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Monday, 29 April 2013

STOCK MARKET UPDATE: 30.04.2013



Karachi Stocks Down 94.86 Points:
KARACHI, Apr 29: At the close of trading, the KSE-100 index was at 18822.85, down 94.86 points.
 (Today 30th April- Market is 60.41 Up@ 10.49 am)


April 29, 2013

 5 TOP GAINERS  &  LOOSERS:

Rafhan Maize
Rs 175.00
Unilever Food
Rs (190.00)
Bata (Pak)
Rs 78.46
Colgate Palmolive
Rs (97.50)
Wyeth Pak Ltd
Rs 74.19
Island Textile
Rs (44.50)
Shezan Inter.
Rs 22.83
Sanofi-Aventis
Rs (18.57)
National Foods
Rs 17.75
Philip Morris Pak.
Rs (14.78)
Stocks tumble on political uncertainty
KARACHI, April 29: Stocks took a dip on Monday following substantial gains the previous week.
The KSE-100 index started out in the red, with investors concerned over the political developments over the week-end.
The benchmark pulled back by 94.85 points to close at 18,822.85 points.
The deteriorating law and order situation, many market participants said, had left a big question mark on the elections. The active list was dominated by the third-tier stocks, where punters and day traders generally entered in the hope of making big gains.
Despite substantial volatility with the benchmark touching high and low at 18,925.42 and 18,791.05 points, respectively, the volume was greatly depressed to 157 million shares, compared with the turnover of 206 million shares the previous Friday.
The figures released by the National Clearing Company of Pakistan showed that the mutual funds, which have been the major buyers in the last couple of weeks, remained on the ‘buy’ side on Monday, picking up selective scrips valued at $1.1m.
Among other local participants, banks also purchased equity in the sum of $0.29 million and individuals were net buyers of $0.06 million worth stock.
Foreign investors trimmed the portfolio by sale of $0.19 million worth shares.
Although result season is in full bloom and some big ticket companies came up with quarterly figures on Monday, it failed to trigger any excitement, represented by tiny volume. Engro started the negative momentum as the stock opened 2.9pc down on the rumours of gas supply being cut to its fertiliser plant, however, with better 1Q2013 result announced later during the day, the stock recovered and closed at Rs134.71.
Amongst other major announcements, NBP, MCB and Lucky Cement reported earnings per share at Rs1.42, Rs5.70 and Rs8.32 respectively.
Samar Iqbal, Senior Manager Equity Sales at Topline Securities, stated that due to deteriorating law and order situation in Karachi, local bourse dropped by 0.5pc. Unconfirmed news of gas discontinuation of Engro Fertiliser plant also dampened the sentiments.
Result announcement from leading companies, like NBP, MCB, Lucky, Engro and FFC, failed to boost sentiments.
Profit-taking was seen across the board in low volumes. TRG, Lotte Chemical and Wateen Telecom remained in limelight.
Ahsan Mehanti at Arif Habib Corporation stated that stocks closed lower amid political uncertainty.
Institutional profit-taking was witnessed in stocks across the board amid concerns for security unrest in the city. Consolidation in blue chip stocks post major quarter end earning announcements, economic uncertainty on falling foreign exchange reserves after IMF repayments and circular debt issues in the energy sector played a catalyst role in bearish sentiments at KSE.
Trading value of stocks declined to Rs3.84 billion on Monday, from Rs5.47 billion in the previous session.
Market capitalisation saw erosion by Rs21bn to Rs14.629tr from Rs4.650tr the previous Friday.
In all, 381 stocks came up for trading on Monday with 231 losers; 128 gainers while22 remained unchanged.
Among the 10-top traded scrips, TRG Pakistan saw turnover of 28m shares, up by 52 paisa to Rs11.82. It was followed by Lotte Chemical up by 5 paisa to Rs7.59 on 11m shares; Wateen Telecom with 10m shares, gained 35 paisa to Rs5.16; Bank of Punjab was higher by 42 paisa to Rs9.27 on 9m shares; Maple Leaf Cement lost 61 paisa to Rs18.34 on 6m shares; Pak Elektron lost 88 paisa to Rs12.22 on 5m shares; Pervez Ahmed Securities hit the ‘lower lock’ of Re1 to close at Rs2.92 on 4m shares.


Company News:
National Bank earns Rs3bn in 1st quarter: KARACHI, April 29: The National Bank of Pakistan posted an after-tax-profit of Rs3.032 billion for the first quarter (January-March) of this calendar year. The earning per share (eps) stood at Rs1.64.
The bank recorded pre-tax profit (excluding provision against investment) at Rs4.948bn compared to Rs5.507bn of corresponding period last year, showing a decrease of 10 per cent.
The bank’s net interest income fell by Rs1.458bn or 14.2 per cent against the corresponding period of last year. Non-interest markup income, however, increased by Rs1.659bn or 42.2pc mainly due to higher fees, commission and exchange income, dividend and capital gains.
Last year the provision against investment showed reversal of Rs1.5bn as the bank took advantage of booking reversal of impairment loss against shares; however this opportunity was not available this year. Provision charge against advances was
lower due to better recoveries.

MCB Bank :
The MCB Bank earned record profit-before-tax for the first quarter ended March this year.
“The bank has posted highest quarterly profit before tax in its history of Rs8.677 billion and declared cash dividend of Rs3.5 per share,” said a press release issued by the bank.The bank, in contrast with the industry results, posted an increase of two per cent and four per cent in profit-before-tax and profit-after-tax respectively. Net markup income of the bank was reported at Rs9.723bn whereas non-markup income was reported at Rs2.350bn.
Administrative expenses (before pension fund reversal) of Rs4.338bn witnessed a decrease of two per cent over the corresponding period last year.
Due to strengthened risk management framework and policies adopted by the bank, a reversal in provisioning charge of Rs840 million was reported for the quarter ended March 31, 2013 as compared to a provision charge of Rs75m for corresponding period last year.
The earnings per share for the period under review came to Rs5.70 compared to Rs5.51.
Lucky, Engro and others announce results: KARACHI, April 29: The financial results announced on Monday by some of the major companies included the following:
Lucky Cement: The company announced profit- after-tax at Rs6.98bn for the mine months of fiscal year 2012, which translated into earning per share (eps) at Rs21.59.
It represented a growth of 48.97pc over earning per share at Rs14.50 in the same period of last year and stood higher than market consensus expectations.
Increase in sales volume by 9pc was attributed to an impressive 30pc growth in exports, coupled with reductions in input costs. The factors underlined earnings growth.
Topline of the company rose by 16pc to Rs27.7bn as against Rs23.9bn during the corresponding period last year (year-on-year).
Analyst Asad I. Siddiqui at Topline Securities stated that revenue per bag of the company increased by 14pc to Rs313 per bag as against Rs274 per bag.
Cost per bag on the other hand inched up by 3pc, which resulted in gross margins expansion by to 44pc.
Other income was realised at Rs196m during the latest period as against Rs3m year-on-year.
Lucky cement ascribed 61.30pc rise in Q3 earnings to Rs2.592bn, which helped realise profit-after-tax at Rs6.98bn in nine months of the fiscal year.
A press release by the company stated that the earnings per share for the period stood at Rs8.32 against eps at Rs5.16 of corresponding period last year.
The company’s gross profit increased by 40.31pc during the third quarter as its net sales revenue improved by 19.28pc to Rs10.2bn against Rs8.5bn of last year.
The local sales volume during the third quarter registered a decline of 1.6pc to 0.99 million tonnes as compared to 1.01 million tonnes compared to same quarter last year, whereas export sales grew 30pc.
The finance cost of the company for the period under review decreased by 61pc.
Lucky Cement reported installation of new packing machines at its Pezu facility, and the new vertical mills at its Karachi plant was commissioned.
Engro Corporation: The company announced first quarter 2013 profit-after-tax at Rs1.86bn (eps Rs3.50) as against loss of Rs649m (loss per share Rs1.3) in corresponding quarter of the earlier year.
The results were generally in-line with market expectations.
Engro Corporation’s overall revenues grew by 36pc to Rs31.3bn while cost of sales was up by 23pc.
As a result, the company posted healthier gross margins at 29pc.
A company press release stated that Engro’s fertiliser business continued to experience 86pc gas curtailment on the SNGPL network. However, the company’s production during the quarter rose mainly due to incremental efficiencies by diverting Mari gas to the ‘Enven’ plant. Higher production along with lower availability of competitive imported urea increased Engro Fertiliser’s urea sales to 298KT in the first quarter of 2013 from 77KT in the first quarter of 2012 and improved its market share to 23pc in first quarter of 2013 from 8pc in 2012.
Resultantly, Engro Fertiliser reported net profit of Rs646m during the period ended March 31, 2013 versus a loss of Rs1,420m during the same period last year.
Despite stable revenues, Engro Foods’ profitability was higher than first quarter of 2012 by 34pc due to lower costs of sales.
The business closed the quarter with a profit of Rs653m versus a profit of Rs486m in the corresponding period of 2012.
The company’s investments in the Halal Foods business in Canada, Al Safa, achieved sales revenue of Canadian dollars 2.2m during first quarter of 2013 as compared to Canadian dollars 2.5m in the same period of last year.
Fauji Fertiliser: For the first quarter 2013, the company posted earnings of R4.91bn (eps of Rs3.86), up 27pc over profit-after-tax at Rs3.88bn and eps at Rs3.05 in the same quarter the earlier year.
Along with the results, the company announced first interim cash dividend at Rs3.50 per share, which translated into payout of 91pc of earnings. The results were in line with market expectation.
Sales for first quarter 2013 amounted to Rs16.4bn, up 43pc over sales at Rs11.4bn year-on-year.
Analyst Naveed Tehsin at JS Global observed that in the first quarter 2013, the year-on-year growth in earnings was due to lower base of 2012, where off-take was held back in first quarter 2012 due to expectations of urea price reduction amid availability of imported urea, and secondly, weak farm economics. The first quarter 2013 net sales increase by 43pc year-on-year was primarily attributable to higher off-take of 565k tonnes (up 72pc year-on-year).
Nishat (Chunian): On a standalone basis, NCL posted profit-after-tax of Rs733m (eps Rs4.03) in the third quarter of fiscal year 2013 vs profit-after-tax at Rs251m (eps Rs1.41) in the third quarter of fiscal year 2012. The earnings were in-line with forecasts.
The top-line showed an impressive growth of 13.4pc on a sequential basis, clocking in at Rs5.61bn.
Gross profit margins improved significantly quarter on quarter to 17pc, following the recent gains in international cotton prices as well as rupee-dollar parity.
For nine months of fiscal year 2013, profit-after-tax was recorded at Rs1,723m (eps Rs9.47), translating into a substantial growth of 5.8 times year-on-year.
Bilal Alvi, investment analyst at AKD Securities, stated that the impressive top-line growth by NCL “underscores the impact of the Chinese cotton policy on NCL, resulting in lower sales risk and relative insulation from power crisis.”
Habib Bank Limited (HBL): KARACHI, April 29: Habib Bank Limited (HBL) on Monday launched its branchless banking services ‘HBL Express’, a press release said. HBL Express is being launched with domestic remittances and utility bill payments and the product portfolio will be expanded to include international remittances, mobile wallet and other corporate solutions.
Allied Bank: KARACHI, April 29: CEO of Allied Bank Khalid Ahmed Sherwani has been named the winner of The Asian Banker Leadership Achievement Award 2013 for Pakistan. Allied Bank has also been recognised as The Best Managed Bank in Pakistan. The ceremony held in conjunction with The Asian Banker Summit 2013 at Jakarta.

MOHAMMED SALEEM MANSOORI

Sunday, 28 April 2013

STOCK MARKET UPDATE: 29.04.2013



STOCKS
Karachi Stocks Up 32.10 Points:
KARACHI, Apr 26: At the close of trading, the KSE-100 index was at 18917.71, up 32.10 points.

(Today 29th April- Market is 35.92 Down@ 11.24 am)


April 26, 2013


 5 TOP GAINERS  &  LOOSERS:

Rafhan Maize
Rs 200.00
Sanofi Aventis
Rs (18.32)
Bata Pak
Rs 92.22
Mitchells Fruit
Rs (9.00)
Unilever Food
Rs 90.00
Mehmood Textile
Rs (4.77)
Shezan Int’l
Rs 21.75
Searle Company
Rs (4.10)
Indus Dyeing
Rs 19.04
Thal Ltd
Rs (2.51)

Index hits highest-ever level
Led by a spate of better corporate results, Karachi Stock Exchange (KSE) bounced back this week and the KSE-100 share index hit highest-ever level of 18,917.71 against 18,631.21 points previous week. It gained 286.50 points with average trading volumes also rising by 15 percent WoW to 189 million shares.

Commenting on the market performance, Farrah Marwat, Head of JS Global (Research) said that the week started on a tepid note given concern on key macro variables (SBP's FX reserves at a 10-year low of $6.64 billion; fiscal deficit at 4.5 percent of GDP in 9MFY13 and likely to cross 7 percent of GDP in FY13E).

However, she added that the Finance Minister's statement mid-week that Pakistan could approach IMF for a $5.0 billion loan post elections went some way towards soothing investor jitters.

"Overall, the benchmark KSE-100 Index clocked a return of +1.5 percent WoW (up 287 points) with average trading volumes at the local bourse also rising by 15 percent WoW to 189 million shares," she said.

Amongst listed sectors, Farrah said fertilisers (+1.5 percent WoW) remained in the limelight on ST gas supply concerns at Engro's plant (resolved mid-week); above-expected 1Q2013 result announcements by Fatima Fertilizer and Engro Fertilizer and Engro's revelation of plans to list the fertilizer company before end-2013.

She said cements (+2.4 percent WoW) also garnered a fair share of investor focus, as mid-sized companies within the sector (MLCF, CHCC) announced strong 9MFY13 earnings.

Above-expected results, rupee softness and a steady stream of news flow on plans to address circular debt kept the power sector (+2.6 percent WoW) ticking as well. Meanwhile, banks underperformed the KSE-100 by 0.5 percent this week as soft 1Q2013 earnings came hand-in-hand with further spread compression eyed in April 2013, Marwat said.

Weekly average volume witnessed improvement of 15.5 percent to Rs189.01 million shares compared to Rs163.65 million a week earlier. The market capitalisation also remained on the higher side. Up by 2.1 percent, it closed at Rs4.649 trillion from Rs4.555 trillion.

On the contrary, average daily value was on the lower side. It decreased by 6.7 percent to close at Rs5.79 billion compared to Rs6.21 billion registered during the previous trading week.

Universal top performers during the week were Pak Suzuki Motor Co, Adamjee Insurance, Pakistan State Oil, Fatima Fertilizer, ICI Pakistan, Nishat (Chunian), Attock Petroleum, National Refinery, Pakistan Telecom and Lotte Pakistan PTA.

According to details of last week, bears defeated bulls at Karachi share market on the beginning of the week as the benchmark-100 index lost 25.66 points to close at 18,605.55 points against 18,631.21 points on last trading-day.

KSE witnessed renewed buying in various sectors on Tuesday due to better results and the benchmark-100 index gained 41.74 points to close at 18,647.29 points against 18,605.55 points. Karachi share market witnessed an all-time-high trend on Wednesday as the benchmark-100 index gained 132.37 points to close at highest- ever level of 18,779.66 points against 18,647.29 points.

"All-time-high" trend continued at the local bourse as the benchmark-100 index breached psychological barrier of 18,850 on Thursday. The index gained 105.95 points to close at ever highest-ever level of 18,885.61 points against 18,779.66 points.

On Friday, though it was the mourning day on the call of MQM, Karachi Stock Exchange witnessed one more "all-time-high" session as the benchmark-100 index remained up with 32.10 points to close at highest-ever level of 18,917.71 points.


MOHAMMED SALEEM MANSOORI