STOCK MARKET UPDATE: 13.02.2013

STOCKS

Karachi Stocks Up 68.33 Points:
KARACHI, Feb 12: At the close of trading, the KSE-100 index was at 17616.87, up 68.33 points.

 (Today Market is 86.21 Up @ 11.04 am)

February 12, 2013

 5 TOP GAINERS  &  LOOSERS:

Unilever Food	Rs 100.00	Unilever Pak	Rs (50.00)
Nestle Pak	Rs 30.00	Bata Pak	Rs (28.00)
Sapphire Textile	Rs 11.78	Mithchells Fruit	Rs (17.50)
National Foods	Rs 11.35	Colgate Palmolive	Rs (10.00)
Gatron Ind	Rs 6.98	Shezan Int’l	Rs (5.00)

KSE-30 index recomposed

Karachi, Feb 12: The Karachi Stock Exchange has re-composed the KSE-30 index. The market capitalisation based 30 share index greeted two new companies in its fold.
They include Askari Bank Limited and ICI Pakistan, which replace the outgoing Unilever Pakistan and Dawood Hercules Corporation Limited.
The stock exchange stated that the re-composed index, based on prices of December 31, 2012 would be implemented w.e.f Feb 16.
The KSE 30 market capitalisation based index include the following: Fauji Fertiliser, OGDC, POL, PPL, MCB Bank, Engro
Corporation, Lucky Cement, D.G. Khan Cement, PSO, Engro Foods, NBP, Hub Power Company, Nishat Mills, Attock Refinery, UBL, Fauji Fertiliser Bin Qasim, Fatima Fertiliser, PTC, Jah Siddi Co, Bank Al Habib, HBL, Bank Alfalah, Adamjee Insurance, Millat Tractors, Arif Habib Corporation, NRL, Kapco, Attock Petroleum, ICI and Askari Bank.
Bull-run on, index hits fresh peak: KARACHI, Feb 12: Stocks continued bull-run on the local bourse to close at a record high on Tuesday led by buying in the banking sector and oil marketing companies, dealers said.
The KSE 100-share index ended 0.36 per cent, or 62.86 points, higher at 17,611.40 points. It made a fresh all-time high at 17,657.94 points and an intra day low at 17,542.72 points.
Turnover fell to 236.32 million shares, compared with 278.25 million shares traded on Monday but trading value increased to Rs6.9 billion from Rs6.54bn in the previous trading session.
Market capitalisation stood at Rs4.40 trillion from Monday’s Rs4.39tr.“Market activity continued to be dominated by small scrips (FCCL, MLCF, TRG, LOTPTA). Among major scrips, PSO gained on rumours that marketing margins may come in for increase. Large banks also came in for buying interest in the ongoing results season,” said Raza Jafri, head of research at AKD
Securities Ltd.
The Economic Coordination Committee is scheduled to meet on Wednesday and is expected to discuss the margins of oil marketing companies.
This spurred investor activity in OMC shares and Pakistan State Oil ended Rs4.59 higher at Rs234.62 and Shell Pakistan gained Rs6.60 to close at Rs138.73.
MCB Bank and National Bank of Pakistan also remained in the limelight as investors hoped for strong full year profits which are due to be announced in the coming days.
MCB Bank rose Rs2.32 to end at Rs213.43 and NBP increased Rs2.36 to close at Rs53.67.
The exploration and production sector, which led the rally the previous day, witnessed profit-taking on Tuesday as Oil and Gas Development Co Ltd fell 19 paisa to Rs198.56 and Pakistan Oilfields shed Rs3.66 to Rs473.67.
Foreigners remained net buyers as they bought shares worth a net $2.08 million on Tuesday, compared with a net buying of
$2.63 million on Monday, bringing the total net buying for the month at $6.62m.
The total for January stood at net buying of $15.42m. Mutual Funds were the biggest sellers with equity worth $1.66 million.
The biggest gainer was UniLever Food which ended Rs100 higher at Rs4,200, followed by Nestle Pakistan which closed Rs30 higher at Rs5,030. UniLever Pakistan Ltd witnessed the biggest loss as it shed Rs50 to Rs10,350, followed by Bata Pakistan, which ended Rs28 lower at Rs1,457.
The KSE-30 index ended 0.42pc, or 60.71 points, higher at 14,386.15.
Out of the 346 companies traded, the value of 152 increased, 172 decreased while 22 remained unchanged.
The second and third tier shares once again dominated the 10 most active traded stocks:
Fauji Cement topped the list as it rose 24 paisa to Rs8.21 on turnover of 36 million shares, Maple Leaf fell 22 paisa to close at Rs17.83 on 17.1m shares and TRG Pakistan Ltd fell 13 paisa to close at Rs8.13 on 17m shares.
Lotte PakPTA ended 12 paisa higher at Rs7.97 on 15.87 shares, National Bank of Pakistan ended Rs2.36 higher at Rs53.67 on 10.34m shares but Engro Foods Ltd shed Rs4.31 to close at Rs120.04 on 7.55m shares.
Jahangir Siddiqui Co Ltd fell 28 paisa to Rs17.50 on 7.07m shares, WorldCall Telecom ended marginally lower by 1 paisa to Rs3.37 on 6.9m shares and KESC decreased by 29 paisa to Rs5.99 on 6.33m shares.
DG Khan Cement gained 90 paisa to close at Rs56.39 on 5.84m shares.
KSE 100-share Index gains 62 points to close at 17,611: KARACHI: Equities prices at Karachi Stock Exchange (KSE) closed higher on Tuesday in a rally led by the banking sector, traders said.
The KSE benchmark100-share index ended 0.36 percent, or 62.86 points, higher at 17,611.40.
National Bank of Pakistan climbed by 4.29 percent to 53.51 rupees and Muslim Commercial Bank percent to hit 213.49 rupees.
In the currency market, the rupee ended weaker at 98.06/98.11 against the dollar, compared to Monday's close of 97.96/98.01. The rupee had come under pressure after Pakistan made a $145 million payment to the IMF, dealers said.
Overnight rates in the money market rose to 9.40 percent compared to Monday's close of 9.25 percent.

Foreigners hold 30pc market float

KARACHI, Feb 12: Foreign investment in the country’s capital market is generally dismissed as of little consequence. Yet the influence of off-shore equity investment in the local bourses is growing, as almost 30 per cent of the free-float (shares available in the market for trading) is currently owned by the foreign investors.
The market capitalisation has peaked to $44.8 billion of which free float is believed to be worth $11 billion. According to the SBP data, foreigners own $3.2bn of Pakistani stocks (not including their stake in foreign’ sponsored companies).
The figure appears to be lower than the sum of $5.1 billion that foreigners had poured into the country’s equity market at the height of previous bull-run in April 2008. “But it has to be recalled that at the time foreigners’ holding was 24 per cent of the free float,” say analysts at brokerage firm, Topline Securities.
The spectacular rise in the KSE-100 index to 17,500 points in the last 13 months is subscribed in big measure by the local
institutional and individual investors.
They have, however, taken heart and are encouraged by the foreign investors’ sustained interest in the Pakistani equity market.
During the past week ended Friday, overseas investors bought net $5.9 million worth stocks, which followed on the heels of an equally heavy portfolio inflow of $5.6 million the earlier week.
Many investors stare at the heavy portfolio inflows with disbelief, as the foreigners’ holding at the record high level at this hour is regardless of security issues, weak macro economy and declining local currency.
Besides normal inflow of funds to emerging and frontier markets, cheap valuations and vibrant rural/informal economy are key factors attracting foreign fund managers’ portfolio allocation to the country’s capital market, analysts say.
The 13 scrips that seize much of the foreigners’ interest include OGDC in which overseas investors hold as much as 85 per cent of free float, MCB Bank (41pc), PPL (46pc), Unilever (59pc), UBL (49pc), FFC (14pc); Hub Power Company (14pc), POL (19pc)
Lucky Cement (34pc), Nestle (55pc), NBP (25pc) and Engro Corporation (25pc).
Foreign investors have mopped up $1.1bn or 85 per cent of the free float of OGDC, which leaves only 15pc or $200 million worth of stock with local investors.
The heavy-weight E&P company, which boasts market capitalisation of the gigantic size of $8.7bn and free-float of Rs1.3bn, has a commanding weightage in the KSE-100 index, which allows the company to set the tone of the market on any particular trading day.
The second highest investment of $300 to $325 million in free-float owned by foreigners is in the top-tier, MCB Bank. Capturing $300 million of free-float in Pakistan Petroleum, the stock ranks as the third favorite with foreigners.
In order to secure ease of entry and exit, foreigners prefer stocks with large market capitalisation and decent liquidity and float.
It may be for this reason that the top three foreigners’ favourite stocks (OGDC; MCB and PPL) account for more than half of their stake in Pakistan bourses.
Company News:
HBL earns Rs22bn profit: KARACHI, Feb 12: The Habib Bank on Tuesday reported a net profit of over Rs22 billion for 2012 led by lower provisioning and higher net interest income.
HBL also declared a cash dividend of Rs4 per share along with a 10 per cent bonus, it said in a statement.
The Bank said it earned a total profit of Rs22.35bn for the year ended Dec. 31, 2012, marginally higher from a net profit of Rs22.33bn last year.
The Bank announced to pay Rs4 cash dividend per share which is in addition to already paid Rs.3.5 per share cash dividend totalling the cash dividend as Rs7.5 per share for the year. According to JS Research report growth drivers in the bottom line were 1) lower provisions of Rs5.2bn (down 28 per cent YoY) and 2) better Net Interest Income (NII) of Rs56.1bn (up 2 per cent YoY).
Growth in NII is likely to be driven by growth in earnings assets.

MOHAMMED SALEEM MANSOORI