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Sunday, 30 October 2011

DAILY STOCK MARKET UPDATE: 31.10.2011


Stock

Karachi Stocks Up 246.36 Points:
KARACHI, Oct 31: The KSE-100 index was at 11808.03, up 246.36 points.

October 28, 2011

TOP  5  SCRIPTS GAINERS AND LOOSERS:
UniLever Pakistan
Rs 147.55
Wyeth Pakistan
Rs (36.01)
Attock Petroleum
Rs 18.21
Colgate Pakistan
Rs (25.49)
P.S.O.
Rs 10.55
Bata Pakistan
Rs (20.46)
National Refinery
Rs 9.25
Nestle Pakistan
Rs (12.87)
Fauji Fertiliser
Rs 8.77
Gadoon Textile
Rs (2.39)

KSE 30 – Shares Index
Previous 10,586.28, Friday’s 10,895.09, plus 308.81 points.
KSE 100 – Shares Index
Previous 11,283.49, Friday’s 11,561.67, plus 278.18 points.
MARKET CAPITALIZATION
Previous Rs2,953.933bn, Friday’s Rs3,021.576bn, plus Rs67.643bn.
VOLUME LEADERS
D.G.Khan Cement 15.201m, Fauji Fertiliser Bin Qasim 6.918m, Fatima Fertiliser 5.738m, Lucky Cement 4.731m, Lotte Pakistan 3.746m shares.
TOTAL VOLUME
81.083m shares
TOTAL
TONE; firm,total listed 638, actives 306, inactives 332, plus 138, minus 86, unchanged
KSE 100-share index gains 278 points
KARACHI, Oct 28: The stock market finished the weekend session on a steady note as investors covered positions under the lead of blue chips in the oil and fertilizer sectors currently ruling well below their previous peak levels and offer an attractive bait of capital gains.
The KSE 100-share index, which has been under pressure throughout the week on foreign selling, ended with smart rallies on the blue chip counters, pushing the benchmark to well above the recent lows at 11,561.67, up 2.47 per cent or 278.18 points.
Much of the rise in the benchmark was contributed by the index-heavy OGDC, which rose by Rs6.63 at Rs139.33 on strong covering purchases followed by the announcement of an interim dividend of 15 per cent for the quarter ended Sept 30, 2011.
Bulk of the covering purchases remained confined to fertilizer sector at the attractively lower levels under the lead of Fauji Fertilizer and Fatima Fertilizer and some blue chips on the other counters, limiting the market decline.
“Most of the leading shares, including those in the oil sector were in the firing range owing to a protracted bearish spell,” analyst Ahsan Mehanti said, and added: “Local bulls covered positions at the lower levels, enabling the broader market to behave orderly”.
The market has been in an oversold position owing to a protracted bearish spell and needed correction that came in the form of short-covering, he said.
In normal conditions though weekend session generally attracts a lot of profit-selling from all and sundry as no one is inclined to hold long positions in view of the financial risks in the intervening official closures, he said, and added technical support limited the early week fall.
Another leading analyst Samar Iqbal hoped that higher corporate earning reports and payouts by most of the leading companies are expected to put the market back on the rails possibly by the next week as the current lower rates offer an attractive bait of capital gains.
Leading gainers were led by Unilever Pakistan and Attock Petroleum, up by Rs147.55 and 18.21, while top losers included Wyeth Pakistan and Colgate Pakistan, off Rs36.01 and 25.49, respectively.
Traded volume rose to 81.083m shares from the previous 70m shares as gainers forced a strong lead over the losers at 138 to 86, with 82 shares holding on to the last levels.
The active list was led by D. G. Khan Cement, up 25 paisa at Rs20.36 on 15m shares followed by Fauji Fertiliser Bin Qasim, higher by Rs2.13 at 59.90 on 7m shares, Fatima Fertiliser, firm by 93 paisa at Rs25.26 on 6m shares, Lucky Cement, higher by Rs2.02 at Rs82.02 on 5m shares, Lotte Pakistan, steady by 10 paisa at 11.16 on 4m shares, Bank of Punjab, firm by 13 paisa at Rs5.77 also on 4m shares, and Fauji Fertiliser, sharply higher by Rs8.77 at Rs184.20 on 4m shares.
They were followed by Engro Corporation, higher by Rs2.49 at Rs112.60 on 4m shares, Arif Habib Corporation, up by Rs1.44 at Rs30.33 on 3m shares and Nishat Mills, higher by Rs1.88 at 42.81 on 2m shares.
FUTURE CONTRACTS: The active list was also led by D. G. Khan Cement, firm by 20 paisa at Rs20.55 on 2.208m shares, its October contract was up by 17 paisa at 20.32 on 1.265m shares followed by both the settlements of Bank AlFalah, steady by 12 and 15 paisa at Rs11.08 and 10.95 on 2.035m and 2.027m shares and Fauji Fertiliser Bin Qasim up by Rs2.26 at 60.48 on 1.552m shares.
DEFAULTER COS: Japan Power led the list of actives, lower by four paisa at Rs0.63 on a large volume of 0.259m shares followed by Ravi Textiles, steady by five paisa at 0.85 on 24,532 shares and S. S. Oils, unchanged at 4.50 on 4,500 shares.
Bears prowl the market during outgoing week
KARACHI: The bears prowled the Karachi stock market for all of the past week, knocking off values from most of the investors’ favoured stocks.
The KSE-100 share index plunged by a massive 463 points and settled at 11,525 points, representing 3.86 per cent loss in the five trading sessions, Monday through Friday.
Market capitalisation declined 3.61 per cent to $26.25 billion from end of the earlier week’s close at $34.94 billion.
Average daily turnover fell 31.27 per cent to 86.11 million shares, from 125.94 million shares a week ago.
The volume in the latest week happened to be lower than the 12-month average of 94.81 million shares.
‘Bad news’ was in ample supply. Yet it was the ‘uncertainty’ that kept investors away.
Analysts at several brokerage houses said that investors were not buoyed in spite of some solid corporate results.
Several external issues were thought to sit on investors’ minds. On the political front, the outcome of US Secretary of State,
Hilary Clinton’s visit to the country on Oct 20 was being closely watched to assess whether the relationship had improved or soured further.
Other than that, investors fret over the prevailing gas shortage for fertiliser sector, which was expected to get worse in winter.
Some market participants suspected that interested quarters may have seized the opportunity to make profit following the Sindh High Court orders to SNGPL for supply of the contracted 100mmcfd gas to Engro’s new plant.
A trader said they weaved an interesting tale around it: If gas supply to Engro is restored, the company would cut back on market price of urea by Rs40 per bag and FFC and FFBL would have no option but to follow suit.
The fertiliser sector earnings would be badly hit. The two scrips on the sector that were rising to the limit for many days and helping index to soar, fell on the floor with a thud. Hence, the sector came down by 5.1 per cent during the week, led by Engro down 13.7 per cent and FFC down by 5.4pc.
Across the board selling was witnessed on the second day of trading after a heavy foreign outflow of $60 million as Xenel, the Saudi based co-sponsor of Hubco quit after selling its entire stake of 12 per cent. Aggregate net foreign outflow during the
week, thus amounted to $67million compared to an outflow of $2.9million the earlier week.
Naveed Tehsin, analyst at JS Global calculated that the net foreign investment for first quarter FY12 clocked in at $236million, down 49 per cent, year-on-year. The analyst observed that the continuing global crisis and stern messages from US Secretary of State, Hilary Clinton overshadowed the impressive corporate results.
Pakistan Oilfields had posted an impressive growth of 55 per cent in profit and Attock Refinery earnings surged by 53 per cent, year-on-year.
Macro releases were largely disappointing. Current account deficit widened to $908 million in Sept, up 4.5 times, the earlier month. Moreover, textile exports during the month were recorded at $982 million, down 10 per cent month-on-month.
Going forward, investor would watch out for EU Summit on Oct 23 that would be critical for eurozone debt debacle. The tone and text of messages from the US Secretary of State in her visit to the country would scare or embolden stock traders.
On the market front, some of the big names: PPL, OGDC, MCB, KAPCO, FFBL, Lucky and Hubco are to announce their July-Sept quarterly results.
Many analysts believe that the trend of earnings and payout by big corporates would determine the direction of the market.
Mohammed Saleem Mansoori

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