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Monday, 11 March 2013

STOCK MARKET UPDATE: 12.03.2013



STOCKS
Karachi Stocks Down 459.13 Points:
KARACHI, Mar 11: At the close of trading, the KSE-100 index was at 17505.05, down 459.13 points.
(Today Market is 192.30 Up@ 10.54 am)

March 11, 2013
 5 TOP GAINERS  &  LOOSERS:

Colgate Palmolive
Rs 45.99
UniLever Pak
Rs (280.00)
Sapphire Fiber
Rs 6.38
Bata (Pak)
Rs (45.00)
Faisal Spinning
Rs 3.10
Bhanero Tex.
Rs (14.55)
Sana Industries
Rs 2.40
National Foods
Rs (13.58)
Indus Motor Co
Rs 2.00
Exide (Pak)
Rs (12.22)
Stocks plunge by 441 points
KARACHI, March 11: Stocks tumbled by 440 points on Monday as investors were nervous about the implications of officially inaugurating construction work of a delayed $7.5 billion gas pipeline from Iran to Pakistan despite strong opposition from the US.
The KSE 100-share index ended 2.46 per cent, or 441.62 points, lower at of 17,522.56 points. It traded in an extremely broad range as it made an intra-day high at 18,036.90 points and low at 17,493.28 points.
Turnover was almost the same at 234.65 million shares, compared with 235.85 million shares traded on Friday and trading value increased to Rs8.23 billion from Rs8.07bn in the previous trading session.
Market capitalisation stood at Rs4.37 trillion from Friday’s Rs4.46tr.
“In other major development, ground breaking ceremony of $7.5bn Iran-Pakistan gas pipeline, today is creating uneasiness amongst the investors. Though the government has brushed aside concerns and pressures of US, investors are fearful of project’s implications on aid to Pakistan as well as its relations with other international donors,” said Nauman Khan from Topline Securities Ltd.
According to Khurram Schehzad from Arif Habib Research, the top five scrips contribute 61 per cent of the total fall: Oil and Gas Development Co Ltd -70.12 points, Fauji Fertiliser Co -56.89 points, MCB Bank -35.27 points, Engro -23.34 points and Hub Power Co Ltd contributed -16.5 points to the index.
Foreigners turned into net sellers as they sold shares worth a net $880,983 on Monday, compared with a net buying of $908,555.80 on Friday, bringing the total net buying for the month at $9.42 million.
The total for January stood at net buying of $15.42m. Mutual funds were the biggest sellers with equity worth $7.98 million.
The biggest gainer was Colgate Palmolive which ended Rs45.99 higher at Rs1,810 followed by Sapphire Fibre which closed Rs6.38 higher at Rs171.83. UniLever Pakistan witnessed the biggest loss as it shed Rs280 to Rs10,720, followed by Bata Pak, which ended Rs45 lower at Rs1,280.
The KSE-30 index ended 2.55pc, or 371.38 points, lower at 14,219.36.
Out of the 348 companies traded, the value of only 51 increased, 285 decreased while 12 remained unchanged.
The second and third tier companies dominated the 10 most active traded stocks: Pakistan Telecommunication Co Ltd fell 49 paisa to Rs20.27 on turnover of 20.64 million shares, Engro Corp shed Rs5,45 to Rs122.53 on 18.67m shares and Jahangir Siddiqui Co Ltd ended Re1 lower at Rs13.94 on 17.91m shares.
Fauji Cement decreased by 28 paisa to Rs7.90 on 13.53m shares, Nishat Mills shed Rs3.43 to Rs74.35 on 12.48m shares and Telecard Ltd closed 35 paisa lower at Rs5.40 on 11.94m shares.
Maple Leaf Cement fell 99 paisa to Rs16.13 on 11.03m shares, Lotte PakPTA ended 22 paisa lower to Rs7.29 on 8.37m shares and Byco Petroleum closed 22 paisa lower at Rs12.27 on 7.06m shares. NIB Bank Ltd shed 10 paisa to close at Rs2.20 on 6.95m shares.
Sanctions fear takes away 441 points from KSE: KARACHI: The prices of local equities witnessed a sharp decline at Karachi Stock Exchange (KSE) on Monday after a gas pipeline deal with Iran raised fears the United States would impose sanctions on Islamabad, dealers said.
The Karachi Stock Exchange's (KSE) benchmark100-share index ended 2.46 percent, or 441.62 points, lower at17,522.56 points.
"Across the board selling was witnessed as investors preferred to reduce their exposure before any negative news," said a stock dealer.
The presidents of Iran and Pakistan marked the start of Pakistani construction on a much-delayed gas pipeline on Monday, Iranian media reported, despite U.S. pressure on Islamabad to back out of the project.
Oil and Gas Development Company was down 4.01 Percent to 196.70 rupees. Foods and Fertilizer Engro Corporation fell 4.59 percent to 122.11 rupees, while Fauji Fertilizer was down 4.3 percent to 106.99 rupees. (Reuters)

Share sale in demutualised bourses after polls
LAHORE, March 11: The Securities and Exchange Commission of Pakistan is holding back its plans to approach international strategic buyers and local investors to sell the remaining 60 per cent shares in the country’s demutualised stock exchanges in view of general elections expected in May.
“With the country going into elections in a couple of months, it is not right time to approach international buyers for acquiring a stake in our bourses. Once the elections are over, we will be able to bring in them,” SECP Chairman Mohammad Ali said while talking to a select group of economic journalists here on Monday.
He said the presence of the international buyers as stakeholders on the bourses’ boards would bring more transparency and products for capital market investors.
The commission has already sold 40 per cent ownership rights of the demutualised bourses to the brokers as part of corporatisation and demutualisation of the country’s capital markets under the Stock Exchanges (Corporatisation, Demutualisation and Integration) Act, 2012.
“We plan to sell 40 per cent of the remaining stake in the bourses to international strategic buyers or international stock exchanges and offer 20 per cent to the local investors,” the SECP chairman added.
He said demutualisation had reduced conflicts visible in the mutualised setup where the brokers enjoyed rights of ownership, decision-making and trading. “It will support enhanced governance and transparency at the stock exchanges and bring greater balance between interests of various stakeholders through clear segregation of commercial and regulatory functions and separation of trading rights and ownership rights.
The chairman stressed the need for facilitating corporatisation in the country as the existing taxation regime was favoured non-corporate entities.
He said the sole proprietors of firms and partnership concerns were taxed at 25 per cent and they were exempt from audit while the listed companies paid 35 per cent income tax and were subject to stringent audits by the regulators. “In developed economies it is the other way round,” he noted.
He said Pakistan lagged far behind the rest of the world in corporate sector development. He said the United Kingdom with less than half Pakistan’s population has two million registered companies with 300,000 new companies being registered every year.
“In Pakistan there are only 61,000 registered companies against three million businesses as per the State Bank of Pakistan. It means only two per cent of the businesses are corporatised in Pakistan.”
The top regulator of the capital markets, non-banking institutions and insurance companies gave a detailed briefing on the achievements of the SECP and its future plans to protect investors and improve the markets. In answer to a question, he said from 1972 to 2010 there was no capital gain tax (CGT) on the capital markets. “Whatever capital gains the investors accrued during this period were legal and tax free.”
He said the SECP’s ranking had improved in World Economic Forum Global Competitiveness Report. “This is a great achievement as first 40 capital market regulators are from the developed economies.”

Company News:
Indus Motor Company: KARACHI, March 11: Indus Motor Company (IMC) has launched locally assembled sports utility vehicle “Fortuner”, claiming it to be around 40 per cent cheaper than its imported version.
“IMC adhering to its commitment to develop the local auto industry and will continue to offer new, quality products and increase the localisation through continuous transfer of technology,” IMC CEO Parvez Ghias said in a statement.
MOHAMMED SALEEM MANSOORI

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