STOCK MARKET UPDATE: 26.04.2013

STOCKS

Karachi Stocks Up 105.94 Points:
KARACHI, Apr 25: At the close of trading, the KSE-100 index was at 18885.60, up 105.94 points.

 (Today 26^th April- Market is 45.62 Up@ 11.15 pm)

April 25, 2013

 5 TOP GAINERS  &  LOOSERS:

Nestle Pak.	Rs 310.00	Colgate Palmolive	Rs (50.00)
TRG Pak	Rs 170.00	Siemens Pakistan	Rs (7.00)
Rafhan Maize	Rs 150.00	Clariant PaK.	Rs (4.02)
Bata (Pak)	Rs 94.50	Jubile Life	Rs (3.43)
Wyeth Pak Ltd	Rs 67.30	Javedan Corp	Rs (3.09)

Bulls take KSE 100-index to new peak

KARACHI, April 25: Stocks extended the rally on the share market on Thursday, where the KSE-100 index gained 105.95 points to close at yet another new high at 18,885.61 points.
The equities began on a firm note and without looking back, climbed to the day’s highest level at 18,928.87, collecting 149 points.
The weak holders in big-ticket stocks, mainly Engro Corporation, were fearful of the dizzy height and decided to take profit and switch into low-priced stocks. Engro was in the limelight for the last several days. The benchmark closed around 50 points lower than the day’s highest.
Analyst, Syed Rehan Ali at Foundation Securities observed that faltering volumes continue to restrict any significant correction enabling the market to recover lost grounds. The second and third tier stocks were seen to have led the volume leaders on Thursday with Engro being the only three-digit priced stock among 10-top traded scrips.
Significantly, unlike Wednesday, foreign investors were not the major buyers; the foreign portfolio inflow at just $0.57 million.
It was noted that after taking profit in the first three months of the current year, possibly to meet redemptions, mutual funds had re-entered the market, investing $2.55 million on Thursday. ‘Companies’ also bought stocks worth $1.12 million. ‘Banks’ offloaded equity worth $1.69 million.
Several companies that are heavily-traded announced financial results on Thursday.
Samar Iqbal at Topline Securities said that the market closed to an all time high on the back of continuous rally in mid cap stocks and better March quarter results.
Cement sector remained in limelight after better than expected quarter announcements from Maple Leaf Cement, Fecto Cement, and Pioneer Cement.
While Hub Power Company; OGDC and Nishat Mills also announced healthy results.
The market capitalisation based KSE-30 index was up by 56.16 points to 14,573.37 points. The gainers at 255 stocks were more than twice the losers at 105. Market capitalization increased by Rs37 billion to Rs4.633 trillion, from Rs4.596 trillion the earlier day.
Turnover was slightly down to 214 million shares on Thursday, from 220 million shares traded the day ago. Trading value was also about the same at Rs6.380 billion on Wednesday and Rs6.374 billion on Thursday.
The two highest gainers for the day were Nestle Pak, up by Rs310 to Rs6,510 and Unilever Food higher by Rs170 to Rs5,000; the scrip has gained momentum after the buy-back announcement by the parent company, Unilever Pakistan.
On the declining side, the biggest fall was seen in Colgate Palmolive lower by Rs50 to Rs1,950 and Siemens Pakistan down by Rs7 to Rs602.
On the volume leaders list, Maple Leaf Cement saw trading in 26.2m shares up by 51 paisa to Rs19.36. It was closely followed by TRG Pakistan which hit the ‘upper lock’ with gain of Re1 to Rs10.30 on 25.9m shares, Fauji Cement was up by 7 paisa to Rs8.82 on 14m shares, NIB Bank rose 11 paisa to Rs2.29 on 11m shares, Jah Sidd Co was up by 9 paisa to Rs12.43 on 10m shares, Engro Corporation, conceded 40 paisa to Rs138.95 on 8m shares, the decline with low volume signified profit taking by weak holders.
Dawood Hercules rose by Rs2.01 to Rs55.19 on 6m shares, Pak Elektron gained 98 paisa to Rs12.99 on 6m shares, Quice Food continued its climb, adding 23 paisa on Thursday to Rs10.20 on 5m shares and Pioneer Cement, posted gains of Rs1.12 to Rs24.76 on5m shares, the excitement in the scrip triggered by better-than-expected financial results.

Company News:

OGDC earns Rs76bn in nine months: KARACHI, April 25: Thursday saw an inflow of quarterly results of several companies that carry heavy weightage in the KSE-100 index or are briskly traded:
OGDC: Oil and Gas Development Company with the highest weighted scrip on the KSE-100 index announced 9MFY13 profit after tax at Rs75.7bn (EPS of Rs17.59) against earnings of Rs69.2bn (EPS of Rs16.10) in 9MFY12, recording growth of 9 per cent YoY.
The results turned out to be lower than consensus market forecast. Alongside results, the company announced a third interim cash dividend of Rs1.75 per share. The company has already announced cash dividend at Rs3.75, which takes the cumulative dividend in 9MFY13 to Rs5.50 per share.
Net sales increased by 19pc YoY in 9MFY13 “on the back of higher production from Nashpa, Tal and KPD and 9pc YoY rupee depreciation against dollar” commented Syed Atif Zafar at JS Global.
At the same time, Other Income increased by 58pc YoY owing to interest income booked on Rs82bn TFC subscribed in September 2012. However, 3.4 times YoY rise in exploration costs limited growth in the bottomline.
Analyst Nauman Khan said that the growth in earnings primarily stems from 19pc improvement in company’s topline to Rs169bn while healthy increase of 58pc in other income to Rs10.7bn also supported the bottomline. Higher oil and gas production was the major factor in higher earnings.
In 3QFY13, company posted an earning of Rs6.15 per share which was up 12pc from preceding quarter but down 4pc from Rs6.43 in the same quarter last year. As compared to 3QFY12, though company’s topline rose by 10pc but 4 times increase in exploration cost proved to be the drag on company’s bottomline.
Nishat Mills Ltd: The company reported 9MFY13 unconsolidated profits at Rs4.11bn (EPS Rs11.69), up 63pc compared to Rs2.53bn (EPS Rs7.19) in the same time previous year (YoY).
“Revenues of the company improved by 20pc to Rs38.9bn in 9MFY13, from Rs32.5bn YoY on the back of strong cotton prices, firm regional demand and depreciating local currency,” said Zeeshan Afzal at Topline Securities.
Moreover, the absence of inventory losses and favourable textile prices in the region improved company gross margins to 17pc in 9MFY13 as compared to 14.8pc YoY.
Muhammad Affan Ismail at BMA Capital Management said that the sharp YoY up tick in profitability during 9MFY13 was primarily attributable to robust rebound in core operations led by higher-cotton yarn spreads, significant improvement in volumetric sales in both low and high value added segments and better exports coupled with 9pc YoY depreciation in rupee value against the dollar.
Gross margin improved by 2pps YoY to 17pc in 9MFY13 on account of better cotton to yarn spreads and higher volumetric sales.
In the third-quarter (3QFY13), PAT of the company was recorded at Rs1.25bn (EPS: Rs3.57), up against Rs0.62bn (EPS: Rs1.78) in 3QFY12. However, compared to preceding quarter (2QFY13), Nishat Mills’ sales declined by 6pc to Rs12.6bn in 3QFY13. Further, 41pc decline in other income to Rs543m due to low dividend income also diluted the bottom-line by 30pc QoQ to Rs1.3bn in 3QFY13.
Hubco: Hub Power Company also announced its 9MFY13 results posting PAT at Rs7.4bn (EPS: Rs6.4), up 49pc YoY, compared to earnings of Rs5bn (EPS: Rs4.3) in the same period last year.
The earnings growth primarily stems from commissioning of Narrowal project. Another factor that played its role in earnings growth was U-shaped based return while higher indexation factor (rupee depreciation and inflation) was also believed to have contributed to earnings growth.
The company posted earnings of Rs2.3bn in the 3QFY13 versus Rs1.7bn in the same period last year, up by a significant 35pc.
Fatima Fertiliser: The company declared PAT at Rs1.7bn (EPS Rs0.8) for 1Q2013 as against Rs438m (EPS Rs0.2) in same quarter last year (QoQ) up almost four times.
During the period, Fatima earned revenue of Rs7.5bn as against Rs3.3bn in 2011, up 125pc.
Higher volumetric variance on the back of favourable agricultural environment could be the main driving force behind the increase. Although, the company’s gross profitability rose by 86pc to Rs4.4bn, its gross margins remained depressed during 1Q2013.
Analyst Asad I. Siddiqui stated that the company’s gross margins fell to 59pc versus 71pc in the same period last year, which was thought to be due to lower product prices in 1Q2013. Margins were also squeezed due to the rupee depreciation against dollar as company’s cost of input (feed gas) is locked at $0.70 per mmbtu. The company’s bottomline was further bolstered by reduction of Rs422m in finance cost to Rs1.0bn.
Maple Leaf Cement: The third tier-stock MLCF announced the company’s 9MFY13 results posting PAT at Rs2.2bn (EPS: Rs4.16) against loss of Rs220m and loss per share at 0.49 suffered YoY.
Sales improved to Rs12.7bn, from Rs11.1bn and gross profit jumped to Rs4.3bn, from Rs2.8bn. Profit from operations stood at Rs3.5bn in the 9MFY13 and Rs1.7bn same time last year. However, all of the operating profit in the 9MFY12 was wiped off by ‘finance costs’ which amounted to Rs1.8bn in 9MFY12. The finance costs were lower at Rs1.3bn in three-quarters under review.

Urea makers demand full gas supply: KARACHI, April 25: Pakistan will have to import around one million tonnes of urea this year if uninterrupted gas supply to all SNGPL-based fertiliser plants is not restored.
The import will cost $450 million and a subsidy of Rs21 billion to match the imported urea price to domestic price, Fertiliser Manufacturers Pakistan Advisory Council (FMPAC) said on Thursday.
Massive loss in local urea production due to excessive gas curtailment in the past three years has cost significantly to the country as the government spent $1.5 billion on import of 3.4 million tonnes of urea and around Rs80 billion on subsidies during 2010-12.
Pakistan is self-sufficient in urea production and with consistent gas supply to these plants, the government can ensure timely availability of this key farm input to farmers at the cost effective rates and would also help government to reduce its fiscal deficits as well as subsidy spend.
FMPAC Executive Director Shahab Khawaja, in a statement, said that in current tight fiscal position of the country, Pakistan cannot afford to spend hundreds of millions of dollars on a commodity in which we are fully self-sufficient and can even export the surplus production to earn precious foreign exchange.
He said that SNGPL based fertiliser plants that include Pakarab, DH Fertilisers, Agritech and Engro’s new plant faced around 90 per cent gas curtailment in 2012 that significantly brought down the urea production to 4.2 million tonnes against 4.8 million tonnes production of 2011.
Pakistan currently has the 6.9 million tonnes urea production capacity.
He said that SNGPL based fertiliser plants were completely shut for 4 months in winter hoping to get gas post winter but currently only two are operating at 75 per cent of capacity corresponding to two days a week supply only.
He said that fertiliser sector is not burning the gas to run the plants, it offers maximum value addition by converting the raw gas into precious urea grains and country hugely benefits from the fertiliser industry.
He added non-production of urea only hurts the interest of poor farmers, who ensure food security of 190 million people of this country.
TCP awards contract for urea import: KARACHI, April 25: The Trading Corporation of Pakistan (TCP) has awarded contract for import of 80,000 tonnes of urea to the lowest bidder, M/s Helm Dungemittel, GMBH at $374.73 per mt c&f.
The tender was floated on March 21. In all, 15 bids were received, out of which 13 were found responsive in terms of prescribed evaluation criteria.
The prices quoted in the tender ranged from $374.73 to $414.75 per mt.
Keeping in view the competitiveness and consonance of the price vis-à-vis the international prices of urea, the offer was accepted and the contract was awarded to the lowest bidder accordingly.
TCP is importing 130,000 tonnes of urea in pursuance of a decision of the ECC of the cabinet.

MOHAMMED SALEEM MANSOORI