STOCK MARKET UPDATE:21.02.2013

STOCKS

Karachi Stocks Up 125.46 Points:
KARACHI, Feb 20: At the close of trading, the KSE-100 index was at 17943.17, up 125.46 points.

(Today Market is 3.23 Up@ 11.27 am)

February 20, 2013

 5 TOP GAINERS  &  LOOSERS:

Nestle Pakistan	Rs 99.99	UniLever Pak	Rs (23.90)
Colgate Palmolive	Rs 75.00	Indus Motor Co	Rs (6.55)
Saphire Textile	Rs 11.87	Abbott Lab.	Rs (4.11)
Packages Ltd.	Rs 9.26	Aquarius Industries	Rs (3.94)
Sunrays Textile	Rs 8.49	Indus Dyeing	Rs (3.86)

High volumes push KSE closer to 18,000 mark

KARACHI: Pakistan’s stock market closed higher on Wednesday with rising turnover. The market came close to 18,000 points due to continuous foreign buying.
Volume traded crossed Rs.9 billion with active role played by institutions and high-net-worth individuals.
Engro Foods closed near its upper limit due to institutional buying. Large cement companies like DG Khan Cement and Lucky Cement also rallied in expectations that profit will further increase in this quarter, said Samar Iqbal at Topline Securities.
The Karachi Stock Exchange’s (KSE) benchmark 100-share index ended 0.73 per cent, or 129.36 points, higher at 17,947.07. The index touched a high of 17,989.93 points during the day’s trading.
DG Khan Cement rose 3.92 per cent to 62.00 rupees and Engro Foods was up 4.99 per cent to 125.08 rupees.
In the currency market, the rupee ended at 98.04/98.09 against the dollar, stronger than Tuesday’s close of 98.16/98.21.
Overnight rates in the money market were flat at 7.25 percent
Stocks at KSE maintain upward trend; close just below 18000: KARACHI: The prices of local equities at Karachi Stock Exchange (KSE) closed higher on Wednesday with rising turnover.
The benchmark 100-share Index came close to 18,000 points due to continuous foreign buying. The main Index ended 0.73 percent, or 129.36 points, higher at 17,947.07.
Volume traded crossed Rs.9 billion with active role played by institutions and high-net-worth individuals. Engro Foods closed near its upper limit due to institutional buying.
Large cement companies like D.G.Khan Cement and Lucky Cement also rallied in expectations that profit will further increase in this quarter, said a stock dealer.
D.G.Khan Cement rose 3.92 percent to 62.00 rupees and Engro Foods was up 4.99 percent to 125.08 rupees. (Reuters)

Textile City, KESC sign accord

KARACHI, Feb 20: Pakistan Textile City and Karachi Electric Supply Corporation (KESC) on Wednesday signed an agreement for 50 MW uninterrupted power supply.
Pakistan Textile City Chairman Mirza Ikhtiar Baig and KESC Managing Director Nayyer Hussain signed the agreement at the KESC Head Office.
In the first phase the KESC will supply 50 MW uninterrupted power supply from its Bin Qasim Grid Station to the textile city and industries at Port Qasim. In the second and third phase the power supply will be increased to a total 250 MW.—APP

BMA Capital fined Rs50 million

LAHORE, Feb 20: The Security and Exchange Commission of Pakistan (SECP) has slapped a hefty fine of Rs50 million on a Karachi-based brokerage house for indulging in unfair trade practices to make huge profit of Rs46 million in a matter of just a few days at the expense of its clients.
It is for the first time that the commission has imposed such hefty fine on a brokerage house. It has also instructed the brokerage house, the BMA Capital Management, to deposit the fine within 30 days of the issuance of the order on Feb 19.
The SECP order shows that the BMA had purchased 578,000 shares of Bata from the National Bank of Pakistan (NBP) on Aug 24 last year in the off market at a negotiated price of Rs920 in its proprietary account.
The shares were purchased at a premium of 16.6 per cent. The share was being traded at Rs789 on Aug 17 the day negotiations for the deal were initiated.
On Aug 29-30, the BMA sold 587,500 shares of Bata to a foreign investor, BAFIN (Nederland) B.V., an associate company of Bata Pakistan, at the negotiated price of Rs1,000 a share in off market, amassing a profit of Rs46 million.
Forensic analysis of the two deals by the commission and a subsequent inquiry into the matter revealed that BAFIN was maintaining a trading account with the BMA since July 2011 and was trading only in the shares of Bata.
BAFIN had already accumulated 562,366 shares from the ready market and off market since its opening of the account with the BMA, which was aware that it would buy more shares if given an offer at an agreed price.
In its reply to the show cause issued by the commission, the BMA denied having violated any law or rule by conducting proprietary trade. It further said that BAFIN was fully aware of it deal with the NBP and agreed to purchase the shares at the negotiated price of Rs1,000 a share.
However, according to the SECP order, it failed to produce any documentary evidence to support its assertion. In fact, the order adds, in its first reply the BMA had admitted that BAFIN had instructed it to negotiate with the NBP (to purchase Bata shares from it) at a lower price. But later changed it stance, insisting that it had acted as an independent buyer and seller and not as an “agent of the third party” while closing the deals with the NBP and BAFIN.
The commission also notes that while making the deals the BMA had failed to disclose if it was acting as a principal or as an agent and gave preference to its own interests at the expense of the NBP and BAFIN.
It said the profit raked up by the BMA was the loss suffered by either the NBP or BAFIN. The commission said it was established that the BMA had failed to fulfil its primary responsibility of following best market practices while executing the transactions and to safeguard the interest of its clients.
It was the duty of the BMA to avoid the conflict of interest and in this particular case the BMA failed to perform this duty by executing these deals and also to maintain high standards of integrity and moral values, the order said.

Company News:

OGDCL posts 20pc surge in net profit

Meezan Bank posts profit: KARACHI - Meezan Bank Limited has earned profit-after-tax of Rs. 3.5 billion in 2012 compared to Rs 3.4 billion recorded last year. The Earnings per Share (EPS) increased to Rs 3.88 from Rs. 3.75 for 2011.
The Board recommended issue of 11pc bonus shares for the year 2012.
This declaration together with the earlier cash dividend of 15pc paid in August 2012 brings the total payout for the year to 26pc (2011: 22.5pc) and maintains the Bank’s unbroken payout record since its date of listing on the Stock Exchange.
The bonus issue will increase the bank’s paid up capital to Rs. 10 billion and the Bank will meet SBP’s minimum capital requirement for 2013 of Rs 10 billion a year in advance.
The Board of Directors’ of Meezan Bank Limited in its meeting held at Karachi on February 19, 2013 approved the financial statements of the Bank for the year ended December 31, 2012. The meeting was presided by Sheikh Ebrahim Bin Khalifa Al-Khalifa, Chairman of the Board. Vice Chairman of the Board Abdul Lateef A. Al-Asfour

MOHAMMED SALEEM MANSOORI