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Thursday, 9 August 2012

STOCK MARKET UPDATE: 10.08.2012



STOCK:
Karachi Stocks Up 14.03 Points:
KARACHI, Aug 09: At the close of trading, the KSE-100 index was at 14758.17, up 14.03 points.

August 9, 2012
5 TOP GAINERS  &  LOOSERS:

UniLever Pak
Rs 101.00
UniLever Pak
Rs (101.00)
Bata (Pak) Limi
Rs 35.00
Bata Pak
Rs (35.00)
Siemens Pakistan
Rs 25.00
Siemens Pak
Rs (25.00)
Wyeth Pak Limit
Rs 10.25
Wyeth Pak
Rs (10.25)
Pak Refinery
Rs 8.54
Pak Refinery
Rs (8.54)

Karachi Stocks inch up ahead of monetary policy
KARACHI, Aug 9: Stocks marginally rose on Thursday, as cautious investors stayed on the sidelines ahead of the monetary policy due to be unveiled by the State Bank of Pakistan on Friday.
The KSE-index was up 15.45 points and ended at 14,759.59 with volume at 75 million shares, down from 85 million shares traded the previous day.
E&P giant and the heaviest weighted company on the KSE-index OGDC, PSO and Indus Motors announced their financial results but were unable to spur buying activity in the country’s main stock index.
There were concerns on the political front regarding the outcome of the notice sent to the prime minister by the Supreme Court
and investors also fretted over the country’s economic position.

Alongside, historically trading is usually dull towards the end of Ramazan.
According to National Clearing Company of Pakistan data, local institutions sold shares worth $1.61 million on Thursday, but early losses were translated into gains through buying by foreign investors as there was a net inflow of $1.15 million.
Ahsan Mehanti at Arif Habib Corp said that stocks closed higher on strong earning announcement by PSO, amid cautious activity ahead of SBP policy announcement. Uncertainty in global stocks and commodities affected the sentiments despite strong earnings outlook for banking and oil sector. However, approval of Petroleum Policy 2012 by Council of Common Interest, higher exploration targets set for PPL help boost some local sentiment at the KSE.
CCI approved Petroleum Policy 2012 that envisages an increase in well-head prices and constituted a committee to ensure uniform distribution of electricity among the federating units as well as measures for recovery of power dues.
In other news, import of used cars of up to 1,000cc jumped in July as sale of locally-produced cars remained flat. Oil marketing companies have conveyed their concerns to the Ministry of Petroleum and Natural Resources regarding the ECC decision of weekly POL price determination that would lead to severe shortage of petroleum products in the country.
The KSE-index made an intra-day high at 14,814.48 points in early trade on earnings and payout euphoria, however some investors chose to book gains which was countered by accumulation of shares by bargain hunters.
Hasnain Asghar Ali, COO at Escorts Capital said that accumulation on dips not only supported consolidation, it also averted follow-up selling that could have emerged due to mainly less number of trading sessions in upcoming weeks.
The KSE-30 index rose 20.57 points to 12,712.88 points. Trading value slid by Rs352 million to Rs3.052 billion, from Rs2.699 billion and the market capitalization edged higher by Rs3 billion to Rs3.767 trillion, from Rs3.764 trillion.
Of the 297 stocks traded on Thursday, gainers and losers were almost evenly divided, at 133 and 131 stocks, respectively.
On the ten volume leaders’ list, Jah Sidd Co rose by 38 paisa to Rs15.11 on 6m shares, KESC slipped by 22 paisa to Rs4.27 on 5m shares, Maple Leaf Cement improved by 10 paisa to Rs7.38 on 4m shares, Hub Power Company lost 41 paisa to Rs45.02 on 4m shares, Nishat Mills gained 43 paisa to Rs53.64 on 3m shares, NIB Bank shed one paisa to Rs2.13 on 3m shares, BankIslami Pakistan was down by 48 paisa to Rs9.02 on 3m shares, D.G. Khan Cement declined by 31 paisa to Rs46.95 on 3m shares, Engro Corporation was up by Rs1.48 to Rs92.05 on 2m shares and Quice Food kept up its gaining streak, adding 94 paisa to the price of share which ended at Rs12.17 on 2m shares.

Company News:
1) PSO revenue scales over Rs1tr: KARACHI, Aug 9: Pakistan State Oil announced profit after tax at Rs9.1 billion, translating into earning per share (eps) at Rs52.80 for the year ended June 30, 2012.
The earnings were down 39 per cent over the earlier year’s Rs14.8 billion (eps: Rs86.17), but above the analysts’ consensus expectations; most had forecast a bleaker bottom line.
The board which met on Thursday also announced a final cash dividend at Rs2.50 per share, taking cumulative dividend in FY12 to Rs5.50 per share.
Alongside cash dividend, PSO also announced a bonus issue at 20 per cent, which was quite a pleasant surprise for the market.
Investors greeted the results and payout with an increase of Rs8.54 in the stock price, which climbed to Rs250.31.
A statement released by PSO took pride on becoming the first national trillion rupee company; the company’s revenues
exceeded Rs1,199 billion in the latest year, compared to Rs975 billion in FY11, representing a growth of 23pc.

PSO stated: “The profitability was severely impacted by rapid devaluation of Pak rupee along with the reduction in inventory gains.”
The losses were said to have been absorbed by improvement in margins of Furnace Oil and HSD along with the recovery of financial income from the power sector.
The company also noted that the earnings in FY 12 were lower as compared to the year earlier, due to a deferred tax adjustment made in the previous year amounting to Rs2.29 billion which had resulted from the reinstatement of the rate of turnover tax by
the tax authorities.

“Further, the financial cost resulting from the accumulation of highest ever receivables continues to constrain both profitability and liquidity of PSO,” the company stated.
It said that the industry’s volumes for Black Oil during the year, decreased by 8 per cent, whereas, White Oil grew by 4pc reflecting an increase in PMG consumption of 22pc while a decline of 1pc was recorded in HSD demand.
“In spite of reduction in market size of HSD, PSO has been able to increase its market share from 54.9pc to 56pc,” the company asserted and added that the company had also continued its overall domination of the market with its share in the Black Oil and
White Oil segments at 78.1pc and 55.1pc respectively, thereby contributing to an overall market share of 65.4pc.

The PSO board expressed increasing concern over the rising balance of receivables which stood at Rs237 billion as on Aug 9, 2012.
“This has created an acute financial crunch on the company as it struggles to meet its international and local obligations,” the board stated, adding that the situation was not sustainable and presented a significant risk to PSO’s ability to ensure availability of product.
The management was said to be in continuous pursuit of IPPs as well as the government for recovery of its outstanding receivables.
2)OGDC posts record profit: ISLAMABAD, Aug 9: Supported by higher international oil prices, the country’s largest oil and gas producer – OGDCL – posted a record Rs97 billion profit after tax, showing a strong growth of more than 52 per cent over last year’s comparative profit of Rs63.5 billion.
According to official results, the company posted a profit before tax of Rs133.08 billion during financial year ending June 30, 2012, compared with Rs100 billion of the same period last year, showing an improvement of 46 per cent.
Net sales during the year increased to Rs197.84 billion compared to Rs155.63 billion, showing an improvement of 27 per cent.
As a result, the board of directors of the company announced an earning per share (EPS) of Rs22.53, up 52.5 per cent from Rs14.77 per share last year.
The managing director of Oil and Gas Development Company Limited (OGDCL) attributed stellar performance to better prices and stable operating performance.
“The increase in the company’s production volumes along with higher realised prices of crude oil, gas LPG and Sulphur lead the company to register a record profit after tax of Rs96.9 billion translating into earnings per share (EPS) of Rs22.53”, he said.
Despite this, company’s over Rs120 billion remain stuck up with refineries and gas companies owing to a huge stock of energy sector circular debt, affecting its future development plans.
During the year 2011-12, the company was able to locate new hydrocarbon reserves with two new significant oil and gas discoveries of Nashpa-2 and at Zin X-1.
Nashpa-2 development was fast-tracked and has already been put on production. In addition, it also completed Phase-1 of the Kunnar Pasahki Deep-Tando Allah Yar development project that contributed significantly to its hydrocarbon volumes
including about 110 mmcfd (million cubic feet per day) of gas, 1,500 barrel per day of condensate and 130 metric tons per day of LPG.

The financial performance coincided with OGDCL’s golden jubilee as it completed 50 years of its operations.
As such, the company’s net sales increased to Rs197.84 billion compared to Rs155.631 billion in the corresponding period last year.
With Rs97 billion net profit, the company announced a final dividend of Rs2.75 per share.
The company’s total operating profit margin and net profit margin stood at 62 per cent and 49 per cent respectively as average net realised price of crude oil sold was $84.91/bbl as against $72.05/bbl during corresponding period last year.
Average net realised price for natural gas sold was Rs228.56 million cubic feet as against Rs214.02 during corresponding period last year.
The company said it spudded 17 new wells, including seven exploratory and appraisal wells and 10 development wells, during the year ended June 30, 2012. Its net crude production of oil stood at 37,615 bpd (barrel per day), net gas production at 1,091
mmcfd, net LPG production of 205 mtpd (million tons per day and net sulphur production of 62 mtpd.


MOHAMMED SALEEM MANSOORI

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