DAILY STOCK MARKET TREND: 16.09.2011

Stock

Karachi Stocks Up 5.20 Points:
KARACHI, Sept 15: At close of trading, the KSE-100 index was at 11302.22, up 5.20 points.

September 15, 2011

TOP  5  SCRIPTS GAINERS AND LOOSERS:

Sanofi-Aventis	Rs 5.95	Unilever Foods	Rs (82.36)
Indus Dyeing	Rs 5.83	UniLever Pak	Rs (67.84)
Mari Gas	Rs 5.40	Rafhan Maize	Rs (60.00)
Bata (Pak) Ltd	Rs 5.01	Fazal Textile	Rs (4.80)
HinoPak	Rs 3.52	Shell Pakistan	Rs (2.65)

KSE 30 – Shares Index	Previous 10,851.28, Thursday’s 10,876.05, plus 24.78 points
KSE 100 – Shares Index	Previous 11,297.02,Thursday’s 11,302.22, plus 5.20 points
MARKET CAPITALIZATION	Previous Rs2,991.523bn, Thursday’s Rs3,002.363bn, plus Rs10.840bn
VOLUME LEADERS	Fauji Fertiliser Bin Qasim 8.140m, Arif Habib Corporation 5.950m, Lotte Pakistan 3.502m Hub-Power 3.252m, Fatima Fertiliser 2.742m shares.
TOTAL VOLUME	54.110m shares
TOTAL	TONE: Steady, total listed 637, actives 337, plus 143, minus 112, unchanged 82

Stocks manage modest gains

KARACHI, Sept 15: The stock market on Thursday maintained an optimistic outlook despite profit-selling at the inflated levels but renewed support in fertilizer shares on reports of higher earnings evoked good interest on some other counters, leading to a steady close.
After early rising to session’s high of 13,365.43 points, the KSE 100-share index ended with a modest rise and was last quoted at 11,302, up 5.20 points as compared to previous 11,297.02.
Turnover figure also suffered a contraction as leading investors kept to the sidelines and held on to their previous positions, while jobbers and short-term dealers cashed in on the available profits on selected counters.
Analysts said the market appeared to be in a consolidation mood and did not opt for any major event owing to selling in the leading oil shares, notably Pakistan Oilfields, Attock Refinery and some others.
They said barring leading fertilizer shares, which again remained in the limelight on active short-covering ahead of their third quarter earning reports amid a loud whispering that interim payouts by them could be on the higher side.
They said Fauji Fertiliser Bin Qasim again came in for strong support and led the list of actives among others and was traded further higher.
A higher payout by Arif Habib Corporation was also well received in the market and together with the fertiliser shares it resisted larger market fall and so did some of the leading oil shares.
Leading gainers were led by Sanofi-Aventis and Indus Dyeing, which rose by Rs5.95 and 5.83, while losers were led by Unilever Foods and Unilever Pakistan, off Rs82.36 and 67.84.
Traded volume fell to 54.110m shares from the previous 76m shares but gainers maintained a fair lead over the losers at 143 to 112, with 82 shares holding on to the last levels.
The active list was topped by Fauji Fertiliser, up Rs1.18 at Rs52.75 on 8m shares, followed by Arif Habib Corporation, higher by 90 paisa at Rs27.68 on 6m shares, Lotte Pakistan, steady by two paisa at 12.80 on 4m shares, Hub Power, firm by 28 paisa
at Rs40.26 on 3m shares, Fatima Fertiliser, steady 11 paisa at 17.28 also on 3m shares, Engro Corporation, higher by Rs2.31 at 135.35 on 3m shares and National Bank, up 23 paisa at 44.60 on 2m shares.
They were followed by Netsol Technologies, lower 38 paisa at 15.19 on 2m shares, D. G. Khan Cement, easy 38 paisa at 20.55 also on 2m shares and Azgard Nine, lower 14 paisa at 5.03 on 2m shares.
FUTURE CONTRACTS: Fauji Fertiliser Bin Qasim again led the list of actives, up 93 paisa at Rs53 on a large volume of 2.310m shares followed by Engro Corporation, higher by Rs2.20 at Rs134.25 on 0.824m shares and National Bank, firm by seven paisa at Rs44.71 on 0.582m shares.
They were followed by Attock Refinery, off Rs1.48 at Rs111.54 on 0.348m shares and Pakistan Oilfields, off also by Rs1.48 at Rs365.12 on 0.264m shares.
DEFAULTER COS: Japan Power again led the list of actives, up three paisa at Rs1.02 on 77,203 shares followed by S.S. Oils, steady by one paisa at Rs4.51 on 7,000 shares and Ravi Textiles, up two paisa at 0.87 on 5,534 shares. Others showed fractional changes.

Investors shrug off record 4Q corporate earnings

KARACHI, Sept 15: Corporate profits in fourth quarter (4Q) roared to Rs72.1 billion, showing an increase of 26 per cent over the earnings of Rs57.4 million in the corresponding period of the previous year. Large number of companies posted higher profit in the results reporting season that started on July 25 and now draws to a close. The growth was led by the banking sector. Cement and fertiliser companies also reported improved bottom line in 4Q all of which pushed the full financial year 2011 earnings up by 18 per cent. Investors in equities, however, seemed to shrug off earnings growth.
A cool response brought KSE-100 index down by 9 per cent in the reporting period. As other local political and economic issues and volatile world equity markets, sat heavily on investors mind, even the fact that 40 per cent of companies had reported higher than expected earnings growth, failed to fuel investment sentiments.
Atif Zafar, analyst at JS Global sampled 35 companies, which he said represented 75 per cent of the KSE-100 market capitalisation. According to the assessment, the first quarter contributed the least and the fourth quarter the most to the year’s earnings, just as it did last year.
“Barring one timers such as retrospective downward revision in revenues of Rs15.3 billion for OGDC (in 4QFY10) & a deferred
tax asset (DTA) write off of Rs2.6billion for PSO (4QFY10), the overall companies’ earnings would have risen by 37 per cent over the same time last year.
Weak domestic demand and energy shortages led to drop in volumes for the manufacturing concerns in 4Q, but profits
recorded by cement sector was a phenomenal ten times the same period last year. Fertiliser companies’ earnings rose 54 per cent and the textile sector 23 per cent year-on-year owing to margin expansion facilitated by higher product prices. ”Going forward, we expect the positive momentum in earnings to continue into financial year 2012, with an expectation of a broad based rise of 15 per cent year-on-year. This translates into an impressive earnings yield of 17 per cent, offering a positive spread of 360bps over 6month T-bills and 480bps over inflation”, said the JS analyst.
Sector-wise, it was noted that the energy companies posted less than average growth of 14 per cent year-on-year in their profits during 4Q. But that was on account of a one time downward revision in revenues of Rs15.3billion for the oil & gas sector giant, OGDC. Excluding that and the above mentioned deferred tax asset (DTA) write off for PSO, earnings for the energy sector would have risen by 37 per cent over the same time last year, led by growth in production volumes for Exploration & Production companies; higher average Arab light crude oil prices and improved gross margins of refineries.
The services sector recorded an impressive rise of 45 per cent in earnings, primarily on account of 43 per cent increase in banking sector profits on the back of higher net interest income (spreads up 23bps YoY) and non-interest income. Pakistan Telecom (PTCL) also reported huge earnings growth by 71 per cent, fuelled by higher other operating income.

 

Mohammed Saleem Mansoori