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Wednesday, 29 August 2012

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

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