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Tuesday, 19 June 2012

STOCK MARKET UPDATE: 20.06.2012


STOCK:


Karachi Stocks Down 71.14 Points:

KARACHI, June 19: At close of trading, the KSE-100 index was at 13682.99, down 71.14 points.
June 19, 2012
5 TOP GAINERS  &  LOOSERS:

Wyeth Pak Limit
Rs 8.44
Rafhan Maize
Rs (138.81)
Mari Gas Company
Rs 2.92
Colgate Palmolive
Rs (47.00)
Altas Battery Ltd
Rs 2.17
Nestle Pakistan
Rs (37.21)
Linde Pakistan
Rs 2.10
Siemens Pakistan
Rs (26.27)
ICI Pak
Rs 2.08
Mithchells Fruit
Rs (12.96)

Karachi Stocks falter on political uncertainty
KARACHI, June 19: Stocks faded on Tuesday with the KSE-100 index taking a dip of 71.14 points to close at 13,682.99 points. The stock prices moved all the way south, from the opening of trading and the index touched the day’s maximum loss of 123 points.
The one overwhelming concern of investors was the uncertainty over the outcome of Supreme Court judgment on Speaker’s ruling in the case against the prime minister.
Investors preferred to remain out of harms way in case events took an ugly turn to further spoil the political atmosphere. The redeeming feature for the day was perhaps the halt in foreign selling and a small net buy of $0.35 million worth equity recorded on Tuesday.
Besides the judicial matters, the market witnessed a dull session on news regarding diversion of gas from captive power plants, said Mohammad Rizwan, at Topline Securities. He also observed that uncertainly on foreign flows also kept investors sidelined.
Ahsan Mehanti at Arif Habib Corp said that the stocks closed lower amid thin trade as they watched out for the apex court’s ruling that day.
Institutional profit-taking continued from early session on macroeconomics concerns about rising current account deficit despite hopes of improvement in Pak-US ties on progress over resolution of the NATO supply route issue. Lower global commodities and limited foreign interest played a catalyst role in bearish sentiments at KSE, he said.
The news flow was not encouraging either.
Analyst Farhan Mahmood commented that the cabinet committee on energy had recommended disconnection of 400mmcfd gas currently being provided to captive power plants to reduce load-shedding on interim basis. After gas suspension industry would rely on furnace oil as a backup fuel, which was thought to result in higher cost of generation.
Analysts believe the decision bodes ill for several sectors including cement, textile, sugar and chemical sector unless those sectors were able to pass on the impact to consumers.
Other negatives included reports of Pakistan’s current account deficit rising to $3.770 billion in the first 11 months (July-May) of the outgoing fiscal year. It had raised problems for the economy which already was under pressure due to falling foreign exchange reserves and rising fiscal deficit.
And finally the ugly scenes of violent protests all across Punjab over the power outages and an absence of the government plan to tackle the problem.
The market capitalisation based KSE-30 index lost 44.70 points to close at 11,852.50 points. In a total of 333 active issues for the day, 181 ended in the red territory, 77 in green and 75 stocks retained their previous places.
The turnover at 76 million shares for the day was almost at the same level as on Monday’s 80 million shares as retail investors who form the bulk of volume remained cautious.
Few second and third tier stocks could make to the heavily traded list. Trading value, however, decreased to Rs2.548 billion, from Rs3.053 billion.
The market capitalisation slipped by Rs18 billion to Rs3.493 trillion, from Rs3.511 trillion.
Rafhan Maize Product saw the largest fall of Rs138.81 to Rs2,861.19. Advancing issues were led by Wyeth Pakistan up by Rs8.44 to Rs859.
On the ten thickly traded stocks, Jah Sidd Co again took the top slot with 10m shares, up by six paisa to Rs13.46. KESC saw dealings in 7m shares, down 31 paisa to Rs2.76 and Nishat Chunian Power shed five paisa to Rs15.15 on 6m shares.
D.G. Khan Cement plunged 88 paisa to Rs40.34 on 5m shares, Engro Foods lower by 96 paisa to Rs66.96, Engro Corporation recovered 69 paisa to Rs104.28 on 4m shares and Lotte PakPTA shed 35 paisa to Rs7.35 on 4m shares.
Lucky Cement dipped by Rs2.42 to Rs114.69 on 3m shares, Azgard Nine lost 20 paisa to Rs6.52 on 3m shares and Fauji Fertiliser Bin Qasim declined by 70 paisa to Rs40.93 on 2m shares.

Pakistani stocks down following Gilani’s disqualification
ISLAMABAD: Pakistan’s main stock market closed down on Tuesday after the country’s top court declared Prime Minister Yousuf Raza Gilani ineligible for office.
The Karachi Stock Exchange benchmark 100-share index fell 0.52 per cent, or 71.14 points, to close at 13,682.99 points on volume of 60.75 million shares, compared to 13,754.13 on Monday.
“Investors were cautious ahead of the judgment today. Now that the prime minister has been disqualified, and the Supreme Court said that he ceased to hold office on April 26, a number of financial decisions such as the budget could come under scrutiny,” said Atif Zafar, a research analyst at JS Global financial services company.
“I don’t think it will be a big problem but until it is sorted out, investors will remain cautious,” he said.
The court ruling was announced about 45 minutes before the market closed.
In April, the Supreme Court found Gilani guilty of contempt of court for refusing to reopen corruption cases against the president. Fawad Chaudhry, a senior aide to Gilani, said only parliament could dismiss the prime minister.
Rupee firms:
The Pakistani rupee firmed to close at 93.88/94 against the dollar, compared to 93.97/94.04 on Monday.
Overnight rates in the money market remained unchanged at 11.90 per cent.
MOHAMMED SALEEM MANSOORI

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