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Thursday, 30 August 2012

STOCK MARKET UPDATE: 31.08.2012


STOCK:
Karachi Stocks  Up 101.32 Points:
KARACHI, Aug 30: At the close of trading, the KSE-100 index was at 15252.63, up 101.32 points.
August 30, 2012
5 TOP GAINERS  &  LOOSERS:

Rafhan Maize
Rs 92.99
Wyeth Pakistan
Rs (50.00)
Bata Pakistan
Rs 50.38
ZIL Ltd
Rs (5.27)
National Refinery
Rs 11.82
Sitara Chemical
Rs (4.02)
Indus Dyeing
Rs 10.19
Service Industries
Rs (3.24)
Island Textile
Rs 10.19
Javedan Corporation
Rs (2.30)

Demutualised KSE elects chairman
KARACHI, Aug 30: The first meeting of the newly-constituted Board of demutualised Karachi Stock Exchange Limited was held on Thursday at which Muneer Kamal was re-elected chairman of the board.
A press release issued by the KSE stated that as a result of completion of process of demutualisation of stock exchanges, the KSE stood corporatised and demutualised as a public company limited by shares under the name of ‘Karachi Stock Exchange Limited’, with effect from August 27, 2012 after issuance of the certificate of re-registration by the Securities and Exchange Commission of Pakistan, in terms of the provisions of Stock Exchanges (Corporatisation, Demutualisation and Integration) Act, 2012 (ACT).
The KSE statement said that the KSE would now operate as demutualised entity, thereby ensuring segregation of ownership rights from trading rights.
“This conversion of the stock exchanges reflects a significant transformation of the Pakistan Capital Market and marks the successful completion of corporatisation process under the act which was promulgated on May 7, 2012,” the KSE said.
It stated that in consequence of the above, the directors existing on the above date on the board of the KSE ceased to hold office and were replaced by the first directors, i.e., six directors nominated by the SECP and four nominated by KSE representing the initial shareholders of KSE in terms of the Act.
Nadeem Naqvi, Managing Director, KSE, by virtue of his office is also a part of the board.
Under the Act, within 30 days of the date of demutualisation, KSE shall elect four directors to replace the directors nominated earlier by KSE. The chairman of the KSE board shall be from amongst the directors who do not represent the TRE Certificate Holders.
In the meeting on Thursday, the Board observed that it was a significant occasion in the history of KSE and hoped that the change bodes well for Pakistan’s economy, in general, and the capital markets, in particular. The board was confident that through demutualisation, not only the governance at the KSE would be further enhanced and would lead to independent, efficient and transparent decision making in the interest of all stakeholders, it would enhance confidence of domestic and overseas investors.
Our reporter adds from Lahore: The Lahore Stock Exchange has been “corporatised and demutualised as a public company limited by shares, says an LSE announcement on Thursday. The announcement said the Securities and Exchange Commission of Pakistan has issued a “certificate of re-registration to the LSE on Wednesday to change its status from a company limited by guarantee to a public company limited by shares.
The corporatisation of the exchange will not create a new legal entity or prejudice or affect its identity or continuity, the announcement said.
KSE 100-share index rises by 102 points
KARACHI, Aug 30: After taking a day-off on Wednesday, bulls re-entered with a vengeance at the Karachi stock market on Thursday.
The KSE-100 index rose by 102.40 points, recovering more than it had lost the day earlier. The index closed at 15,253.71 points, which represented a 52-week high.
The peculiar change during the day was the rally by the energy stocks, which pushed some of the second and third tier stocks on the backburner.
Investor sentiments were boosted by the fact that the index was quickly heading to its all-time high.
The jump in volume to 224 million shares of the trading value of Rs6.9 billion that changed hands on Thursday, up from 204 million shares valued at Rs4.2 billion the day before, evidenced larger participants of investors.
The upbeat mood of investors was also reflected in the gaining scrips at 198, almost twice the day’s losers at 101.
Market capitalisation added another Rs25 billion to touch Rs3.886 trillion, from Rs3.861 trillion the earlier day.
“The Pakistani market should be on the radar of foreign fund managers as it crossed the $41 billion mark on Thursday,” said a market participant.
Foreign portfolio inflow on Thursday stood at $3.77 million, though it included off-market trade.
Ahsan Mehanti at Arif Habib Corp stated that stocks closed bullish led by oil and telecom scrips on strong valuations. Investors took positions in growth stocks after strong earning announcements and recovery in global commodities. Improved refinery margins, renewed foreign interest, hopes for early settlement of judicial issues and improved economic outlook on back of
lower expected CPI Inflation for August played a catalyst role in bullish sentiments.

Equity dealer, Samar Iqbal at Topline Securities stated that the index heavyweight oil and gas sector remained investors’ favourites with positive sentiments created by expectation of healthy payout by Pakistan Oil Fields and National Refinery.
In addition, investors’ interest was also seen in telecom sector amid renewed hope of ICH related development.
Hasnain Asghar Ali, COO at Escorts Capital, observed that volumetric gains allowed the benchmark to re-initiate the rally after a technical breather in previous session.
Various stocks faced roll-over although there were sustained gains on renewed buying on dips. Prominent amongst the gainers in large cap stocks were in the banking sector and the Telecommunication stocks. The deteriorating law and order situation, negativity in regional and international equities and commodities along with fragile state on the economic and financial front were concerns for the participants.
The news flow was mixed. The Finance Ministry was said to be banking on external inflows of $2 billion, estimated in the budget to avert a balance of payments crisis in the current fiscal year, as well as IMF programme.
An official of the ministry said that he did not see the country going into a new IMF programme in the current fiscal year if estimated $400 million in budget on account of Coalition Support Fund (CSF) and $800 million each from the sale of 3G licenses and payment by Etislaat for PTCL were received.
The top volume stock on Thursday was PTCL, which rose by 66 paisa to Rs17.04 on 24m shares. It was followed by the lame duck Telecard Limited that gained 31 paisa to Rs2.75 on 19m shares; Jah.Sidd.Co shed 85 paisa to Rs14.75 on 17m shares.
Engro Foods closed limit up by Rs3.43 to Rs72.65 on 11m shares; Bank of Punjab edged higher by 48 paisa to Rs8.87 on 11m shares; World Telecom was up 18 paisa to Rs2.89 on 10m shares; Fauji Cement slipped 9 paisa to Rs6.62 on 7m shares; Bank Al-Falah jumped by 54 paisa to Rs17.34 on 7m shares; NIB Bank closed unchanged at Rs2.40, after trading between the high and low of 2.51 and 2.36 on 7m shares and D.G.Khan Cement added 19 paisa to Rs52.29 on 6m shares.

Company news:
Faysal Bank Limited: KARACHI, Aug 30: Faysal Bank Limited has launched the first ever UnionPay debit card. The bank has enabled its network of over 240 ATMs to accept all UnionPay cards, hence facilitating and providing banking services to international UnionPay customers visiting Pakistan, says a press release.
MOHAMMED SALEEM MANSOORI


Wednesday, 29 August 2012

STOCK MARKET UPDATE: 30.08.2012



STOCK:
Karachi Stocks  Up 74.23  Points:
KARACHI, Aug 29: The KSE-100 index was at 15224.54, Up 74.23 points.  (Today: 11.10  am)

August 28, 2012
5 TOP GAINERS  &  LOOSERS:

Rafhan Maize
Rs 100.00
Colgate Palmolive
Rs (57.23)
Nestle Pakistan
Rs 48.00
Mithchells Fruit
Rs (13.00)
Bata Pakistan
Rs 47.98
Sanofi-Aventis
Rs (11.88)
Indus Motor Com
Rs 8.47
Tri Pack Films
Rs (5.67)
Pak Gum & Chem
Rs 8.44
Clariant Pak
Rs (5.50)

KSE-Profit-taking shaves off 83 points
KARACHI, Aug 29: The bears charged on the Karachi stock market on Wednesday knocking off 83.17 points from the KSE-100 index, which settled at 15,151.31 points.
Most market participants did not express distress, saying that it was only natural that the investors should resort to profit-taking, following gigantic gains of 200 points in the last two trading sessions.
The market started out on a dismal note for there was not much to cheer either in the news bag or the incoming corporate results.
The sentiments were further dampened by the news that the Competition Commission of Pakistan had some reservations on the development related to ICH (international clearing house), which sent shares in telecommunication sector especially PTC spinning down, which hit the lower lock. The selling soon spread to other sectors.
For all the enthusiasm of the brokers and traders, some signs were ominous: The steep drop of 100 million shares or 32 per cent in volume to 204 million shares on Wednesday, compared to 312 million shares traded the previous day. Trading value dipped by Rs3.07 billion to Rs4.208 billion, from Rs7.225 billion the previous day.
Yet the more worrisome issue noted on Wednesday was the closing of index below the day’s lowest level of 15,127.91 points.
That made many wonder if the market was set to slide. However, most market participants took the decline for the day in stride.Ahsan Mehanti at Arif Habib Corp said that the stocks closed lower on profit-taking post major earning announcements at KSE. Consolidation in blue-chip stocks, uncertainty in global stocks and commodities, security concerns in the city and concerns for rising circular debt played a catalyst role in bearish sentiments at KSE.
Hasnain Asghar Ali, COO at Escorts Capital, stated that despite the automated roll-over window for future trades, the bulls in order to catch a breath took the overlapping period as an excuse for allowing technical adjustment. Consolidation was noted in
some frontline stocks which had given out satisfactory stock and cash dividends while other stocks rallied in anticipations of healthy corporate profitability.

Traders could continue to enter into short term based while the funds capitalising on the opportunities surfacing due to availability of stocks on deeper discounts could pick up stocks, letting index rise higher.
However, law and order situation along with economic and financial vulnerability coupled with political volatility were impediments.
Among the 317 stocks that came up for trading on Wednesday, 177 were losers, 113 gainers and 27 closed unchanged.
Market capitalisation fell by Rs23 billion to Rs3.861 trillion, from Rs3.883 trillion on Tuesday.
The biggest losers for the day were Colgate Palmolive, down by Rs57.23 to Rs1296, followed by Mitchell’s Fruit Farms lower by Rs13 to Rs360. The two big gainers included Rafhan Maize up by Rs100 to Rs3,885 and Nestle Pakistan higher by Rs48 to
Rs4,050.

Again bulk of the volume was noted in small cap stocks, with trading in seven stocks out of 10 priced below their par value.
PTCL which had been the maximum gainer for several days reversed its role to touch the minimum low of 91 paisa to Rs16.38 on 34m shares.
Pace (Pakistan) rose by 33 paisa to Rs3.10 on 16m shares, Telecard Limited shed 23 paisa to Rs2.44 on 15m shares, WorldCall Telecom slipped by 45 paisa to Rs2.71 on 12m shares and TRG Pakistan slid by 7 paisa to Rs4.04 on 11m shares.
NIB Bank was lower by four paisa to Rs2.40 on 10m shares, Jah Sidd Co was up 13 paisa to Rs15.60 on 8m shares, Fauji Cement slipped 18 paisa to Rs6.71 on 7m shares, D.G. Khan Cement added 30 paisa to Rs52.10 on 7m shares and Treet Corp (ROL) was
up by 21 paisa to Rs2.73 on 6m shares.


Karachi Stock Exchange  appoints Market Maker
KARACHI, Aug 29: The Karachi Stock Exchange took a step forward in promoting the derivatives market by appointment of Market Maker (MM) in Stock Index Futures.
At a press conference held on Wednesday, KSE Managing Director Nadeem Naqvi explained the modalities, terms and conditions of the Market Making Agreement signed with the brokerage firm, AKD Securities Ltd. The bourse had accepted the role of MM in KSE-30 based Stock Index Futures. It had also committed to execute a minimum of 100 contracts daily and up to 500 contracts within six months.
The KSE MD said that Stock Index Futures Contracts were launched as the central element of derivatives segment, yet the lack of liquidity was the biggest hurdle in their development, which included Cash Settled Single Stock Futures and Stock Index Futures. The MM would provide and execute the above mentioned contracts with quantum in value traded expected to grow more than five-fold to Rs32.5 million per day, from Rs 6.5 million per day in six months’ time. He said that the bourse hoped to introduce ‘options’ in the next phase.
Present on the occasion, AKD Securities CEO Farid Alam discussed the role of MM in detail. He said that the MM would be useful for speculators; hedgers and arbitragers. While volatility would be reduced, volumes would take a leap, he said.
Naqvi said that the Securities and Exchange Commission of Pakistan (SECP) had provided supportive role and expressed gratitude from KSE to the Commission for granting approval for wavier of basic deposits in Stock Index Futures and Cash Settled Single Stock Futures.
“The SECP had also approved regulations governing Exchange Traded Funds (ETFs), rightsising of margining regime for (Margin Trading, Stock Lending and Borrowing) and approving pro market amendments in regulation of governing Market Making at
KSE, in the best interests of Capital Market Development in the country,” he said.

In regard to other developments, the KSE MD said that Lahore Stock Exchange’s (LSE) request to allow KSE-30 Index based Futures trading at Lahore Stock Exchange was approved by the KSE Board. The KSE and Bombay Stock Exchange (BSE) were in advanced stage of talks over cross listing of indices on Futures Contracts. The recent circular from the Reserve Bank of India (RBI) allowing Pakistani individual and corporates in Indian company shares was a welcome development and should help in accelerating the cross listing process between KSE and BSE, he said.
“Discussions with Dubai Financial Market (DFM) and Abu Dhabi Securities Market for cross listing of benchmark indices had also taken place,” Naqvi stated, adding: “liquidity begets liquidity”.
He mentioned that the biggest challenge in derivatives had always been to kick start the market. Citing the Indian example, he stated that those markets took half a decade and their derivative market remained moribund until BSE appointed Market Makers.

Company news:
ICI profit falls: KARACHI, Aug 29: ICI Pakistan posted after tax profit at Rs462 million for the half year ended June 30, 2012, representing earning per share (eps) at Rs5 per share.
The board which met on Wednesday declared interim cash dividend at Rs3.50 per share. The earnings were down by 52pc over the similar period last year. Operating results for 1H12 at Rs748 million were lower by 32pc over the corresponding six months of the previous year “mainly due to reduction in unit gross margins in the PSF business because of lower demand and margin shrinkage across the entire polyester chain,” ICI said on Wednesday.
The company said that rising cost of alternative fuels resulted in additional cost of Rs348m compared to same time last year. “In addition, the company also incurred a one-off expense of Rs124m relating to demerger of Paints business”, ICI said.

MOHAMMED SALEEM MANSOORI

STOCK MARKET UPDATE:29.08.2012

STOCK:
Karachi Stocks  Down 22.88  Points:
KARACHI, Aug 29: The KSE-100 index was at 15211.60, down 22.88 points.  (Today: 12.10  Pm)

August 28, 2012
5 TOP GAINERS  &  LOOSERS:

Bata Pak
Rs 45.70
UniLever Pak
Rs (348.50)
Exide Pak
Rs 13.36
Colgate Palmolive
Rs (70.10)
Mithchell’s Fruit
Rs 13.00
Nestle Pakistan
Rs (68.00)
Abbott Labs
Rs 9.68
Indus Dyeing
Rs (20.00)
Pak Gum & Chem
Rs 8.01
Service Industries
Rs (8.13)

Karachi Stocks extend overnight gains
KARACHI, Aug 28: Shares gained further strength on the Karachi Stock market, where the KSE-100 index was up by 62.82 points to settle at 15,234.48 points.
Market participants said that the 15,000-level did not create anxiety in the minds of investors who were willing to take risk for rewards. The index now short of less than 500 points of the highest ever 15,670 points achieved on April 20, 2008, the sizeable
gains on Wednesday on higher turnover were believed by some to be surprising.

Several market strategists were calling for caution, particularly as the low priced stocks were lifting volumes.
On Wednesday, out of the 10 top volume leaders, as many as eight were priced below their par values and were second and third tier stocks. “Less active, low priced stocks with unsound fundamentals are sure sign of trouble” said an analyst. But even heavyweights in the oil & gas and fertiliser sectors were in demand on Wednesday.
It was not difficult for traders to look for positive news. A bevy of companies announced their financial results with several posting better than expected numbers. More big ticket companies were to announce results in the next few days.
The Government on Wednesday unveiled the Petroleum Production and Exploration Policy 2012, announcing an increase in consumer gas price by up to 100 percent in one year. The government enhanced wellhead gas price for Exploration and Production (E&P) companies.
Banking stocks came up for trading at about mid-day, several made heavy gains, but conceding some of it by the close. That was despite the gloomy news of the accumulation in Non-Performing Loans (NPLs) of banking industry which was stated to have reached all time high mark of Rs653 billion by end of June 2012. Analyst Ahsan Mehanti said that stocks closed higher amid institutional interest in blue chip stocks ahead of major earning announcements after Pak-US accord signing on Nato supplies.
Fall in CPI for Jul’12 to 9.6 per cent, strong earnings outlook and hopes for release of $1.12 billion payment from US against services to coalition forces played a catalyst role in bullish sentiments.
Hasnain Asghar Ali, COO at Escorts Capital stated that high dividend yields and likely turnaround mainly in the leveraged companies due to recent cut in benchmark interest rates had created growth space in the leveraged companies. Leading from the front both in terms of gains and turnover was the Pakistan Telecom.
Post midday spur in the banking stocks wherein even the frontline stocks are trading at low price to book values attracted local portfolios.
Although volatility on political front is likely to persist along with tough economic and financial issues that might stay gloomy for now. Among the 338 active scrips, 169 were gainers, 146 losers and 23 remained unchanged. Turnover on Wednesday improved 16 per cent to 312 million shares, compared to 269 million shares traded on Tuesday.
Trading value rose to Rs7.225 billion, from Rs5.931 billion. Market capitalisation rose to Rs3.883 trillion, from Rs3.867 trillion the earlier day.
On the active list, PTCL again topped volume leaders with 23 million shares, up by maximum Re1 to Rs17.29. It was followed by the dormant Telecard Limited adding 43 paisa to Rs2.67 on 23m shares, Fauji Cement shed 17 paisa to Rs6.89 on 20m shares, Lafarge Pakistan shed 21 paisa to Rs5.75 on 19m shares, WorldCall Telecom rose 11 paisa to Rs3.16 on 19m shares, NIB Bank edged higher by 15 paisa to Rs2.44 on 17m shares, TRG Pakistan increased by 24 paisa to Rs4.11 on 11m shares, D.G. Khan Cement conceded 16 paisa from the heavy gains of Tuesday, the scrip closing at Rs51.80 on 10m shares, Wateen Telecom gained 23 paisa to Rs2.91 on 10m shares and KESC ceded six paisa to Rs6.13 on 8m shares.

Pakistani stocks end higher as political temperatures cool
KARACHI: Pakistani stocks ended higher on Tuesday as investors’ concerns over political turmoil eased after the prime minister won more time from the Supreme Court in a case that could see him charged with contempt of court or disqualified, traders said.
The Karachi Stock Exchange (KSE) benchmark 100-share index ended 0.41 per cent, or 62.82 points, higher at 15,234.48, on volume of 18.71 million shares.
On Monday, the Supreme Court gave Prime Minister Raja Pervez Ashraf another three weeks to respond to its orders to reopen corruption cases against President Asif Ali Zardari.
The move continued to calm anxieties among investors on Tuesday. The case has fuelled tension in a long-running standoff between the government and increasingly assertive judiciary.
Pakistan Telecommunications Company Limited was the biggest winner in terms of volume, gaining 6.14 per cent. It closed at 17.29 rupees.  In the currency market, the Pakistani rupee ended at 94.79/94.85 compared to 94.80/85 on Monday.
Overnight rates in the money market ended at steady at 7.5 per cent.

SECP re-registers stock exchanges
ISLAMABAD, Aug 27: The Securities and Exchange Commission of Pakistan (SECP) on Monday issued certificates of re-registration to Karachi, Lahore and Islamabad stock exchanges under the Stock Exchanges (Corporatization, Demutualization and Integration) Act, 2012, as an evidence of their change in status from companies limited by guarantees to public companies limited by shares.
The stock exchanges will now operate as for-profit, demutualized entities thereby ensuring a clear segregation of ownership rights from trading rights.
Brokers and Trading Rights Entitlement (TRE) Certificate Holders, who previously predominantly controlled the affairs of the stock exchanges, will as a result of this demutualization now not be able to hold majority on the board of directors and be entitled to a maximum 40 per cent voting shares of the stock exchange.
The SECP, while approving the plans for segregation of commercial and regulatory functions of the exchanges, has ensured that the demutualised entities exhibit enhanced governance and transparency and greater balance between interests of various stakeholders while supporting independent management.
This conversion of the stock exchanges reflects a significant transformation of the Pakistan Capital Market and marks the successful completion of corporatization process under the Act which was promulgated on May 7.
Upon receipt of the certificates of re-registration, the existing directors on the boards of the stock exchanges shall cease to hold office and be replaced by the first directors that is six directors nominated by the SECP and four broker directors nominated by
each respective stock exchange.

Within 30 days of the date of demutualization each stock exchange shall elect four TRE certificate holders to replace the broker directors.
The chairmen of the boards of the exchanges shall be from among directors who do not represent the TRE Certificate Holders.
As envisaged in the Act, the next phase of the exercise will entail the sale of shares of the stock exchanges to the strategic
investors, general public and financial institutions.

Participation of strategic investors shall result in making the country’s capital market more accessible for the international community while ensuring strategic alliances, influx of state of the art technologies and making the stock exchanges more competitive investment destinations.—APP

Company news:
EFU Life : KARACHI, Aug 28: EFU Life Assurance Ltd has announced its financial results for the half year ended June 30, 2012, a press release said. The company registered a strong increase in its profitability, with a profit after tax of Rs445 million for the half year 2012 (2011: Rs300 million). The earnings per share increased to Rs5.24 per share (2011: Rs3.53).

The board of directors in its meeting on Monday also declared interim cash dividend of 15 per cent i.e. Rs1.5 per share for the half year.

Atlas Battery announces cash, bonus: KARACHI, Aug 27: Atlas Battery Limited announced results for the year ended on June 30, 2012, on Monday, posting profit after tax (PAT) at Rs486 million, up from Rs355 million the previous year. Sales rose to Rs7.2 billion, from Rs5.9 billion.
However, a surprise announcement by the Board of a hefty cash dividend at 100 per cent (Rs10 for par value of Rs10 per share) tied to a stock bonus at 20 per cent (one-for-five) boosted investor sentiments.
Packages Limited posted PAT at Rs272 million for the six months ended June 30, 2012, overturning loss of Rs209 million in the similar period of the previous year. Bulk of the profit was contributed by ‘reversal of impairment charged on investments’ amounting to Rs252 million in the period under review. Net sales were up to Rs10.1 billion, slightly higher from Rs10 billion in the six months of 2011.
Habib-ADM Limited announced cash dividend at 80 per cent (Rs4 for every shares of Rs5 each). Net profit for the half year ended June 30, 2012 amounted to Rs205 billion up from Rs117 billion in the comparable previous year. Net sales grew to Rs1.404 billion, up from Rs1.3 billion in the previous half term.

MOHAMMED SALEEM MANSOORI