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Tuesday, 29 May 2012

STOCK MARKET UPDATE: 30.05.2012


STOCK:


Karachi Stocks Down 14.69 Points:
KARACHI, May 30: The KSE-100 index was at 14057.16, down 14.69 points. (today 11.20am)

May 30, 2012
5 TOP GAINERS  &  LOOSERS:

Unilever Pak
Rs 139.05
Indus Motor Co
Rs (8.66)
Nestle Pakistan
Rs 102.14
Philip Morris
Rs (7.93)
Unilever Food
Rs 47.50
Colgate Palmolive
Rs (5.48)
Wyth Pak Limited
Rs 28.62
Linde Pak
Rs (2.83)
Mithchells Fruit
Rs 14.33
Hinopak Motor
Rs (2.59)

Karachi Stocks add 40 points to overnight gains
KARACHI, May 29: Bulls again ruled the roost at the Karachi Stock Exchange on Tuesday, where shares seemed to be in demand, ahead of the budget.
Extending the earlier day’s trend, the stocks started on a firm ground and moved up to add more than 100 points to the KSE-100 index before retreating at the end of the day to a gain of 40.34 points, settling at 14,071.85 points.
Market experts said that the redeeming factor was investors’ gradual interest in big-cap stocks.
Dealers said that the stocks were captivating the interests of institutions and foreign investors.
The figures released by the National Clearing Company of Pakistan in the evening showed overseas investors offloading stock holdings worth of $7.87 million on Tuesday.
Local companies and mutual funds also opted out of shares. However, all of that was absorbed by the banks, which mopped up equity worth $9.51 million.
Among the regular commentators, Samar Iqbal, equity dealer at Topline Securities, said that the market had failed to sustain the rally after pressure on Pakistani currency. Investors preferred to book gains at upper level after realising that local currency was posting record lows against the US dollar.
Hasnain Asghar Ali at Invisor Securities stated that in the absence of follow-up support and investors lining up to sell, the rally could not sustain. Accumulation in selective stocks, mainly from energy and fertiliser sector averted the fall. The bourse had to succumb to the technical call, thereby disallowing the high, attained during early trade to sustain.
While the market participants awaiting the federal budget expected to carry equity market revival ingredients, including amnesty and change in CGT collection authority, the economic and financial grievances along with fast depleting value of local currency besides inviting speculators interest from other investment instruments added to the nervousness, thus depicting cautious stance, said the analyst. Some of the budgetary leaks to which investors believed in varying degrees included:
Expected shortfall of Rs2 to Rs4 billion in proposed revenue collection target of Rs2,338 billion for the next fiscal 2012-13.

The government is likely to reduce turnover tax from one per cent to 0.5 per cent in budget to provide relief to business community. The projection of 6.85 per cent fiscal deficit for the outgoing fiscal year likely to stay higher following the inability of the provinces to generate a surplus of Rs124 billion estimated in the budget and the shortfall of 71 per cent in foreign inflows from the budgetary estimates of $4.5 billion for current fiscal.
The KSE-30 index added only 4.15 points to close at 12,243.28 points. Among the total 384 actives, 177 ended in the green territory, 147 in red and 60 stayed unchanged. Turnover dropped by 21 million shares to 160 million shares from 181 million shares on Monday.
Traded value, however, increased by a minor Rs110 million to Rs5.835 billion and market capitalisation rose by Rs10 billion to Rs3.601 trillion. Among lead gainers were UniLever Pak up by Rs139.05 to Rs7,239.18 and Nestle Pakistan higher by Rs102.14 to Rs3,928.57.
The major declining scrips were Indus Motor Company down by Rs8.66 to Rs282.34 and Philip Morris Pak giving up Rs7.93 to Rs153.12.On the active list, Jah Sidd Co added 11 paisa to Rs16.25 on 12m shares. BankIslami Pakistan pushed ahead by 43 paisa to Rs12.04 on 9m shares, D.G. Khan Cement lost 76 paisa to Rs43.14 on 9m shares, Engro Corporation continued to climb with gain of another Rs3.95 to Rs113.70 on 8m shares. Lotte PakPTA edged higher by 9 paisa to Rs8.49 on 7m shares, Hub Power Company declined by 51 paisa to Rs40.49 on 7m shares, Fatima Fertiliser retreated by 7 paisa to Rs24.79 on 7m shares, NIB Bank added 14 paisa to Rs2.30 on 6m shares, National Bank shed Rs1.11 to Rs46.15 on 6m shares and Kot Addu Power gained Rs1.65 to Rs45.45 on 5m shares.
Pakistani stocks rise despite investors opting for profits
KARACHI: Pakistan stocks closed higher on Tuesday but gains were limited as investors chose to take profits, concerned about the rupee hitting a record low against the dollar, dealers said.
The Karachi Stock Exchange (KSE) benchmark 100-share index rose 0.29 per cent, or 40.34 points, to 14,071.l85 points on volume of 120.87 million shares, compared to Monday’s close of 14,031.51.
The KSE hit a high of 14,168.49 points during the day.
“Investors preferred to book gains at upper levels after realising that the local currency is posting record lows,” said Samar Iqbal, a dealer at Topline Securities.
Facilitating shareholders’ voting at AGMs
KARACHI, May 29: The apex regulator, Securities and Exchange Commission of Pakistan (SECP) proposes to initiate the concept of e-voting, which envisages a change from the current voter presence in person or by proxy to vote at the Annual General Meetings (AGMs) of companies.
A communiqué by the SECP posted on the KSE-website on Tuesday stated that it was to facilitate the shareholders and benefit from automation in the capital market, that the introduction of e-voting was being considered.
In this context, a concept paper has been prepared by the Central Depository Company of Pakistan Limited (CDC).“The proposed e-voting would essentially be an internet based platform that will enable the shareholders to vote on resolutions proposed by companies without being physically present at the meeting,” the SECP explained.
The chief regulator has invited views/comments on the concept paper by June 11, 2012.
The concept paper lists the benefits of e-voting, which include: The implementation of e-voting system would make it possible to monitor the whole voting system in a timely manner; transparency and efficiency will be achieved from e-voting, record keeping, with respect to each voter will be very easy and accurate; results of e-voting will be available immediately after e-voting with 100 per cent accuracy.
As for shareholders, the need for their physical presence or proxy dependency will be substituted with the ease of voting from anywhere and the casting of invalid votes would be minimised.
The concept paper mentions that e-voting system has been developed and implemented worldwide, by various depositories, for achieving efficiency in the voting process involved in company AGMs.
“This process, while it may not completely replace the process of physical voting, does, however, provide another channel for shareholders to exercise their right.”
It results in the increase of overall percentage of voting due to this facility.
At the same time, this process adds a lot of efficiency and transparency in the overall voting process, the concept paper says.
The drawbacks in currently prevalent system, which the e-voting seeks to solve include: In the current voting system, shareholders are required to be present physically at the meeting place to exercise their voting rights.
Due to this limitation of current voting system, it becomes impossible for an investor to participate if he has invested in multiple securities and some of them conduct their AGMs at the same date.
Secondly, from the point of view of minority shareholders it is not always feasible to travel to meeting place, especially where investor is not the part of urban population or meeting place is out of his native city.
Due to this limitation, the current voting system has a low response of just around 10-15 per cent.
MOHAMMED SALEEM MANSOORI

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