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Wednesday, 18 July 2012

STOCK MARKET UPDATE: 19.07.2012


STOCK:

Karachi Stocks Down 1.52Points:
KARACHI, July 19: The KSE-100 index was at 14,595.39 Down 1.52 points.(today 11.18 am)

July 18, 2012
5 TOP GAINERS  &  LOOSERS:

UniLever Pak
Rs 124.25
Akzo Nobel Pak
Rs (5.61)
Unilever Food
Rs 88.48
Philip Morrisve
Rs (4.49)
Millat Tractors
Rs 24.49
J.D.W. Sugar
Rs (4.02)
Mitchells Fruit
Rs 14.01
Clover Pakistan
Rs (1.32)
Nestle Pak
Rs 9.66
Pak Int. Cont
Rs (1.13)
Karachi Stocks Up 151 points on foreign buying
KARACHI, July 18: Stocks accelerated the gaining momentum on Wednesday with KSE-100 index up by 151.31 points or 1.05 per cent.
The index closed at 14,596.59 points, slightly short of the 14,600 level, touched 10 weeks ago.
The rally was fuelled by foreign investors, who bought stocks worth $5.36 million, though a bigger portion of it was off-market deal. Local institutional and individual investors also seized the opportunity to pick up stocks of companies about to disclose financial figures for the quarter and more importantly those expected to disburse good dividends.
The declarations of results early in the week, those of Fauji Fertiliser Bin Qasim and Engro Foods had dampened spirits, but the results and payout by Hubco on Wednesday was warmly greeted by the investors, who looked forward to other companies declaring healthy dividends.
The small investors were seen to be making cautious entry, represented by the heavier volumes and ‘upper circuits’ in several small cap stocks.
Hasnain Asghar Ali, COO at Escorts Capital, said that the corporate earnings sensation kept the momentum positive thus allowing the participants to dispel worries on political front mainly linked to the high-profile court hearings and concerns on economic and financial issues.
He stated that the frontline banking stocks continued to invite renewed buying on hopes of healthy earnings. The heavyweights from both banking and exploration sectors supported the index that maintained triple digit gains for most part of the session, while investment companies on likelihood of healthy earnings on portfolio gains led the turnover and several touched the ‘upper lock’.
Better then expected earnings and payout by Hubco invited fresh buying as evident from gains and healthy turnover, UBL however mainly on low payout stayed in negative zone on post result sell-off.
As results continue to pour in the earnings season, stock specific activities would continue to provide a wider option for the participants.
Ahsan Mehanti at Arif Habib Corp observed that record earnings announcement by UBL and renewed foreign interest in blue
chip stocks played a catalyst role in bullish sentiments in stocks.

Across the board increase was seen in spite of concerns over the $4.51bn current account deficit and downgrade, last week, of blue chip banks deposit ratings by Moody’s.
“Continuous net foreign buying coupled with excellent corporate results by UBL and Hubco helped market to close near 14,600 level,” commented Samar Iqbal, equity dealer at Topline Securities.
The dealer said that volumes also increased mainly led by JSCL and DGKC. The heavyweight oil and gas exploration scrip, OGDC contributed 52 points to the index on Wednesday, as its stock price rose by Rs2.70.
The KSE-30 index gained 130.64 points to 12,665.22 points. Turnover rose by 65 per cent to 168 million shares on Wednesday, from 105 million shares traded the earlier day. Trading value rose by Rs1.427 billion to Rs5.444 billion, from Rs4.018 billion and market capitalisation jumped by Rs39 billion to Rs3.725 trillion on Wednesday, from Rs3.685 trillion on Tuesday.
Among the 364 active scrips, 198 were gainers, 83 losers and 83 ended at their last values.
On the list of 10 volume leaders, Jah Sidd Co topped with 18m shares, limit up by Re1 to Rs15.66. DG Khan, as usual, showed huge volume of 12m shares, up by 76 paisa to Rs45.68.
Azgard Nine rose 53 paisa to Rs7.22 on 12m shares, Hub Power Company added 17 paisa to Rs43.80 on 7m shares, Fauji Cement scored gains of 24 paisa to Rs6.09 on 7m shares, PTCL rose 35 paisa to Rs15.13 on 7m shares and JS Investments also closed at the ‘upper circuit’, with a rupee up to Rs9.41 on 6m shares.
Engro Foods showed sharp spurt of Rs1.63 to Rs69.29 on 6m shares, the third active cement stock-Lafarge Pakistan rose 22 paisa to Rs4.89 on 5m shares and the textile sector leader, Nishat Mills edged higher by 9 paisa to Rs52.61 on 5m shares.


Company news:
1) Hubco profit grows by 51pc: KARACHI: The Hub Power Company recorded profit after tax (PAT) at Rs8,190 million, translating into earning per share (eps) at Rs7.08, for the year ended June 30, showing stellar growth of 51 per cent over the eps at Rs4.69 the previous year.
The Board announced the results on Wednesday, declaring final cash dividend at Rs3 per share for the shareholders, which raises the total annual payout to Rs6 per share.
For 4QFY12, the company reported a big jump of 183 per cent in PAT at Rs3,228 million (eps: Rs2.79).
“Higher payout despite augmented levels of circular debt re-affirms company’s ability to maintain high distribution,” says Nurali Barkatali, analyst at BMA Research.
Nauman Khan, analyst at Topline Securities commented that the earnings were “slightly above market consensus, while the payout was in line with market expectations.”
He believed that the earnings were propelled by one-time impact of Narowal project commissioning. Other factors in earning growth included depreciation of 9 per cent in Rupee value and efficiency gains.
Naveed Tehsin at JS Global also said that the improved earning was primarily attributable to revised Narowal tariff, Rupee depreciation and up tick in Hubco’s tariff profile.
The top line of Hubco grew by 42 per cent over the earlier year to Rs175 billion, primarily due to pass through of higher furnace oil prices and commissioning of Narowal project.
The company however, was able to absorb the impact of 109 per cent increase in financial charges, which amounted to Rs3,382 million, the heavy rise attributable to financing facility associated with the Narowal project and the circular debt issue. The share in Hubco rose 17 paisa on Wednesday with closing seen at Rs43.80.


MOHAMMED SALEEM MANSOORI

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