STOCK MARKET UPDATE: 01.12.2011

Stock

Karachi Stocks Up 64.43Points:
KARACHI, Nov 30: The KSE-100 index was at 11597.19, up 64.43 points.(Today 10.11 a.m.01.12.2011)

November 30, 2011

TOP  5  SCRIPTS GAINERS AND LOOSERS:

Bata Pakistan	Rs 14.94	Siemens Pakistan	Rs (24.74)
Unilever Pakistan	Rs 9.80	Bhanero Textiles	Rs (10.53)
Nestle Pakistan	Rs 3.25	National Refinery	Rs (7.78)
Abbot Lab	Rs 2.98	Sanofi-Aventis	Rs (7.59)
Attock Petroleum	Rs 2.74	Exide Pakistan	Rs (5.32)

KSE 30 – Shares Index	Previous 10,764.72, Wednesday’s 10,800.24, plus 35.52 points
KSE 100 – Shares Index	Previous 11,506.95, Wednesday’s 11,532.83 points, plus 25.88 points
MARKET CAPITALIZATION	Previous Rs.2,996.548bn, Wednesday’s 3,003.359bn, plus 6.811bn
VOLUME LEADERS	J.S.& Co 5,815m, Fatima Fertiliser 4.148m, D. G. K. Cement 3.153m, PICIC Growth Fund 2.673m, Fauji Fertiliser Bin Qasim 1.869m shares.
TOTAL VOLUME	38.491m shares
TOTAL	TONE: steady, total listed 638, actives 304, inactives 334, plus 125, minus 86, unchanged 93

Karachi Stocks extend overnight rally

KARACHI: The stock market on Wednesday extended the overnight rally but physical activity was a bit slow ahead of policy statement by the central bank on discount rate and the economy.

However, an air of optimism prevailed on certain quarters about the fresh downward revision of the discount rate as was reflected by active short-covering on some blue chip counters.
The KSE 100-share index managed to put on another modest gain of 25.88 points at 11,532.83 points as some of the leading base shares were traded further higher.
Although some of the leading base shares, notably in the oil sector and some other blue chips aided the bench mark to maintain a steady posture despite weakness of the leading fertiliser shares, the future market trend is expected to be guided by the State Bank`s review of the economy, analyst Ahsan Mehanti said.
Some other market trend-setters on the higher side, notably Fauji Fertiliser, Fauji Fertiliser Bin Qasim and some others remained under pressure on fears of tax on gas consumption and increase in prices to this sector, one of the major consumer, analyst Samar Iqabal said.
But some others said optimism about a fresh cut in the discount rate as demanded by the major trade bodies just at the heels of previous big downward revision of 1.5 basis points appears to be a distant possibility but it did play a positive role in keeping the market in an optimistic mood.
But the volume figure did not show any increase and remained stuck to the overnight level, reflecting `wait and see` policy as investors awaited the announcement of the monetary policy for the next two months.
Plus signs again dominated the list under the lead of Bata Pakistan and Unilever Pakistan, up by Rs14.94 and 9.80, while among the top losers, Siemens Pakistan and Bhanero Textiles, off Rs24.74 and 10.53 were leading.
Traded volume was maintained around the overnight level of 38.491m shares as gainers held a strong lead over the losers at 125 to 86, with 93 shares holding on to the last levels.
The active list was topped by JS & Co, up 25 paisa at Rs5.83 on 6m shares followed by Fatima Fertiliser, steady by 17 paisa at 23.12 on 4m shares, DG Khan Cement, firm by 31 paisa at 20.75 on 3m shares, PICIC Growth Fund, up 30 paisa at 12.57 on 3m shares, Fauji Fertiliser Bin Qasim, lower 32 paisa at 54.11 on 2m shares, Arif Habib Corporation, firm by 29.15 on also on 2m shares and Engro Corporation, up Rs1.62 at 128.86 on 1,172m shares.
They were followed by Fauji Fertiliser, off Rs1.48 at 163.99 on 1.158m shares, Japan Power, easy by four paisa at 0.60 on 1.140m shares and Lotte Pakistan, lower by three paisa at 9.76 on 1.139m shares.
FUTURE CONTRACTS: Engro Corporation came in for renewed support and was marked up by Rs1.54 at 128.37 on 0.672m shares followed by Fauji Fertiliser, off Rs1.70 at 165.61 on 0.598m shares, and Attock Refinery, steady 11 paisa at 120.42 on 0.462m shares. They were followed by Fauji Fertiliser Bin Qasim, lower by 34 paisa at 51.85 on 0.351m shares and DG Khan Cement, up 39 paisa at 20.98 on 0.279m shares.
DEFAULTER COs: The activity on this counter remained slow in the absence of investors and prices showed fractional either-way changes.
Redco Textiles came in for stray support at the previous rate of 0.30 on 7,000 shares followed by Quice Foods, easy six paisa at 3.56 on 3,500 shares and Mukhtar Textiles, up 13 paisa at 0.30 on 2,008 shares.
Others showed minor changes without any significant deal.

KSE okays market development measures

KARACHI: A meeting of the board of directors of Karachi Stock Exchange was held on Tuesday, which took some important decisions in regard to market development.
Significant among them were to grant approval, in principle, for the development of trading platform and system for Government Securities (T-Bills and PIBs) through the KSE and also to approve, in principle, the ‘Concept Paper’ for creation of Small & Medium Enterprises (SME) Board.
The Concept Paper would be submitted to the Securities and Exchange Commission of Pakistan (SECP) for approval.
The KSE notified on Wednesday the other decisions taken by the board, which included the approval of Revised Terms of Reference (TOR) of Index Experts Committee of the Exchange and the ratification of proposal on ‘Proposed margin relief to members’ as deliberated by the authorised Board members/management with the representatives of SECP and submitted to the Commission for their further consideration.
The board also accorded its consent to the following new/revised Regulations and regulatory amendments, subject to the approval of SECP: (i) New Regulations to be called as “Regulatory Monitoring and Compliance of Brokers’, which would be put in place of the existing System Audit Regulations (The draft Regulations to be put up on KSE website for stock brokers consideration) and (ii) Amendments in Market Making Regulations to allow relaxation in minimum equity requirement and enhanced sharing of transaction cost (called “Laga”) by the Exchange with the market maker.
The board also decided to grant approval of Risk Management Gateway (RMG) that is being developed by KSE Information Technology (IT) Division. Also, the declaration of conflict of interest in matters to be deliberated by the Voluntary Delisting Committee by its members was suggested by the board.
The proposal to allow an additional Universal Identification Number (UIN) to each brokerage house to specifically cater to rectify erroneous trades was approved by the board.
It was also considered and decided to make a representation to FBR for appropriate treatment of tax on the income/profit being earned by the financier under Margin Financing, Margin Trading and Securities Lending & Borrowing.
In regard to the long-term investment, the board also approved proposal of listing of Term Finance Certificates (TFCs) on KSE, which were already listed on other stock exchanges, with lesser documentary requirement and payment of listing fee duly rationalised, conditional upon all future debt securities being simultaneously listed on all stock exchanges.
And finally, the board suggested ratification of amendments by SECP in Risk Management Regulations as previously approved by the board in relations to allowing individual shareholder of a brokerage house to utilise his securities for meeting shortfall in margin/ mark-to-market losses requirement of other UINs.

Mohammed Saleem Mansoori