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Monday, 13 May 2013

STOCK MARKET UPDATE: 14.05.2013



STOCKS
Karachi Stocks Up 328.55 Points:
KARACHI, May 13: At the close of trading, the KSE-100 index was at 20244.82, up 328.55 points. 

(Today 14th April- Market is 186.58 Up@ 11.21 am)


May 13, 2013

5 TOP GAINERS  &  LOOSERS:

Wyeth Pak
Rs 19.73
Rafhan Maize
Rs (222.99)
Murree Brewery
Rs 17.61
Bata Pak
Rs (79.99)
Siemens Pak
Rs 15.65
Shezan Int’l
Rs (32.05)
Bhanero Textile
Rs 14.99
Mitchells Fruit
Rs (18.85)
Indus Dyeing
Rs 13.00
Island Textile
Rs (13.00)

Stocks settle above 20,000-level
KARACHI, May 13: The Karachi stock market warmly greeted the election results with KSE-100 index up by a staggering 328.55 points or 1.65 per cent on Monday, the first post-election trading session.
The index easily dismantled the 20,000 barrier and closed way above that, at 20,244.82 points. The market saw across the board surge in stock prices, but several blue chips were major gainers. The Mansha group stocks, MCB Bank and Nishat Mills hit the ‘upper lock’.
MCB Bank has rallied with three ‘upper locks’ in a row, with the stock up by about Rs34 or 15 per cent in three days. Index heavyweights in energy, cement and banks led the rally.
Mohammad Sohail, CEO at Topline Securities observed that contrary to market expectations of a hung parliament and weak coalition government, the emergence of a single party with comfortable majority to be able to form the government was thought to bring good tidings for the country, which could bring stability and help dispel economic woes.
Both local and foreign investors were aggressive buyers who saw value in the country equity market where stocks were currently trading at a multiple of seven times, which was lower than the regional markets by 30-40 per cent, Sohail said.
Analyst Veer Bajaj at JS Global also said that for the KSE, the key positive was that election results were far more decisive than the pre-poll outlook, with PML-N emerging dominant and two-time former Prime Minister Nawaz Sharif all set to take the seat for the third time.
He observed that the market broke the 20,000 psychological barrier as investors seemed positive overall even when prices of stocks were at such high level.
Many scrips touched ‘upper lock’ including PSO, NML, MCB Bank, Pioneer Cement and PIA. Cement sector was the volume leader after the release of monthly cement figures.
Analyst Abdul Azeem at Invest Capital pointed out that as per the PML-N manifesto, promises were made on low interest rate scenario to provide level-playing field to local industry and low tax rates. Both factors bode well for the local capital market.
Moreover, expectation of improved energy position mainly in Punjab will keep textile, cement and other industries’ profitability on the higher side.
Samar Iqbal, Senior Manager Equity said that investors feel that stable government would force economic leaders to take bold steps to put economy back on track. PSO closed at upper limit as investors expect some resolution on the circular debt front.
“Stability is good for the market,” said Syed Faisal Shaji at Standard Capital.
The foreign investors continued to be bullish on Pakistan equity. On Monday, foreign inflow amounted to $7.29 million, which led the local buyers. “In the last four sessions, foreign investors have bought equity worth $30m,” a analyst calculated. Among local participants, ‘companies’ went into aggressive buying on Monday with fresh investment of $4.94 million.
‘Individuals’ also took heart and picked up choice scrips of the value of $0.40, after several days of profit-taking. “Banks” offloaded shares worth $7.29 million on Monday and mutual funds were also in the ‘sell’ mode, disposing of stocks worth $1.95m to take profit.
Turnover jumped to 280 million shares on Monday, from 218 million shares traded last Friday. Trading value shot up by Rs2.679 billion to Rs9.806 billion, from Rs7.126 billion. Fauji Cement was in the lead on the active list with a huge volume at 32m shares, up by 40 paisa to Rs10.58.
Karachi stocks hit all-time high on Sharif win: KARACHI: Karachi stocks hit an all-time high Monday following Nawaz Sharif's strong victory in landmark elections, which revived hopes the steel tycoon's pro-business agenda could spark an economic revival.
The benchmark index of top 100 shares rose 1.6 per cent to 20,232 points in early trade, surpassing the 20,000 mark for the first time, after Sharif's Pakistan Muslim League - Nawaz (PML-N) emerged with a clear lead over its rivals.
The election results defied analysts' predictions of a weak parliament as the PML-N looked able to form a government without the help of its traditional rival the Pakistan Peoples Party and new challenger Imran Khan's Pakistan Tehrik-i-Insaaf.
“We were fearing a hung parliament and thus a weaker and unstable government would come into power as a result of the elections,” said Mohammad Sohail, the chief of Topline Securities, a leading brokerage house in Karachi.
Investors are hopeful of an economic revival under Sharif, whose pro-business policies earned him a good reputation among traders and industrialists during his two previous tenures in the 1990s.
“He liberalised the economy by launching a privatisation programme and liberalised the financial sector allowing foreign investors to step into Pakistani capital markets,” Sohail said.
Though his privatisation agenda was never fully implemented, Sharif has promised in early interviews to pick up where he left off.
Local bourse surges to new record at 20,244 points: KARACHI: The successful holding general elections in the country and PML-N Chief Nawaz Sharif’s appearing ready to form the government gave benchmark KSE 100-Share Index at Karachi Stock Exchange (KSE) a massive push to close at a record level of 20,244.82 points, up by 328.55 points on Monday.
Share prices witnessed increase on almost all the counters right from the beginning of today’s trade and remained in the positive zone till market close.
The traders and investors are positive that the new government would take steps towards revival of the economy in the country.
MCB and Nishat Mills registered impressive gains and closed at Rs261.90 and Rs89.99 respectively.

Company News:
S&P sees stable rating on Pakistan: KARACHI, May 13: Standard and Poor’s (S&P) Ratings Services stated on Monday that Pakistan’s parliamentary election results had set the stage for longer-term stability of ‘B-’ sovereign credit rating on the country.
A statement released by the international rating agency from Singapore, said that the partial results from the elections held on May 11 indicated a strong lead for the Pakistan Muslim League-Nawaz (PML-N). The rating agency acknowledged: “The elections were the first in the country’s history in which an elected government handed power to another elected government”.
Standard & Poor’s credit analyst Agost Benard said in his report that it was a key achievement for Pakistan’s maturing democracy, in the face of general economic malaise, widespread and incessant sectarian and political violence, large-scale domestic insurgencies, and ongoing tension with neighbouring India.
S&P recalled that in a commentary titled “Successful elections are crucial as Pakistan’s balance of payments pressures mounts,” published April 4, 2013, the rating agency had outlined its views that timely, successful, and credible elections were essential for Pakistan to deliver a government with a reasonable chance of tackling the country’s economic imbalances, including a looming balance of payments crisis.
“Preliminary election results indicate such an outcome,” analyst Benard said in his report on Monday. He stated that the elections took place on schedule, without major shortcomings that would result in a disputed outcome, and with a large voter turnout despite intimidation and bombings on election day by extremist elements.
The 60pc voter turnout, compared with 44pc in the 2008 elections, ensures greater legitimacy for the new government, S&P opined. Moreover, the results suggested that PML-N was likely to have a lead that would enable it to form a coalition without the support of major political rivals or the minor parties.
“We believe the election outcome puts the incoming government in good stead to sew up an IMF deal soon,” Benard said. This is needed to stabilise external finances and to provide the policy framework for necessary fiscal and energy sector reforms.
“If successful, the efforts will underpin the continued stability of the sovereign ratings at the current ‘B-’ level”, analyst Benard affirmed.
Regarding Standard & Poor’s Ratings Services, the paper mentioned that it was part of McGraw Hill Financial, the world’s leading provider of independent credit risk research and benchmarks.
It publishes more than a million credit ratings on debt issued by sovereign, municipal, corporate and financial sector entities.
S&P has 1,400 credit analysts in 23 countries and more than 150 years’ experience of assessing credit risk.


MOHAMMED SALEEM MANSOORI

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