier’ worthless stocks. When the tables are finally turned, it would surely be those unlucky retail investors who would be under them. Should the regulators have acted earlier and put up lifeguards to keep such innocent small shareholders away? May be, but it appears that the rule of ‘caveat emptor’ (buyer beware) prevails.On Wednesday, the KSE issued yet another notice to suspend trading in a dozen companies. The reason for the suspension was noted as “failure to company with the instruction of the exchange to fulfill the requirements of Listing Regulation regarding the induction of shares of companies into the Central Depository System (CDS) within 90 days ie up to March 21. The companies included: Sardar Chemical Industries; Climax Engineering Company; Shakerganj Foods; Data Agro; Gauhar Engineering; Fatima Enterprises; Fateh Industries; Fateh Sports Wear; Globe Textile Mills (OE); Ishtiaq Textile Mills; Noor Silk Mills and Suhail Jute Mills.
The KSE stated that trading in shares of those would be suspended wef March 22.
The bourse said that the sponsors/majority shareholders of the concerned companies were directed to provide to all concerned shareholders an option for selling their shares to them at a price fixed by the Exchange in accordance with Regulations, followed by delisting of the companies.
The KSE issued a threat that made some people chuckle: “In case of failure of the sponsors/majority shareholders of the companies to comply with the compulsory buy back direction within 30 days ie up to April 20, the Exchange will proceed to delist such companies under the Listing Regulations” and the bourse also issued a warning that seemed to sound almost hollow: “The cases of the companies will also be forwarded to the SECP for initiating further action under the Companies Ordinance,
1984 against the companies/management as may be deemed appropriate.”

 MOHAMMED SALEEM MANSOORI

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