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Sunday, 21 April 2013

STOCK MARKET UPDATE: 22.04.2013



STOCKS
Karachi Stocks Up 16.85 Points:
KARACHI, Apr 19: At the close of trading, the KSE-100 index was at 18631.21, up 16.85 points.
(Today 22nd April- Market is 59.92 Down@ 10.56 am)
April 19, 2013

 5 TOP GAINERS  &  LOOSERS:

Unilever Food
Rs 68.00
Rafhan Maize
Rs (52.00)
Wyeth Pak
Rs 63.32
Indus Dyeing
Rs (10.00)
Sanofi Aventis
Rs 19.74
Shezan Int’l
Rs (9.00)
Bhanero Textile
Rs 14.31
Services Inds
Rs (8.49)
Clariant Pak
Rs 13.19
Exide Pak
Rs (6.00)

Apr 22, 2013 10:30

Market
Symbols
KSE100 Index
AllShare Index
KSE 30 Index
KMI 30 Index
Status
Opened
Advanced
 68
Current
18547.33
Current
13155.34
Current
14393.91
Current
32444.74
Volume
25,447,500
Decline
101
High
18697.43
High
13223.32
High
14518.70
High
32676.75
Value
1,492,975,439.00
Unchanged
6
Low
18526.95
Low
13126.08
Low
14373.64
Low
32423.42
Trades
11,755
Total
175
Change
-83.88
Change
-26.15
Change
-78.93
Change
-100.56
KSE remains resilient despite weak corporate results  
LAHORE  - The week began on a bearish note as PTCL lower than expected earnings, heightened political uncertainty and weak law & order ahead of the upcoming elections weighed down on investors’ sentiments.
The KSE-100 index shed 352 points (1.9 per cent) in the first two trading days of the week. However, attractive valuations lured investors back to the market which resulted in a quick recovery. Overall, the KSE-100 Index declined by 0.4 per centWoW to 18,631 level, while average trading volumes improved to 164 million shares, up 15 per cent WoW. Key news highlights during the week were appointment of Dr. Shahid Amjad Chaudhry (Rector of Lahore School of Economics) as Advisor Finance and in charge of the Ministry of Finance and C/A registering a deficit of US$513 million in March-2013. Key financial results announced this week are as below:
Furqan Ayub, and expert, said that amid volatility in global equity markets and commodity prices local bourse also witnessed a volatile week. Market traded in a range of 269 points to close down by 0.4 per cent while volumes saw an increase of 31 per cent to verage Rs.6.2bn. Foreigner fund managers also remained net buyer of US$8.8(Till 18th Apr). Most of the companies announced their March quarter results this week like Attock Group, PTC, DGKC, HBL, EFOODS. PTC saw selling pressure after below expectation result announcement while DGKC and Efoods March earnings also fell below investors expectations. Renewed buying interest in OGDC, NBP, Engro Corp was also seen.
Samar Iqbal, another expert, said that results announcements, upcoming elections and change in global economic scenario will set investors’ mood. According to experts, amongst the major listed companies, all showed considerable improvement in their oil production during 3Q versus preceding quarters. OGDC (Pakistan’s largest oil and gas explorer) production was up 3 per cent from previous quarter while its gas production was up by 6 per cent. PPL and POL depicted improvement of 7 per cent and 14 per cent in their oil production during 3Q as against 2QFY13. However, their gas production is down 3 per cent and 8 per cent, respectively in 3Q as compared to 2QFY13.
Nauman Khan, an expert, said that country’s oil production surge to average 80.1k bpd (barrels per day) in 3QFY13, depicting an increase of 7 per cent from preceding quarter and 12 per cent from 3QFY12. Average gas production stood at 4.2bcfd (billion cubic feet per day) during 3Q which is up 5 per cent from 2QFY13. However, gas flows are down by an average 5 per cent from same quarter last year. Overall, improved production along with stable crude oil prices is likely to manifest itself in better 3Q earnings for three major E&P companies (OGDC, PPL and POL).
Experts maintain Over-weight stance on the sector with Pakistan Petroleum (PPL) as our preferred play. However, they also maintain Buy on Oil and Gas Development (OGDC) and Pakistan Oilfields (POL) as well.
Improved production from Nashpa and Makori east fields along with commissioning of Sinjhoro fields were the major propeller of oil production in 3Q as compared to previous quarters. While higher production from Zamazam, Mari, Uch, Kandhkot and KPD-TAY helped maintained gas plateau, given aging effect of Sui and Qadirpur field. Sui and Qadirpur production decline by an average 2 per cent in 3Q versus preceding quarter while are down significantly (8-10 per cent) from same quarter last year.
Overall in 9MFY13, country’s oil production surged by 9 per cent to 74.9k bpd while gas production is down 2 per cent to 4.2bcfd from same period last year.
In the absence of any major dry well, stable crude oil prices and average 1.7 per cent PKR depreciation against US dollar in 3Q as against 2Q higher production is likely to yield positive results for these companies. We expect listed companies earning to grow in the range of 15-20 per cent in 3Q from the preceding quarter

Company News:
Cement price set to increase: KARACHI: The cement industry anticipates an increase of Rs50 per 50-kg bag following a hike in transportation costs of cement and coal.
So far, the impact has not been passed on to the consumers despite the fact that decision of raising freight charges by goods carriers became effective from April 14, cement manufacturers claimed.
“We are currently bearing the rising transportation cost and watching the market situation which looks quite uncertain,” a leading cement maker said.
Meanwhile, cement retailers said that the prices of cement bags had been intact for the last few months. Good quality cement carries price of Rs435-450 per 50 kg bag.
Chairman All Pakistan Cement Manufacturers Association (APCMA), Aizaz Mansoor Shaikh estimated Rs50 as additional cost on a 50 kg bag in case the decision of hike in freight charges is fully implemented.
“It is up to the cement manufacturers how they would pass on the impact at the retailers’ end keeping in view market situation,” he said.
While many companies fear decline in their sales in case prices are raised, the APCMA chief said that quite a few companies have not been lifting coal and not making deliveries after April 14.
He said the load limit restricts the producers not to carry more than 50 tons of raw material and finished goods on the goods carriers. It will create a crisis as the country needs at least 50 per cent more trucks and vehicles to cover up the load.
Prior to April 14 decision, a truck or good carrier used to carry up to 80 tons of load. Now the industry needs to manage another truck or vehicle to carry the balance 30 tons.
He urged the government to intervene and immediately stop all of the sudden imposition of axle load restriction as it will hurt the industry. Meanwhile, a cement maker said that the new decision on axle load should be introduced gradually so that the related businesses could adjust their requirement and resources accordingly.
The carriers’ association had increased charges besides limiting the load volume per vehicle as per instructions of the concerned government authorities. The rise in transportation charges was announced by All Pakistan Combined Goods Transport and Transporters Welfare Association and the new charges were effective from April 14.
Market sources said the transportation union in Karachi has become so strong that it has been virtually dictating terms. Rates are fixed daily by the union for trucks loading from Karachi/Port Qasim for upcountry and from factory to Karachi and Karachi port. In fact, the union representatives are now even going to the respective factories to ensure increase in freight rates for movement from factories in the north to Karachi port.
Sources said that this increase in transportation cost will impact heavily on different commodities, especially cement which suffers the double impact both in terms of inward transportation of raw material and coal from ports to upcountry and transportation of finished products to ports for exports and local markets for domestic consumption.
Cement industry in Pakistan is using imported coal as its fuel and due to axle load implementation, freight cost for transportation of coal have seen an increase ranging from Rs900 to Rs1,400 per ton depending upon the supplies to factories upcountry.
Many industries not only receive supplies of raw, packaging material through goods carriers but they use trucks for dispatching their branded bags to retail markets and exports.
MOHAMMED SALEEM MANSOORI

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