DAILY STOCK MARKET UPDATE:27.10.2011

Stock

Karachi Stocks Down 130.07 Points:
KARACHI, Oct 26: At close of trading, the KSE-100 index was at 11387.22, down 130.07 points.

October 26, 2011

TOP  5  SCRIPTS GAINERS AND LOOSERS:

Nestle Pakistan	Rs 72.14	Rafhan Maize	Rs (107.50)
Bata Pakistan	Rs 34.50	Unilever Pakistan	Rs (55.90)
Indus Motors	Rs 4.49	Siemens Pak	Rs (48.63)
Pak-Suzuki Motors	Rs 2.71	National Refinery	Rs (14.37)
Biafo Industries	Rs 2.05	P.S.O.	Rs (10.21)

KSE 30 – Shares Index	Previous 10,896.20,Wednesday’s 10,697.54, minus 198.66 points
KSE 100 – Shares Index	Previous 11,517.29, Wednesday’s 11,387.22, minus 130.07 points
MARKET CAPITALIZATION	Previous Rs.3,016.606bn, Wednesday’s 2,982.170bn, miuns 34.36bn
VOLUME LEADERS	Fatima Fertiliser 17.300m shares, Fauji Fertiliser Bin Qasim 11.661m, Lotte Pakistan 6.415m, D.G. Khan Cement 3.893m,Fauji Fertiliser 3.829m shares.
TOTAL VOLUME	80.940m shares
TOTAL	TONE: easy, total listed 638, actives 321, inactives 317, plus 55, minus179, unchanged 87

Stocks plunge by 130 points on profit-taking

KARACHI, Oct 26: The shares market on Wednesday fell across the board on active selling originating from all the quarters under the lead of foreign investors and local investors.
Dividend news was on the higher side but it failed to enthuse investors who were more interested in profit-taking.
Nestle Pakistan came out with an interim dividend of 250 per cent, Soneri Bank, bonus shares at the rate of 12.50 per cent, MCB, third interim 30 per cent, Biafo Industries, interim 12.50 per cent but Telecard omitted the payout for the year ended June 30.
The prevailing panic for no apparent bearish reason is well reflected in the 1.13 per cent or 130.07 points decline in the KSE 100-share index at 11,387.22 as most of the top base shares remained under pressure and chipped away Rs35 billion from the market capital at Rs2,982.170 billion.
The market decline was again led by the fertiliser sector, which of late, has assumed the role of market trend-setter under the lead of Fauji Fertiliser, Fauji Fertiliser Bin Qasim and Fatima Fertiliser and some other pivotals on the other counters.
But opinions are divided over the protracted bearish spell despite higher corporate earning reports. Some say continued foreign selling at the inflated levels, both in the fertiliser and oil shares, was the chief reason behind the market fall.
But a leading analyst Samar Iqbal believes that the rollover of outstanding positions of October future contracts to the ruling November settlements appears to be the chief reason behind the market sluggishness as it paves the way for lot of selling to settle the outstanding positions.
Fresh massive fall of well over Rs5 in leading base shares, such as Fauji Fertiliser, Engro Chemical, Fauji Fertilizer Bin Qasim and Nishat Mills took the entire market along with a deeper recession.
Presence of strong support at the dips signals that the war of nerves between the bulls and the bears, which is currently at its peak, is technically-motivated and did not reflects panic among investors, analyst Ahsan Mehanti said.
“The market is moving within its technical parameters, both on the lower and higher sides”, he said, and added: “Indications are that the benchmark has already touched its pre-determined low and could rebound from the current lows even tomorrow.”
For the last couple of weeks, the benchmark is hovering between 12,000 points on the higher side and 11,000 on the lower side and in-between investors play according to their perceptions about the future market outlook, he added.
Analyst Ashraf Zakaria said the leading market trend-setters have already hit their lower levels and could boost the index from the current lows any time as was reflected by the presence of strong support at the falling prices. Losers dominated the list under the lead of Rafhan Maize, off Rs107.50 and Unilever Pakistan, Rs55.90, while Nestle Pakistan
and Bata Pakistan managed to finish with sharp gains ranging from Rs72.14 and 34.50, respectively.
Traded volume rose to 80.940m shares from the previous 69m as gainers trailed far behind the losers at 55 to 179, with 87 shares holding on to the last levels.
The active list was topped by Fatima Fertiliser, lower 40 paisa at Rs24.25 on 17m shares followed by Fauji Fertiliser Bin Qasim, sharply lower by Rs3.02 at 59.26 on 12m shares, Lotte Pakistan, easy by 35 paisa at 11.61 on 7m shares, DG Khan Cement, off Rs1.11 at 21.11 on 4m shares, Fauji Fertiliser, sharply lower by Rs5.28 at 173.06 also on 4m shares, Nishat Mills, lower by Rs2.08 at Rs40.42 on 3m shares, and Engro Corporation, off Rs5.29 at 110.20 on 3m shares.
They were followed by JS & Co, lower 24 paisa at 4.83 on 3m shares, Arif Habib Corporation, lower by Rs1.53 at 29.30 also on 3m shares and Bank Al Falah, easy 26 paisa at 10.89 on 2m shares.
FUTURE CONTRACTS: Sharp fall and large volumes in both the settlements of Fauji Fertilizer, Engro Corporation and Fauji Fertilizer bin Qasim again featured the trading on the forward counter on renewed selling.
The active list was topped by Fauji Fertilizer Bin Qasim, off Rs3.04 and 3.01 for both the settlements at Rs59.30 and 59.82 on 2.714m and 1.519m shares, respectively.
Fauji Fertilizer and Engro Corporation both settlements were marked down by Rs5.32 at Rs5.75 and 5.59 in that order on light volume.
DEFAULTER COS: The active list was led by Ravi Textiles, unchanged at Rs0.87 on 39,735 shares followed by Japan Power, easy four paisa at 0.71 on 38,682 shares and Invest Bank, easy two paisa at 0.27 on 15,958 shares.

Mohammed Saleem Mansoori