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Sunday, 4 September 2011

DAILY STOCK MARKET UPDATE: 05.09.2011








Stock

Karachi Stocks Up 162.43 Points:
KARACHI, Aug 30: At close of trading, the KSE-100 index was at 11066.31, up 162.43 points.
August 30, 2011

5 TOP SCRIPTS GAINER  AND LOOSER

Nestle Pakistan
Rs 116.12
Murree Brewery
Rs (4.48)
UniLever Pak
Rs 64.00
Clover Pakistan
Rs (2.70)
Siemens Pak
Rs 20.00
BOC (Pak)
Rs (2.40)
Colgate Palmol
Rs 8.17
Tri-Pack Films
Rs (2.26)
National Refinery
Rs 6.96
Cherat Packagin
Rs (2.01)


KSE 30 – Shares Index
Previous 10,390.20, Tuesday’s 10,545.99, plus 155.79 points.
KSE 100 – Shares Index
Previous 10,903.88, Tuesday’s 11,070.58, plus 166.70 points
MARKET CAPITALIZATION
Previous Rs.2,895.218bn, Tuesday’s 2,934.922bn, plus39.704bn.
VOLUME LEADERS
National Bank 13.434m, Lotte Pakistan 7.938m, Fauji Fertiliser Bin Qasim 6.019m, Bank AlFalah 3.363m,Kot Addu Power 1.388m shares.
TOTAL VOLUME

53.056m shares
TOTAL
TONE;steady,total listed 637,actives 281,inctives 356,plus 141,minus 62,unchanged 78

KSE 100-share index gains 167 points
KARACHI, Aug 30: The share values on Tuesday staged a smart rally as investors covered positions in a highly oversold market at the lower levels almost on all the blue chip counters.
The market’s terribly buoyant mood was also well reflected in the KSE 100-share index, which surged by 1.53 per cent or 166.70 points well above the psychological barrier of 11,000 at 11,070.58 as leading base shares virtually raced towards
their pre-reaction levels on strong covering purchases.
Most of the leading base shares, notably OGDC, Pakistan Oilfields, Engro Corporation, which had been under pressure for the last few sessions, Nishat Mills, Fauji Fertiliser Bin Qasim, Fauji Fertiliser, and ICI Pakistan were leading among them.
Even the banking giant, National Bank, fell below the level of Rs40.00 on persistent selling throughout the last week as bad loan episode was said to be terribly exaggerated and joined the rank of gainers, although modestly.
“It appears to be a very unusual performance because a Eid weekend holidays are ahead, which in normal conditions, prompt selling rather than buying,” analyst Samar Iqbal said and added “tired bulls seem to be in no mood to sit on the sidelines any
more.”
However, the bulk of support remained confined to the blue chips, which had been under pressure for the last couple of
sessions and ensured higher capital gains.
“It was a judicious blend of both local institutional and foreign buying in line with the recovery of global stock markets,” another leading analyst Ahsan Mehanti said.”
Oil, banking and fertiliser shares, which have attained new low levels in the recent past, remained centre of activity.”
He said the snap recovery is expected to be sustained during the post-Eid holiday trading weeks also, although there is no fundamental change in the political scenario, notably in the backdrop of allegations and counter-allegations by political leaders.
Analyst Ashraf Zakaria was of the view that after having crossed the barrier of 11,000, the benchmark is expected to move steadily towards it pre-reaction level as most of the leading base shares are still in the firing range.
“The advent of foreign buying on the oil counter at the current lower levels could be sustained in the coming sessions also and that could well mean a further rise in the index,” he added.
After several lean sessions, plus signs dominated the list under the lead of Nestle Pakistan and Unilever Pakistan, up by Rs116.12 and 64.00, while top losers were Murree Brewery and Clover Pakistan, off Rs4.48 and 2.70, respectively.
Traded volume rose to 53.056m shares from the previous 37m shares as gainers held a strong lead over the losers at 141 to 62, with 78 shares holding on to the last levels.
The active list was led by National Bank, up 79 paisa at Rs36.97 on 14m shares followed by Lotte Pakistan, higher by 63 paisa at 11.70 on 8m shares, Fauji fertiliser Bin Qasim, higher by Rs2.14 at 50.48 on 6m shares, Bank Al-Falah, steady 17 paisa at 9.58 on 3m shares, Kot Addu Power, up 76 paisa at 43.55 on 1.388m shares, Engro Corporation, sharply higher Rs5.62 at 119.99 on 1.375m shares, and WordlCall Telecom, firm by 16 paisa at 1.39 on 1.370m shares.
They were followed by Fatima Fertiliser, steady by 30 pais


Regulators should endeavour to boost volumes at KSE
KARACHI, Sept 3: For the last several months, Pakistan`s main equity market at Karachi is plagued by abysmally low volumes. The KSE index of 100 shares also represented a sharp plunge. But the volume and not the index decline is the main concern of equity traders.
On Tuesday, the last trading day this week, before the advent of Eid holidays, the volume dipped to 33 million shares.
Replying to queries, Arif Habib, the former chairman of KSE said given the size of Pakistan market, the daily volume should be around 200 million shares or about five to six times the current daily turnover.
He said that investors in shares take the calculated risk of price fluctuations, but not that of liquidity. They want free entry and exit, which he said was difficult when the volumes were thin.
Stock dealers were also keenly watching the net outflow numbers of foreign investment. Up until March this year, the market had witnessed net inflow. Yet the figures of net sales by foreign investors were insignificant when compared with other markets.
Asia has so far seen $16.8 billion in foreign equity outflow in August, with Taiwan and South Korea taking the brunt of the blow. Even the Dallal Street in Mumbai saw investors taking flight with net outflow of $2.4 billion in August.
The enormous figure puts into shade the foreign selling of Pakistani equity worth $41 million net in two months (July-August).
“The selling by overseas investors in the country`s share market is in line with global trend where investors are becoming risk averse, spooked by US and Europe economic issues”, says Mohammad Sohail, CEO at Topline Securities.
Arif Habib said that the net sell by foreigners was nothing to be afraid of. History suggests that local investors have benefited greatly when the overseas investors have become counter-parties.
He recalled that in 2001, the overseas investors had decided to dump equities and they were not the participants between 2002 and 2005, when the market performed well. Wanting to take a slice of cake of the rising equity values, foreigners re-entered only to stall again this year.
The locals have the opportunity to sell stocks at higher prices when the foreigner enters and they are able to buy back at lower prices when they decide to sell.
The top former broker said that he expected interest rates to be cut by 1.5 to 2 per cent during the current financial year, which would be positive for the equity market. Yet if volumes do not swell, many investors may measure risk-return before deciding to select an investment avenue.
Arif Habib said that regulators had been forwarded recommendations that could help improve volumes; some were already implemented and the others were perhaps under consideration.
An equity dealer said the business was not expected to soar when the market opens on Monday as international financial markets were yet to stabilise.
Contributing factors in dull volumes at the KSE in August were the month of Ramazan and the law and order situation which at one point had deteriorated to its worst.
Market gurus push aside suggestions of any similarities between the great crash of 2009 and now. The Pakistani equities had then lost 50 per cent of the value with the index dipping to its lowest at 4,815 points in Jan 2009, from the high of around 12,000 points.
“The current pull back in equity values are more a result of global stock market turmoil and less to the economic numbers or the law and order situation”, says one analyst.

Mohammed Saleem Mansoori

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