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Wednesday, 31 October 2012

STOCK MARKET UPDATE: 01.11.2012



STOCK:
Karachi Stocks Up 114.18 Points:
KARACHI, Oct 31: At the close of trading, the KSE-100 index was at 15910.11, up 114.18 points. 
 (Today Market is 57.97 Up @ 11.41 am)

October 31, 2012
5 TOP GAINERS  &  LOOSERS:

Bata (Pak) SPOT
Rs 71.00
Colgate Palmolive
Rs (67.47)
Island Textile
Rs 18.23
National Foods
Rs (17.13)
Shezan International
Rs 17.50
Indus Dyeing
Rs (12.08)
Attock Petroleum
Rs 8.87
Pak Gum & Chemical
Rs (10.87)
Clariant Pakistan
Rs 7.65
Attock Refinery
Rs (8.57)

Karachi Stock Exchange hits fresh all-time high

KARACHI, Oct 31: Institutional and foreign buying led the Karachi Stock Exchange (KSE) to a historic high and a record closing high on Wednesday, with cement sector and blue chip companies in the limelight, dealers said.
The KSE-100 share index ended 0.72 per cent, or 111.51 points, higher to a record closing of 15,910.11 points. It hit a fresh all-time high at 15,924.96 points.
Volume increased to 135.84 million shares, compared with 84.99 million shares traded on Tuesday. Trading value rose more than double to almost Rs5 billion from the previous day’s Rs2.19 billion.
Market capitalization also increased to Rs3.96 trillion, compared with Rs3.94 trillion on Tuesday, an increase of over Rs25 billion.
“Pakistan stocks closed yet again at highest close ever led by oil and cement stocks as global commodities and stocks rally post Hurricane Sandy,” said Ahsan Mehanti from Arif Habib Ltd.
Energy stocks helped support the market following an increase in global oil prices.
Heavy weights Oil and Gas Development Co Ltd and Pakistan Oilfields rose Rs3.96 to Rs182.06 and Rs5.30 to Rs409.97 respectively.
“With renewed buying interest from institutional clients and foreign fund managers market closed to yet another historic high.
Investors anticipating low inflation number for the month of October due tomorrow. Bullish sentiments further augmented after better than expected result announcements from (PPL Pakistan Petroleum Ltd) and HUBCO (Hub Power Co Ltd),” said Samar Iqbal, a dealer at Topline Securities Ltd.
Inflation data for October is expected to be released on Thursday and AKD Securities expect CPI to increase 7.7 percent year-on-year, which would be the lowest level in three years. This would also push the case for another 50 basis points cut in the discount rate in the State Bank of Pakistan’s next monetary policy announcement.
PPL announced its first quarter FY13 earning per share (EPS) of R6.88, up 14 percent, compared with an EPS of Rs6.02 in the same quarter last year.
According to Topline Securities, the growth in earnings was primarily due to an 8 per cent growth in company’s net sales as it benefited from higher hydrocarbon price and improved oil production primarily from Naspha block.
Meanwhile HUBCO announced unconsolidated earnings of Rs1.83 per share during July-Sept of 2012-13 depicting a significant increase of 71 percent as compared to EPS Rs1.07 recorded in the same quarter last year Foreigners were active in the market as they bought shares worth a net $2.78 million on Wednesday, compared with $2.11 million on Tuesday, bringing the total net buying for this month to $38.5 million. Banks were the major buyers of equity with $38.5 million.
The market capitalisation based KSE 30-index gained 0.85 per cent, or 111.51 points, to close at 13,024.76 points.
Out of the 336 companies traded, the value of 144 increased, 173 decreased, while 19 remained unchanged.
The list of volume leaders was topped by DG Khan Cement, which rose Rs1.04 to Rs52.91 on turnover of 14.98 million shares, Azgard Nine rose 46 paisa to Rs6.97 on 9 million shares but Askari Bank fell 7 paisa to Rs16.57 on 7.73 million shares.
Jahangir Siddiqui Co ended 20 paisa higher at Rs14.45 on 6.68 million shares, Byco Petroleum rose 40 paisa to Rs8.68 on 6.47 million shares and Fauji Cement closed 2 paisa higher at Rs6.40 on 6 million shares.
PTCL closed 12 paisa higher at Rs16.89 on 3.86 million shares, Lucky Cement rose Rs4.34 to Rs143.41 on 3.47 million shares, and Fatima Fertiliser gained 58 paisa to Rs25.37 on 3.5 million shares.
B.O. Punjab ended 10 paisa lower at Rs8.23 on turnover of 2.82 million shares.

Pakistan’s ranking on financial index dips

ISLAMABAD, Oct 31: Ranking 58 out of 62 economies in the ‘Financial Development Index’ of 2012 and losing 3 points from its position of 55 in 2011, Pakistan shows weaknesses across the majority of the pillars in the index.
In addition, Pakistan has experienced relatively steep declines in both the commercial and retail access, thus facing tough challenges on developing its financial markets, says the ‘Financial Development Report 2012’, published by the World Economic Forum (WEF) on Wednesday.
Still, results of this year’s index indicate some signs of improvement, as “Pakistan’s jump in the financial stability pillar was primarily due to increased banking system ability,” the report notes.
Pakistan continues to show stability on the Financial Development Index of the World Economic Forum on the indicators; cost of closing a business, where the rank of 5 was maintained, also showing stability in frequency of banking crises and output loss during banking crises, Pakistan again secured the top rank among 62 economies; similarly on the public ownership of banks, which is a percentage of assets held by the 10 largest banks that is located in banks Pakistan’s ranking on financial index dips that are more than 25 per cent government owned, Pakistan again secured the top rank of 1.
The report also shows an improvement in the total number of active borrowers from microfinance institutions per 1,000 adults, where Pakistan has improved its position of 12 in 2011 to 9th in 2012. Pakistan has shown slight improvements on the strength of auditing and reporting standards, where it is ranked 48 in 2012 as compared to 52 in 2011.
On the pillar of legal and regulatory issues Pakistan has shown significant gains, by improving the burden of government regulations, securing 21 rank as compared to 32 last year. The regulation of securities exchanges has also improved 5 points with a rank of 37 out of 62 economies globally.
The current account balance to GDP, a variable, which is the three-year average of current account balance to GDP, indicates the difficulty Pakistan had in mobilizing the foreign exchange necessary for debt service has also improved from 53 last year to 40 in the current year.
The economy has also shown improvements in the “aggregate profitability indicator”, which is based on a three-year average of three measures of profitability: net interest margin, bank return on assets, and bank return on equity, this was measured on an average from 2008 to 2010, Pakistan improved 8 points on this, securing 41 rank on the Financial Development Index 2012.
Other area where Pakistan showed improvement of 14 ranks was the real growth of direct insurance premiums, where Pakistan stands at 30th rank.
However Pakistan showed discouraging performance on various key indicators, where it lost it development advantage on multiple factors, whereas; intellectual property protection (53) and effectiveness of law-making bodies (47) as compared to 48 and 43 from last year.
The distortive effect of taxes and subsidies on competition, which is to what extent does government subsidies and tax breaks distort competition, Pakistan lost its rank from 46 in 2011 to 53 in 2012.
In terms of Internet users, Pakistan has seen a decline in its internet penetration, where it lost its position of 54 to 61 as compared to 2011 and 2012 respectively.
On the external vulnerability indicator, which is the sum of several measures of external exposure as a percentage of foreign exchange reserves, Pakistan has lost an alarming 14 points and it stands at 20 in 2012. However Pakistan still maintains a development advantage in this area.
Whereas the world has shown improvements in the banking system, such as Tier 1 capital ratios and non-performing loans to total loans, Pakistan has declined in these two indicators, securing 26 and 57 out of 62 economies in 2012.
Company news:
Engro posts Rs2.9bn loss: ISLAMABAD, Oct 31: Gas curtailment caused by the flagrant violation of the contractual obligations by SNGPL has severely impacted the operations of the fertiliser business, Engro announced here on Wednesday.
Consequently, the business made a net loss of Rs2,978 million during the nine months ending September 30, 2012 against a net profit of Rs3,510 million the same period last year, Engro Corporation said in its financial results.
The loss is directly attributable to decreased sales volume, lower margins, declining farm economics, and absence of speculative buying due to expectation of a reduction in the price. Engro produced 709,000 tons of urea during January-September period compared to 983,000 tons produced in the same period of previous year.
The decrease was attributable to the gas curtailment on the new plant which received gas for only 45 days allowing for only 33 days of production.
On the contrary, the foods business continued its rapid growth trajectory registering a turnover increase of 38 per cent to Rs29 billion during the nine months of 2012 as compared to Rs21 billion in the corresponding period last year.
In addition, Engro’s investment in the Halal Foods business in Canada, Al Safa, also achieved sizable sales revenue of C$8.8 million during the nine months of 2012.
The petrochemicals business saw an increase in domestic PVC sales to 112,000 tons during the nine months of 2012 as compared to 85,000 tons in the corresponding period last year. The business posted a net profit of Rs83 million for the nine months ended September 30, 2012, compared to a loss of Rs440 million during the same period last year.
During the nine months of 2012, the Engro Qadirpur Powergen plant dispatched a total of 1,316GWh to the national grid and demonstrated a billable availability of 100.3 per cent. The business declared a net profit of Rs1,571 million for the nine months ended September 30, 2012 as compared to a profit of Rs1,239 million during the same period last year.
On the Sindh Engro Coal Mining (SECMC) front, Engro is actively pursuing different parties for possible coal off-take agreements specifically after the change of strategy to decouple the mining and power projects.
The chemical storage and handling business Engro Vopak Terminal had smooth operations during the nine months of 2012 and posted a net profit of Rs1,098 million as compared to a net profit of Rs781 million the same period last year.
The consolidated revenue of Engro stood at Rs83 billion for the nine months of 2012, as compared to Rs79 billion in the same period last year, while net loss after tax was Rs443 million as compared to a net profit after tax of Rs5,590 million in the same period last year.
KESC gets stay against attachment of accounts: KARACHI, Oct 31: The Sindh High Court on Wednesday granted stay against attachment of bank accounts and suspended any action for recovery of Rs890 million from Karachi Electric Supply Company.
According to a KESC spokesman, the company had prayed to the court that the letter issued by Deputy Commissioner (Inland Revenue) on Oct 30 and an order from Federal Board of Revenue of Oct 25 were illegal, without jurisdiction and contrary to the Income Tax Ordinance 2001.
The KESC had prayed that KESC gets stay against attachment of accounts the amount had been unilaterally determined and no show-cause notice had been issued nor a chance of hearing had been given.
The demand raised therein was, therefore, without jurisdiction and in violation of the law.
It also submitted the details of its various communications to the FBR that a huge amount of Rs2.958 billion was outstanding against Federal Board of Revenue (FBR) on account of sales tax and income tax refunds.
It also complained to the FBR about consistent delay in the release of funds which had been adversely impacting the liquidity position of the company and has limited its ability to discharge its obligations.
The KESC prayed that the Large Taxpayers Unit may be asked to release the refunds at the earliest so that the KESC could pay off the dues or have them adjusted against the refund claims.
However, these payments have not been made so far.

MOHAMMED SALEEM MANSOORI

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