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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


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