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Tuesday, 11 December 2012

STOCK MARKET UPDATE: 12.12.2012



STOCKS
Karachi Stocks Down 90.69 Points:
KARACHI, Dec 11: At the close of trading, the KSE-100 index was at 16696.85, down 90.69 points.
 (Today Market is 83.92 Up@ 10.36am)

December 11, 2012
 5 TOP GAINERS  &  LOOSERS:

Unilever Pak
Rs 96.83
Bata (Pak)
Rs (80.00)
Sanofi Aventis
Rs 16.00
Nestle Pak
Rs (40.00)
PICT
Rs 11.42
Shezan Int’l
Rs (22.00)
Salfi Textile
Rs 7.09
Exide Pak
Rs (10.91)
Service Industries
Rs 6.99
National Foods
Rs (9.57)

 Index loses 86 points on foreign selling

KARACHI, Dec 11: Stocks ended lower on Tuesday on foreign selling amid lack of any positive news flow and dealers said investors were cautious ahead of the monetary policy announcement.
Foreign investors sold shares worth a net $8.2 million on Tuesday, compared with a net inflow of $1.12m the previous trading session, bringing the total for the month to an outflow of $6.21m.
The KSE 100-share index ended 0.51 per cent, or 85.85 points, lower to 16,701.69 points. Turnover again decreased to 127 million shares, compared with 189.1m shares traded on Monday. Trading value fell by Rs1.4 billion to Rs3.48 billion from the previous trading session’s value of Rs4.06bn.
Market capitalisation eased to Rs4.19 trillion from Rs4.21tr.
“Stocks closed bearish amid thin trade. Profit-taking continued in scrips across the board as investors await the SBP policy rate announcement on Dec 14,” said Ahsan Mehanti from Arif Habib Ltd.
Analysts expect a cut of at least 50 basis points to 9.5 per cent but economic concerns remain as the rupee made a fresh record low of Rs97.30 on Tuesday.
It made an all-time low despite an increase in remittances. The pressure on the rupee is expected to remain due to the country’s depleting foreign exchange reserves.
“Declining value of the rupee against US dollar also affected market sentiments,” said Mohammad Rizwan, senior manager equity sales at Topline Securities Ltd.
There is also concern that Pakistan may turn to the IMF for another loan programme.
According to reports, International Monetary Fund officials are expected to come to Islamabad later this month to hold talks on a new economic stabilisation programme.
IMF in its latest report said that Pakistan’s central bank’s monetary policy should be more focused to contain inflation and external risks.
Banks bought shares worth a net $1.76m but individuals were the major buyers with equity worth a net $4.17m.
The biggest gainer was Unilever Pakistan which rose Rs96.83 to close at Rs9,897.83, followed by Sanofi-Aventis Pakistan which ended Rs16 higher at Rs368.
Bata Pakistan witnessed the biggest loss for the second consecutive day as it shed Rs80 to Rs1,530 followed by Nestle Pakistan, which shed Rs40 to close at Rs4,800.
The KSE-30 index ended 0.43pc, or 58.05 points, lower at 13,542.02 and out of the 369 companies traded, the value of just 95 increased, 254 decreased while 20 remained unchanged.
“Trading volume squeezed to mid cap stock which includes JSCL, MLCF and SNGP. No outcome of the ECC meeting dragged Engro Corporation in the negative zone,” said Rizwan from Topline.
Among the 10-top traded stocks, Jahangir Siddiqui Co Ltd ended lower by 57 paisa at Rs17.26 on turnover of 13.89m shares, Maple Leaf Cement fell 12 paisa to Rs13.79 on volume of 8.86m shares and Sui North Gas closed Rs1.84 lower at Rs23.41 on 7.79m shares.
Fauji Cement ended 13 paisa lower at Rs6.45 on 7.21m shares, Engro Foods rose 98 paisa to Rs93.55 on 5.59m shares, and Lotte PakPTA fell 29 paisa to Rs7.65 on 5.24m shares.
Engro Corporation shed Rs2.91 to close at Rs93.49, Byco Petroleum fell 41 paisa to Rs10.77 on 4.12m shares and Azgard Nine ended 21 paisa lower at Rs8.42 on 3.41m shares.
Nishat Chunnian gained 28 paisa to Rs33.79 on nearly 3 million shares.
Company news:
DHCL pulls out of share sale deal: KARACHI, Dec 11: The board of directors of Dawood Hercules Corporation (DHCL) announced on Tuesday that the company was pulling out of a possible sale deal of Dawood Hercules Fertilisers Limited to Pakarab Fertiliser Limited.
An MoU was executed between DHCL and Pakarab Fertilisers Limited in relation to a possible sale of DHCL’s entire shareholding in DH Fertilisers Limited to Pakarab.
DHCL while deciding to back off from the deal recalled that the consummation of the Transaction under the Memorandum of Understanding (MoU) was subject to entering into definitive agreements and under the MoU the parties made no binding agreement in relation to the Transaction.
“Till date no definitive agreement has been entered into,” DHCL said on Tuesday.
In the meeting of the Board of DHCL held a day earlier, it was decided that the company did not wish to pursue the Transaction for “commercial reasons”. The directors said that the company had also informed Pakarab of its intention to discontinue the negotiations in relation to the transaction.
Earlier in the meeting on Sept 15, this year, the DHCL Board had approved the execution of MoU by and between DHCL and Pakarab. As per the terms of that MoU, DHCL had “intended to sell and Pakarab intended to purchase” DHCL’s entire shareholding of 100 million shares of Rs10 each in DH Fertilisers Limited.
The consummation of the transaction, however, was stated to be subject to execution of definitive agreements and “such approvals as may be required to give effect to the sale.”
NBP briefing: KARACHI, Dec 11: The National Bank of Pakistan (NBP) was catering to the needs of more than 2.1 million out of three million pensioners through its 1,290 plus branch network and it has approximately 1.8 million salary accounts of government employees, employees of public sector institutions, provincial governments and local bodies etc.
This was told at a media briefing held at NBP Headquarters on Wednesday and apprised them about the performance of the bank and its achievements as public sector financial institution.
According to Syed Ibne Hassan Divisional Head Corporate Communications/Spokesman of the bank, the briefing was conducted by Adnan Adil Hussain, Senior Vice President and Head Consumer and Retail Banking Division, NBP, and apprised the media about NBP’s recent achievements and initiatives.—APP
 
4 urea makers get 45pc less gas: LAHORE, Dec 11: The gas supplies to four urea plants operating on the Sui Northern Gas Pipeline Limited (SNGPL) network have been curtailed by 45 per cent in the first 11 months of this year to November from last year, according to the industry sources.
The sources said the four producers had suffered production losses of between 70 to 80 per cent.
The details of gas supply provided by the industry show that the fertiliser plants – Pakarab Fertilisers, Dawood Hercules, Agritech and Engro Fertilisers – on the SNGPL network received 16,874mmcfd gas this year, or just 55 per cent 30,576mmcfd gas supplied to them last year.
In 2011, Pakarab received a total of 8,278mmcf, Dawood Hercules 6,513mmcf, Agritech 3,142mmcf and Engro 12,643mmcfd.
In 2012, according to an agreement with the SNGPL, the fertiliser plants were to receive gas on a 15-day rotation. “The plants were divided into two pairs and were to operate on a rotation. However, as the gas supply gap worsened, the SNGPL put the agreement aside. So the supplies were almost halved with Engro receiving 6,490mmcf, Pakarab 4,941mmcf, Dawood Hercules 2,788mmcfd and Agritech 2,655mmcf,” an executive of one of the affected urea companies, who refused to give his name, said on Tuesday.
According to him, the gas curtailment to the urea plants has further increased since July with Agritech and Pakarab operating only for 30 days and Dawood Hercules for 15 days in five months.
The gas shortages for the urea industry and consequent losses suffered by some of the companies have spawned rivalry amongst the producers with each vying for a greater share from whatever supplies were available for producing urea.
“You may note that among the four plants operating on the SNGPL network, Engro is the single largest consumer and requires 100mmcfd, which is almost 75 per cent of the cumulative requirement of 135mmcfd of the other three urea producers.
Besides, Engro Fertilizers, a subsidiary of Engro Corporation, has the advantage of two independent sources for its gas that enabled it to post profit of Rs4.5 billion in 2011. In 2012, one plant of Engro has operated uninterrupted while others on the SNGPL are likely to report losses,” the anonymous executive said.
Pakarab, Agritech and Dawood Hercules have suffered huge losses owing to gas curtailments during the current year, he said. Being solely dependent on the SNGPL network for its feedstock gas, Pakarab alone has remained shut for 250 days out of 325 days in 2012.
The industry sources say the gas shortages for the urea producers, who have invested $5 billion in last five years, will not only create supply gap of the fertilizer and force the government to import the chemical at the cost of deterioration of its external account but also hurt livelihood of 10,000 people.
“We are unable to understand as to why the fertiliser sector has been relegated to 4th position on the priority list from 2nd place after domestic users under the gas policy of 2005 and the power sector and industry being given priority over it,” he wondered.
The government had imported urea worth $1.1 billion in 18 months from January 2011 to June 2012 and bore a subsidy of Rs75 billion on the imported fertiliser.
MOHAMMED SALEEM MANSOORI

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