STOCK MARKET UPDATE: 22.01.2013

STOCKS

Karachi Stocks Up 32.86 Points:
KARACHI, Jan 21: At the close of trading, the KSE-100 index was at 16634.63, up 32.86 points.

(Today Market is 85.76 Up@ 10.52 am)

January 21, 2013

5 TOP GAINERS  &  LOOSERS:

Bata (Pak)	Rs 20.00	Rafhan Maize	Rs (185.00)
Mithchells Fruit	Rs 15.00	Unilever Food	Rs (178.00)
Indus Dyeing	Rs 11.00	UniLever Pak	Rs (69.67)
Philip Morris Pa	Rs 5.71	Nestle Pakistan	Rs (45.00)
Service Industries	Rs 5.02	Millat Tractors	Rs (9.49)

Stocks extend overnight gains

KARACHI, Jan 21: Stocks ended higher on Monday as investors went on buying spree ahead of the earnings season on hopes of strong corporate profits for the December end quarter, due to be announced in the coming days, dealers said.
The KSE 100-share index ended 0.24 per cent, or 39.04 points, higher at 16,640.81 points. It traded in a narrow range as it made an intra-day high and low at 16,683.05 and 16,593.53, respectively.
Turnover decreased to 128.25 million shares, compared with 181.72m shares traded on Friday and trading value fell to Rs3.73 billion from Rs4bn in the previous trading session. However, market capitalisation stood at Rs4.15 trillion, slightly higher than Friday’s Rs4.14tr.
“Selective stock picking was seen at Karachi Market after no major political noise over the weekend. MLCF and FCCL remained in the limelight in expectation of better Dec quarter results. FFC (Fauji Feriliser) also performed well ahead of its December result. Interest was also seen in closed end funds as most them have already announced their meetings to decide whether to open or revoke,” said Samar Iqbal, a dealer at Topline Securities Ltd.
Dealers said bargain investors were accumulating selective stocks especially from the cement and textile sectors. The exploration and production sector also helped the market hold onto its gains as OGDC rose Rs1.32 to Rs186.88.
“Earnings euphoria kept the sentiments positive through out the session, roll-over pressure did restrict the upside wherein stocks having a high roll-over float did stay in the red zone mainly from cement and textile sectors while banking, fertiliser and E&P on likely growth in earnings and sensation of payouts kept the liquidity poised for accumulation, despite worrisome comments from international lenders and rating agencies, terming the existing political volatility likely threat for securing fresh loans from IMF,” said Hasnain Asghar Ali from Escorts Capital Ltd.
Foreign investors indulged in fresh buying on Monday as they bought shares worth a net $872,230 after selling a net $1.11 on Friday, bringing the total for this month at $4.84m.
Individuals were the major buyers with equity worth $2.54m.
The biggest gainer was Bata Pakistan which ended Rs20 higher at Rs1,250, followed by Mitchell’s Fruit Ltd which closed Rs15 higher at Rs395. Rafhan Maize witnessed the biggest loss as it shed Rs185 to Rs3,515 followed by Unilever Food, which ended Rs178 lower at Rs4,000.
The KSE-30 index ended 0.28pc, or 38.15 points, higher at 13,580.35.
Out of the 334 companies traded, the value of 156 increased, 146 decreased while 32 remained unchanged.
The second and third tier companies dominated the 10 most active traded stocks, whereas the cement sector remained in the limelight: Maple Leaf Cement topped the list as it ended 28 paisa higher at Rs15.92 on turnover of 16.12 million shares, Fauji Cement fell marginally 7 paisa to Rs7.30 on 13.58m shares and Byco Petroleum shed 8 paisa to Rs13.90 on 8.72m shares.
Jahangir Siddiqui Company Ltd fell 40 paisa to close at Rs15.30 on 8.6m shares, JS Growth Fund gained 94 paisa to Rs9.99 on 7m shares and TRG Pakistan ended 18 paisa lower at Rs6.93 on 6.5m shares.
Engro Foods increased by 30 paisa to Rs99.23 on 4.27m shares, Dewan Cement gained 6 paisa to Rs5.01 on 3.47m shares and National Bank of Pakistan fell 27 paisa to Rs48.82 on 2.86m shares.
Attock Refinery ended 59 paisa lower at Rs164.53 on 2.82m shares.

KSE-NCCPL on MT Eligible Securities

KARACHI, Jan 21: The National Clearing Company of Pakistan (NCCPL) issued the list of Securities Eligible for Margin Trading (MT) System, on Monday. The securities, which would be eligible for MT from Feb 21, were notified in accordance with the Regulation 7C.3.3, of the NCCPL Regulations.
The eight securities identified included: Cherat Cement Company, Dawood Hercules Corporation; Fauji Cement Company, Kot Addu Power Company, Nishat (Chunian) Limited, Nishat Chunian Power, Netsol Technologies and Nishat Power.
Simultaneously, the Karachi Stock Exchange issued ‘Revised list of Margin Eligible Securities acceptable as Collateral for all markets’ with effect from Monday Feb 25. KSE stated that in terms of regulation 4.6(h) of the Regulations revised list of 75 ME Securities (list available with notice on http://www.kse.com.pk) would be acceptable as collateral by the Exchange after giving at least thirty days advance notice.
Moreover, the Exchange stated that it was also accepting T-Bills and electronic units of CDC eligible open-ended funds which were categorised as Money Market Schemes in accordance with the criteria prescribed by the Commission vide its circular No 7 dated Mar 6, 2009 as collateral for all Markets. The list of 14 eligible open-ended funds was provided (also available on KSE website as annexure-B). Also in terms of the definition of Bank Guarantee acceptable as collateral under the Regulations, the list of eligible Banks of which the Bank Guarantee would be accepted, were identified. (also enclosed as annexure-C with notice on KSE website).
The KSE notice for ‘TREC holders/brokers’ ended with the advice “to update collateral deposited with Exchange in terms of new ME Securities before Feb 25, failing which the Exchange reserves the right to value non-eligible ME Securities as ZERO on or after the effective date”.

Company News:

Changes in Companies Regulations proposed: ISLAMABAD, Jan 21: The Securities and Exchange Commission of Pakistan (SECP) has proposed to reduce late fees in a bid to encourage compliance rate by companies.
The amendments have been proposed in the 2003 Companies (Registration Offices) Regulations under which a substantial reduction in the additional fees for late submission of statutory returns, annual accounts and other documents filed by the companies has been proposed.
As per current regulations, on late filing of documents, heavy additional fee is being charged which might be a reason for non-compliance and low rate of filing of overdue statutory returns by companies.
Additional fees which are required to be paid as one time for a delay of not more than 15 days, two times for a delay of not more than 45 days and three times for delay of more than 45 days, shall now be paid as one fourth times for a delay not more than one month, one half times for a delay not more than six months, equal to usual fee for a delay not more than one year, one and half times for a delay not more than two years, two times for a delay not more than three years, two and half times for a delay not more than four years and three times for a delay of more than four years.
The SECP has thus proposed that the additional filing fee may be revised by spreading the period of filing of delayed statutory returns over a period of four years in seven steps, instead of just 45 days as contained in the existing regulations. The draft amendments have been published in the official gazette vide SRO No 23 (I)/2013 for information of all persons likely to be affected thereby.
The SECP has said that the objections and suggestions received within 14 days would be considered by the Commission, and the SRO 23 (I)/2013 has also placed at the SECP website.

MOHAMMED SALEEM MANSOORI