STOCK MARKET UPDATE: 02.11.2012

STOCK:

Karachi Stocks Up 76.07 Points:
KARACHI, Nov 02: The KSE-100 index was at 16038.44, up 76.07 points.  (Today @ 10.56 am)

November 01, 2012

5 TOP GAINERS  &  LOOSERS:

Island Textile	Rs 19.14	Exide Pakistan	Rs (8.95)
Sanofi-Aventis	Rs 14.28	Pak Gum & Che	Rs (8.82)
Unilever Pak	Rs 11.96	National Foods	Rs (5.69)
Wyeth Pakistan	Rs 10.00	Mitchell’s Fruit	Rs (5.11)
Colgate Palmolive	Rs 7.92	Clover Pakistan	Rs (3.69)

Stocks hit historic 16,000-level

KARACHI, Nov 1: The Karachi Stock Exchange witnessed a historic day on Thursday as the KSE 100-index crossed the 16,000-point level for the first time as institutions and investors bought stocks on hopes of an interest rate cut due to an expected decrease in the pace of inflation, dealers said.
However, the benchmark index failed to sustain the gains above the coveted level and ended with 52.26 points gain at a record closing of 15,962.37 points.
Volume increased to 188.19 million shares compared with 135.84 million shares traded on Wednesday. Market capitalisation also rose to Rs3.98 trillion Rs3.96 trillion in the previous trading session, an increase of over Rs15 billion.
“The stock market for the first time in history crossed 16,000-mark during the trading session. Increased participation was seen from both individual and institutional investors well reflected in the increased volume. Investors think that lower inflation will force central bank to further reduce its policy rate. That is why positive trend was seen in almost all the leading stocks,” said Samar Iqbal, a dealer at Topline Securities Ltd.
Inflation data for October is expected to be released on Friday and analysts are expecting inflation to be at 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.
Cement sector remained in the limelight on hopes of strong corporate earnings for the first quarter ended Sept. 30, due to be released in the coming days.
Blue chip companies especially from the energy market helped the market cross 16,000 points due to a rise in international oil prices.
Oil and Gas Development Co Ltd rose Rs1.48 to Rs183.54 and Pakistan Oilfields gained Rs4.12 to Rs414.09.
“Trading at the highest trajectory may create hitch in pitching for fresh positions, with high expectations of rate cuts,
phenomenal and consistent improvement in corporate profitability will however attract fresh funds from the local economy,” said Hasnain Asghar Ali, COO from Escorts Capital.
Foreigners were active in the market as they bought shares worth a net $6.1 million on Thursday, compared with $2.78 million on Wednesday.
The market capitalisation based KSE 30-index gained 51.32 points, to close at 13,076.04 points.
Out of the 376 companies traded, the value of 183 increased, 150 decreased, while 43 remained unchanged.
The list of volume leaders was topped by Maple Leaf Cement, which rose 99 paisa to Rs10.13 on turnover of 25.14 million shares, Fauji Cement rose 4 paisa to Rs6.44 on 11.29 million shares and Azgard Nine rose 16 paisa to Rs7.13 on 9.13 million shares.
Dewan Cement gained 44 paisa to Rs5.11 on 8.24 million shares but Jahangir Siddiqui Co ended 25 paisa lower at Rs14.20 on 7.96 million shares and Bank Alfalah rose 9 paisa to Rs15.11 on 7.36 million shares.
KESC closed two paisa lower at Rs5.72 on 7.32 million shares, Hub Power Co Ltd rose 46 paisa to Rs46.38 on 6.72 million shares, and Lafarge Pakistan gained 8 paisa to Rs5.48 on 6.44 million shares.
Askari Bank ended 27 paisa higher at Rs16.84 on 6.2 million shares. Bank of Punjab ended 10 paisa lower at Rs8.23 on turnover of 2.82 million shares.

SECP ranking in WEF index improves

ISLAMABAD, Nov 1: While Pakistan’s ranking has declined at the Financial Development Index of 2012, the Securities and Exchange Commission of Pakistan’s ranking has improved by five points, mainly due to structural and organisational reforms introduced in the recent past.
The Financial Development Index of 2012 has been launched by the World Economic Forum.
It highlighted that the SECP secured 37th position out of 62 securities regulators globally, whereas China ranked 38th in the category of regulation of securities and exchanges.
“This is due to SECP’s recent initiatives which include introduction of standard operating procedures in the form of five manuals for a more transparent working of the Commission,” said SECP Chairman Mohammad Ali, adding that these manuals are covering all aspects of enforcement functions of the SECP.
The other major initiatives of the SECP that led to its improved ranking are demutualisation of stock exchanges, the capital market investor education and awareness programme, implementation of the concept of e-IPO and launch of new Takaful rules.
The SECP also introduced new futures contracts at the Pakistan Mercantile Exchange Limited in sugar, wheat, crude oil, silver and gold that aim to fulfill hedging requirements of various groups of investors in the newly developed commodities market.
The Corporate Law Review Commission was also revived and a reform committee was constituted to furnish recommendations for promotion and growth of a sustainable non-banking financial sector.
In addition, the Code of Corporate Governance 2012 has also been introduced revising the existing requirements and making it in line with international best practices.
Moreover, the capital market investor education and awareness programme was launched in July 2012, aimed at making people aware of various financial products and understanding their rights and responsibilities to enable them to make informed investment decision.
A code for the state-owned enterprises is being finalised by the SECP which is expected to streamline operational matters of public sector entities in line with corporate culture.

MOHAMMED SALEEM MANSOORI