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Thursday, 14 June 2012

STOCK MARKET UPDATE: 15.06.2012

STOCK:


Karachi Stocks Up 11.95 Points:
KARACHI, June 15: The KSE-100 index was at 13668.15, up 11.95 points.(today 11.00am)
June 14, 2012
5 TOP GAINERS  &  LOOSERS:

Rafhan Maize
Rs 123.38
Nestle Pak
Rs (36.41)
Colgate Palmolive
Rs 24.99
Mehmood Tex
Rs (2.26)
Wyeth Pak
Rs 18.69
Shell Pak
Rs (1.64)
Philip Morris
Rs 7.77
Exide
Rs (1.64)
Clariant Pak
Rs 7.65
Searle Pak
Rs (1.18)

 KSE-100 index Up 287 points
ISLAMABAD: Pakistan’s main stock market rose on Thursday on greater investor confidence after positive comments from the United States concerning aid to Pakistan, analysts said.
The Karachi Stock Exchange benchmark 100-share index rose 2.15 per cent, or 287.31 points, to close at 13,656.2 points on volume of 91.293 million shares.
“There was negative mood in the market over the last few days so today, after some positive news … it reacted sharply,” said Atif Zafar, a research analyst at JS Global, a financial services company.
US Defense Secretary Leon Panetta said on Wednesday that Washington should examine setting conditions for aid to Pakistan but not cutting it off, as he disclosed that Islamabad’s closure of supply routes to the Afghan war was costing American taxpayers millions of dollars a month.
Asked during a Senate budget hearing whether he would recommend halting aid to Pakistan, Panetta said: “I’d be very careful about just shutting it down.”
Stocks post strong recovery despite huge foreign sale
KARACHI, June 14: The Karachi Stock market went full circle on Thursday, to turn its direction steeply to North.
The benchmark KSE-100 index shot up by 287.31 points or by 2.15 per cent to settle at a high of 13,656.20 points.
The sudden rush of retail and institutional investors in the market pushed the volume of business to 114 million shares for the day, from the depressing 78 million shares a day earlier.
Traded value rose to Rs4.303 billion, from Rs3.465 billion and a cool sum of Rs71 billion was added to market capitalisation, which climbed to Rs3.486 trillion, from Rs3.415 trillion the day earlier.
All through the day, brokers and traders attributed the rise to a rejuvenation of foreign investor interest in the market.
However, figures released by the National Clearing Company of Pakistan, revealed huge net sale of $7.38 million on Thursday by the foreign fund managers.
That appeared quite in line with the withdrawal of foreigners from regional markets. With the global equities sinking, some of the sanguine market participants wondered at the scramble to pick up stocks at the KSE.
“I think, all that euphoria was due to the statement by US Defence Secretary Leon Panetta on Wednesday in the US Senate that though the closure of supply routes to the Afghanistan was costing American taxpayers millions of dollars a month, he still would not recommend cutting of aid to Pakistan,” affirmed a veteran stock broker.
Among local participants, mutual funds picked up shares of the value of $6.78 million, but other than that, there was no unusual institutional activity. Does that mean that retail investors who were waiting on the sidelines had rushed in to pick up shares all across the board? If it were so, a stock broker said that they may have ‘over-reacted’ to just one small positive piece of news.
For the market, nothing could have been better, as all of the losses of last week and the two previous sessions this week were recouped.
It was, however, to be seen if the bulls manage to keep their hold in the market tomorrow, the last day of the week’s trading.
Equity Dealer, Samar Iqbal at Topline Securities, observed that local institutional buying in blue chip stocks helped index to post a strong recovery.
Investors were also optimistic after news report that US may resume Pakistan aid.
Ahsan Mehanti at Arif Habib Corporation thought that the World Bank forecast on firm recovery in Pakistan’s Economic growth and EU trade concessions on Pakistan’s exports played a catalyst role in bullish sentiments in stocks across the board. The concerns over falling global and commodities markets were ignored.
The highest increase of Rs123.38 to Rs3250.09 was noted in Rafhan Maize Products and Colgate Palmolive followed with a gain of Rs24.99 to Rs974.00
On the falling side, Nestle Pakistan decreased by Rs36.41 to Rs4016.28 and Mehmood Textile slid by Rs2.26 to Rs102.
On the active list, PTCL stood out as the volume leader with a turnover of 16m shares gaining 76 paisa to Rs14.60. It was followed by the two bigger cement shares, which had taken beating
over the last few session. DG Khan Cement surged by Rs1.88 to Rs41.603 on 8m shares. Lucky Cement shot up by Rs2.33 to Rs118.05 on 7m shares. Jah. Sidd.Co. edged higher by 24 paisa to Rs14.01 on 7m shares. Engro
Corporation climbed by Rs4.47 to Rs106.62 on 5m shares, Hub Power Company was up by 71 paisa to Rs41.48 on 5m shares, Bank Al-Falah added 67 paisa to Rs17.07 on 5m shares; Summit Bank gained 28 paisa to Rs3.41 on 4m shares, Fauji Fertiliser
Bin Qasim turned stronger by Rs1.12 to Rs40.12 on 3m shares and Engro Foods added Rs2.74 to Rs64.27 on 3m shares.


ANNOUCEMENTS/COMPANY NEWS:
1)JS Bank joins queue to buy HSBC: KARACHI, June 14: JS Bank has entered as a third contender aiming to buy Hong Kong and Shanghai Bank (HSBC) Pakistan operation, after it succeeded in getting permission from the State Bank to carry out due diligence, banking sources said on Thursday.
Earlier, KASB Finance and Isbank of Turkey were busy in due diligence of the HSBC.
HSBC decided in April to sell out its Pakistan operation in the wake of shrinking foreign interest in the country.
However, the largest bank of Turkey entered for the first time in Pakistan’s financial sector, giving support to the market that foreign banks were not leaving in absolute term. The JS Bank is relatively new bank like KASB Finance but has strong financial background.
However, market experts were not able to comment over this possible deal as they said any one can buy the HSBC.
A leading banker said the Turkey’s Isbank has strong financial backing and could offer a better price.

MOHAMMED SALEEM MANSOORI

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