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Tuesday, 17 July 2012

STOCK MARKET UPDATE:18.07.2012

STOCK:


Karachi Stocks Up 59.06 Points:
KARACHI, July 17: At the close of trading, the KSE-100 index was at 14443.64, up 59.06 points.

July 17, 2012
5 TOP GAINERS  &  LOOSERS:

Unilever Pak
Rs 34.52
Unilever Food
Rs (114.72)
Bata Pak
Rs 24.27
Colgate Palmolive
Rs (59.70)
Clariant Pak
Rs 9.57
National Foods
Rs (26.66)
Pak Oilfields
Rs 5.46
Akzo Nobel
Rs (5.91)
Murree Brewery
Rs 5.24
Ismail Industries
Rs (3.27)
Karachi Stocks up 60 points on hopes of higher payouts
KARACHI, July 17: Stocks extended the rising streak on Tuesday with the KSE-100 index gaining 60.70 points to close at 14,445.28 points.
The trigger was the investors’ expectations of healthy results and payout from companies about to unveil results for the second quarter.
Investors were looking forward to hefty payout from Hubco to mitigate the effect of earlier depressing results posted by the Fauji Fertiliser Bin Qasim.
Stock broker Siddiq Dalal said that he did not expect any upheaval in political stability. Investors were buying in selective scrips on the fundamentally sound sectors, particularly the cement and energy.
However, he ruled out across the board value rise. Volumes were expected to remain low as the trading timings were reduced during the holy month of Ramazan.
Dalal believed that improvement in law and order situation, lower interest rates, political stability and the strength of the rupee against the dollar were the factors that could help induce activity in the stock market going forward. But many analysts thought that 14,500 points could prove a strong resistance for the bulls.
The encouraging fact was resumption of foreign portfolio inflow. On Tuesday, foreign investors bought shares worth net $1.65 million. Banks kept building portfolio with buy of stocks valued at $1.61 million. Individuals, however, went in for profit-taking by the sale of $2.06 million worth stocks.
Ahsan Mehanti at Arif Habib Corp commented that activity remained thin as investors awaited Supreme Court reaction on NRO judgment implementation next week.
Institutional support was seen in blue chip stocks in oil, banking and cement sectors ahead of release of US Coalition Support Fund of $1.5 billion despite concerns for security situation in the city.
Hasnain Asghar Ali, COO at Escorts Capital, said that in terms of high volume, D.G. Khan Cement was joined by various mid-tier and frontline banking stocks mainly on earnings outlook for the second quarter.
Overall turnover improved as investment companies and low prices stocks came in for trading. Fertiliser sector witnessed stock swapping where the companies likely to show lower earnings due to gas shortfalls faced institutional selling while growth stocks saw fresh inflow of funds, thus keeping the equation balanced. The presence of prospective participants on the sidelines however continued to keep the chances of improved activity on both value and volumes alive.
However, until things clear out selective and conservative approach was recommended as the post result sell-off has been prominent in the current result season.
Samar Iqbal, equity dealer at Topline Securities, stated that with the commencement of the result season, investors started taking position in anticipation of healthy earnings and handsome payouts. Profit-taking was seen in Engro Foods after its half yearly earnings announcement.
The KSE-30 index rose by 89.34 points to 12,534.58 points. Among the 371 active stocks on Tuesday, 166 closed firm, 106 were easy and 99 remained unchanged.
Turnover improved to 105 million shares of the trading value of Rs4.018 billion, up from 74 million shares valued at Rs2.922 billion. Market capitalisation saw addition of Rs14 billion to Rs3.685 trillion, from Rs3.671 trillion.
On the active list, Jah Sidd Co with a turnover of 13m shares, up by 63 to Rs14.66, displaced the D.G. Khan Cement which stepped down to the second place among the top 10 volume leaders.
DGK Cement with turnover of 13m shares rose by 28 paisa to Rs44.92. Lotte PakPTA climbed 39 paisa to Rs7.56 on 9m shares, Engro Foods on 8m shares, plunged by Rs2.16 to Rs67.66 on earnings announcement, the company skipped payout with the six months earning per share at Rs1.35.
Lucky Cement gained Rs1.71 to Rs128.34 on 4m shares, Askari Bank added 66 paisa to Rs15.00 on 4m shares, NBP climbed 44 paisa to Rs45.42 on 3m shares, NIB Bank edged higher by 2 paisa to Rs2.40 on 3m shares, UBL recorded good gains of Rs1.73 to Rs88.89 on 2m shares and Lafarge Pakistan, the third active stock on the cement sector, added 6 paisa to Rs4.67 on 2m shares.


Moody’s downgrades Pakistan’s top five banks
LIMASSOL:  Moody’s Investors Service on Tuesday, downgraded the local-currency deposit ratings of the top five Pakistani banks by one notch to B3, with negative outlook, from B2, and lowered their standalone credit assessments to caa1 from b3.
The affected banks are Allied Bank Limited, Habib Bank Ltd, Muslim Commercial Bank Limited, National Bank of Pakistan and United Bank Ltd.
Moody’s also wngraded the foreign-currency deposit ratings of the five banks by two notches to Caa2, from B3, to reflect the lowering of the foreign-currency deposit ceiling in Pakistan, which is the highest rating that can be assigned to a foreign-currency deposit obligation of a domestic bank.
The short-term ratings have been affirmed.
The full list of affected ratings can be found at in this press release.
These actions follow the downgrade of Pakistan’s government bond rating to Call, with negative outlook,, from B3, on 13 July 2012, and reflect the significant linkages between the credit profiles of Pakistani banks and sovereign credit risk.
SECP wants certified market players
ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) on Tuesday directed the country’s three stock exchanges to introduce certification programmes, for the growth of capital markets and greater investor participation, for market players to further enhance their knowledge and to make trade practices more ethical and responsible.“
Currently anybody with enough cash to buy a seat in the stock market can become a broker and anybody whose willing to do the job can be a broker’s agent — but these people are entrusted with life savings of the general public,” said Muhammad Ali, Chairman of SECP.
The Institute of Capital Markets (ICM) is currently conducting a certification programme, which is expected to be expanded soon. However, it is optional for brokers and dealers but the SECP intends on making the programme mandatory for all market players in order to conduct trade transactions for investors.
“We plan to make this requirement mandatory soon — it will be done eventually and the commission is in process of formulating regulations in this regard,” the chairman SECP said.
The ICM is also working on different certification programmes and training sessions for brokers and dealers, depending on their years of experience in the market.
“The fresh entrants in the markets will be taught about the systems and regulations whereas senior brokers need not be taught about the stock market but they need to be educated about compliances related to ethics, and other responsibilities of this trade,” the SECP official told media.
SECP said a key reason for limited investor participation in the stock market was due to lack of trust and such up-gradation of human resource programmes may bridge the gap.
“The other main reason for the low public participation by general public in the stock exchanges is lack of knowledge,” Ali said adding that the SECP along with the brokers and authorities of the exchanges were working on various programmes to develop investor education.
The majority of the CDC account holders are in Karachi 140,000 followed by 51,000 CDC account holders in Lahore, 25,000 each in Rawalpindi/ Islamabad and Faisalabad has 6,000 stock market investors.



MOHAMMED SALEEM MANSOORI



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