STOCK MARKET UPDATE: 22.11.2012

STOCK:

Karachi Stocks Up 5.18 Points:
KARACHI, Nov 21: At the close of trading, the KSE-100 index was at 16256.97, up 5.18 points. 

(Today Market is 24.17 Up @ 11.51 am)

November 21, 2012

 5 TOP GAINERS  &  LOOSERS:

Island Textile	Rs 34.36	Bata (Pak)	Rs (27.50)
Bhanero Tex.	Rs 11.30	Indus Dyeing	Rs (11.07)
Millat Tractors	Rs 10.96	Murree Brewery	Rs (7.62)
Colgate Palmolive	Rs 10.00	IGI Insurance	Rs (6.34)
Siemens Pakistan	Rs 10.00	Wyeth Pak	Rs (5.00)

Stocks lose 19 points in cautious trade

KARACHI, Nov 21: Stocks ended lower on Wednesday on continued profit-selling as the market was still hovering close to its all-time high and also the investors were said to be cautious due to the deteriorating law and order situation in the country’s financial hub.
The KSE 100-share index ended 0.11 per cent, or 18.60 points lower at 16,233.19 points. The index hit a historic high at 16,339.03 points. But volume fell to 205.3 million shares, compared with 330.35 million shares traded on Tuesday, as investors stayed on the sidelines.
Trading value decreased by over Rs3 billion to Rs3.56 billion from Rs6.67 billion a day earlier and market capitalisation stood at Rs4.061 trillion, compared with Tuesday’s Rs4.062 trillion.
“The KSE-100 index shed 11 points to close at 16,257 points with market trading in a narrow range. Volumes were biased towards third tier stocks particularly cement and textile sector scrips, with investors preferring to book profit in the latter.
Amongst the blue chips, Engro was a notable gainer on expectation of additional gas supply,” said Raza Jafri, head of research at AKD Securities Ltd.Apart from Maple Leaf Cement, most other cement stocks were under pressure as investors squared their positions following gains in previous days.
Maple Leaf was in the limelight after a report that suggested an improvement in its earnings.
“Our analysis suggests that Maple Leaf, with higher degree of total leverage (DTL), earnings growth will be higher than its peers,” said Farhan Mahmood from Topline Securities Ltd.
“Law and order situation on domestic front and Middle East warfare on international front cannot be ignored keeping in view local and regional stability, however expectations of further cut in interest rate will keep low multiples and high yields, turnaround stories an attraction for the local and off-shore participants,” said Hasnain Asghar Ali from Escorts Capital.
Foreign investors bought shares worth a net $183,284 on Wednesday, compared with $3.7 million the previous day, bringing the total net buying for this month to $25.92 million. But mutual funds were the major sellers with equity worth $1.92 million.
The market capitalisation based KSE 30-index also ended lower as it shed 0.27 per cent, or 35.57 points, to close at 13,201.18 points.
Out of the 370 companies traded, the value of 179 increased, 163 decreased, while 28 remained unchanged.
The biggest gainers and losers were as follows: on the plus side, Island Textile was up by Rs34.36 to Rs721.70, followed by Bhanero Textile, which was up by Rs11.30 to Rs237.30. On the declining side, Bata Pakistan lost Rs27.5 to Rs1,352.50 and Indus Dyeing decreased by Rs11.07 to Rs538.91.
The list of volume leaders included mainly middle to third tier shares: KESC was up 51 paisa to Rs6.16 on 36.53 million shares, Fauji Cement fell 0.07 paisa to Rs6.7 on 23.69 million shares and Jahangir Siddiqui Co ltd ended 23 paisa higher at Rs16.10 on 12.3 million shares.
Maple Leaf Cement rose 30 paisa to Rs14.25 on 9.25 million shares, Azgard Nine ended 2 paisa higher at Rs8.28 on 9.1 million shares and Byco Petroleum rose 38 paisa to Rs9.58 on 7.67 million shares.
Worldcall Telecom gained 13 paisa to Rs2.83 on 7.18 million shares. JS Bank Ltd shed 24 paisa to Rs5.7 on 4.9 million shares and Quice Food ended 39 paisa lower at Rs10.42 on 4.63 million shares.
Kohinoor Ind gained 35 paisa to end at Rs3.56 on 4.19 million shares.
 Company news:
TEXTILE: Textile export rebounds: ISLAMABAD, Nov 21: Pakistan’s export of textile and clothing rebounded for the second consecutive month after posting a decline for at least one year.
The increase was mainly driven by a surge in demand from recession-hit key markets of Europe and US, suggested data of Pakistan Bureau of Statistics released here on Wednesday.
In absolute terms, export of textile and clothing witnessed a growth of 10.50pc in October 2012, from a year ago.
The growth in export proceeds in September 2012 was 12.91pc.
The unprecedented growth was mainly driven by substantial increase in export proceeds of readymade garments, towels, and other low value products, like cotton yarn and cotton cloth, etc.
Also export of raw cotton witnessed an increase in October this year over last year.
Experts linked growth in export of value-added products with spillover effect from China and Taiwan’s labour issue as about two or three per cent spillover from China alone was more than enough for Pakistan’s exporters to meet it; the announcement of waiver on 75 products from EU from Nov 15 encouraged European buyers to re-develop contacts in Pakistan. Major European buyers are eying to yield benefits in case EU granted Pakistan GSP plus status in 2014.American buyers also re-establishing
contacts with Pakistan’s textile and clothing exporters after disruption in supply from Egypt.
Export of textile and clothing reached $4.392bn in July-October period this year, up by 4.78pc from $4.192bn over the corresponding period of last year.
As a result of performance of textile and clothing sector, overall exports also witnessed 4.98pc growth in the first four months this year as it stood at $8.202bn this year as against $7.814bn over the corresponding period last year.
A sector-wise analysis showed that export of readymade garments went up by 29.29pc, knitwear 4.37pc and towels 12.27pc in October this year over last year.
Export of low value-added products, like cotton yarn was up by 28.88pc, cotton cloth 16.37pc, yarn other than cotton yarn 228.25pc, tents 17.61pc and other textile material 31.89pc in October this year over same month last year.
Industry sources said persistent supply of gas for five consecutive days in July-October period to textile sector produced the desired results.
The growth in yarn and fabric exports was mainly because of improved energy supply.
The full capacity utilisation of production caused growth in export of home textile — towels and bedwear as well.
This shows that in case of uninterrupted supply of energy, export of textile products would increase manifold.
Similarly, export of raw cotton also increased by 23.06pc in October this year. Cotton production is expected to increase this year following arrival of new crop in the market. Cotton crop arrival has started since October.
Contrary to this, over 22pc increase was also witnessed in terms of rupee owing to its depreciation against the dollar in the past few months, indicating that the fall in the health of rupee supported Pakistani textile and clothing products to penetrate in the international markets.
In October, exports witnessed a growth of over 21pc which clearly indicates that depreciation helped export proceeds to compete with other countries products.
At the same time, there was a 13.14pc increase in import of machinery in the value-added sector to increase quality and capacity of production. This indicates that local manufacturers were also expanding their production capacity.
Attock Petroleum eyes Chevron’s assets: KARACHI, Nov 21: The Board of Attock Petroleum Limited (APL) has decided to conduct due diligence in as it looks toward the possibility of buying Chevron’s downstream fuel assets in Pakistan and Egypt.
“The decision to participate in the proposed acquisition or not and other formalities, terms and conditions will be finalized subject to satisfactory completion of due diligence and Board of Director’s approval” the company stated in a notice released at the Karachi Stock Exchange early Wednesday.
An oil sector analyst said that Chevron Pakistan Limited (formerly Caltex Oil Pakistan Limited) is a part of Chevron Corporation, one of the leaders in the global integrated energy business. Chevron is headquartered in San Ramon California.
Following the merger of its parent companies – Chevron and Texaco – in 2001 and subsequent change of the parent company’s name from Chevron Texaco to Chevron in 2005, Caltex Oil Pakistan Limited was renamed as Chevron Pakistan Limited in 2006.
The company has operated in the sub-continent since 1938. It is presently engaged in the Fuels, Lubricants, CNG and LPG
business in Pakistan. The company is marketing its products and services under the Caltex master brand.
Chevron Corporation was believed to be mulling sale of downstream assets in Egypt, Pakistan and Australia, since March this year. Downstream assets consist of refining, marketing and retail sales outlets.
The news was greeted at the Karachi stock exchange on Wednesday with lukewarm investor interest. Some activity was witnessed in the Attock group companies but the expensive Attock Petroleum stock itself rose by just 1 per cent or Rs5.89 to Rs504.56 on a negligible turnover of 12,700 shares.

MOHAMMED SALEEM MANSOORI