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Thursday, 29 December 2011

KARACHI STOCK EXCHANGE-DAILY MARKET TREND: Daily Stock Market update: 30th Dec,2011

KARACHI STOCK EXCHANGE-DAILY MARKET TREND: Daily Stock Market update: 30th Dec,2011: Stock Karachi Stocks Up 91.94 Points: KARACHI, Dec 29: At close of trading, the KSE-100 i...

Daily Stock Market update: 30th Dec,2011



Karachi Stocks Up 91.94 Points:
KARACHI, Dec 29: At close of trading, the KSE-100 index was at 11444.53, up 91.94 points.

December 29, 2011

Nestle Pakistan
Rs 163.56
Al-Abbas Sugar
Rs (3.36)
Siemens Pak
Rs 16.54
J.D.W. Sugar
Rs (2.54)
Indus Dyeing
Rs 13.17
Salfi Textile
Rs (2.24)
Bata (Pak) Ltd.
Rs 9.93
Fauji Fertilize Bin
Rs (1.47)
Al-Ghazi Tractor
Rs 5.54
Ibrahim Fibres
Rs (1.35)

KSE 30 – Shares Index
Previous 10,288.20, Thursday’s 10,318.16, plus 29.96 points
KSE 100 – Shares Index
Previous 11,352.59, Thursday’s 11,435.67, plus 83.08 points
Previous Rs2,945.488bn, Thursday’s 2,966.834bn, plus 21.346bn
NIB Bank 8.704m, WorldCall Telecom 4.470m, Fauji Fertiliser 3.320m, Dawood Hercules 2.994m, Bank of Punjab 2.759m shares.
TONE: Steady, total listed 638, actives 318, inactives 320, plus 133, minus 87, unchanged 98

KSE Index posts gain of 83 points
KARACHI, Dec 29: The shares market on Thursday gave another improved performance as some of the leading shares having potential of capital gains came in for belated short-covering at the lower levels but the underlying sentiment was still a bit uncertain.The KSE 100-share index posted a fresh gain of 83.08 points at 11,435.67 as compared to 11,352.59 a day earlier as some of the base shares managed to finish with an extended gain.
The reports of a massive hike in gas prices from the next month, what the investors called, a new year official gift to the industry did take its toll under the lead of fertiliser sector, one of the major consumers, analysts said.
However, technical compulsions of the fading year needed stray portfolio dressing, which kept the market in a positive mood, although there was no special feature associated with the year-end operations, they said.
All eyes are now seemed to be focused on the new year opening, although leading brokers are not that enthusiastic about it as major depressants on the political front and investors are not inclined to go beyond certain pre-determined limits for obvious reasons.
“The market may witness flutters here and there in the new year trading but inconsistency will remain their hallmark as investors have to be reassured that policy changes are permanent not temporary stimulants,” said a lead broker.
But if the issue of Capital Gains Tax is resolved under the light of amendments suggested by the KSE members, there could be a robust change for the better, they said.
Top gainers were led by Nestle Pakistan and Siemens Pakistan, up by Rs163.56 and 16.54, while Al Abbas Sugar and JWD Sugar fell by Rs3.36 and 2.54 on selling by short-term dealers.
Traded volume figure was slightly on the lower side at 44.561m shares as compared to 46m shares a day earlier, but gainers maintained a strong lead over losers at 133 to 87, with 98 shares holding on to the last levels.
The active list was topped by NIB Bank, steady by 23 paisa at Rs1.72 on 9m shares followed by WorldCall Telecom, firm by 11 paisa at 0.97 on 5m shares, Fauji Fertiliser Bin Qasim, off Rs1.47 at 44.19 on 3m shares, Dawood Hercules, up 75 paisa at 42.30 on 3m shares, Bank of Punjab, firm by 36 paisa at 5.56 also on 3m shares, Hub-Power, steady by 20 paisa at 34.70 on 2m shares and Sui Southern Gas, firm by nine paisa at 19.55 on 2m shares.
They were followed by Fatima Fertiliser, up 37 paisa at 22.91 on 2m shares, National Bank, higher by 61 paisa at 41.85 on 1.259m and Bank Al Falah, firm by 15 paisa at 11.33 on 1.246 shares.
FUTURE CONTRACTS: Both the settlements of Fauji Fertiliser Bin Qasim came in for active selling and fell by Rs1.97 and 1.63 at 44.42 and 44.12 on 0.862m and 0.638m shares followed by both the settlements of National Bank, up 56 paisa and 67 paisa at 42.25 and 41.94 on 0.548 and 0.453m shares respectively and Engro Corporation, lower 31 paisa at 98.21 on 0.401m shares.
DEFAULTER COs: The active list in this sector was led by Sakrand Sugar, off 43 paisa at Rs92 on 0.162m shares followed by SS Oils, higher by one rupee at 7.65 on 87,500 shares, and Dost Steels, easy one paisa at 1.15 on 12,652 shares.
DIVIDEND: The Board of Directors of Habib Sugar Mills have announced cash final payout at the rate of 50 per cent, while Haseeb Waqas Sugar has omitted the dividend for the financial year ended Sept 30, 2011.

KSE elects five broker directors
KARACHI, Dec 29: Brokers at the Karachi Stock Exchange elected five member directors on the board of the bourse at an extraordinary general meeting on Thursday.
The members of the bourse had earlier rejected the apex regulators’ suggestion of increasing the term in office of the board, first to three and then to two years.
The new directors were elected for the term from Jan 1 to Dec 31, 2012, keeping the period unchanged at one year.
Based on the results of the polls, the five candidates who were declared elected in order of the number of votes secured included the following: Mr Abdul Majeed Adam (125 votes), Mr Mohammad Yasin Lakhani (123 votes), Mr Yaqoob Habib (122 votes), Mr Saeed Ahmed Butt (104 votes) and Haji Ghani Haji Usman (102 votes).
A total of 138 members of the exchange caste their votes, out of which 3 ballot papers were declared invalid/rejected, leaving 135 brokers to make their choice.
Earlier, a total of seven candidates had filed nomination papers but one subsequently stepped out of the race, leaving six candidates in the contest.
In its notice, the KSE stated that according to the Articles of Association of the Exchange, four non-member directors would now be required to be nominated by the Securities and Exchange Commission of Pakistan (SECP) for the next term.
The new chairman would be elected from those nominated directors. Mr Nadeem Naqvi, the Managing Director at the KSE, by virtue of his office, would sit on the board as the tenth director.
Mr Yasin Lakhani, a director elect and the veteran at the KSE, has presided over the Board for five times as either the President or the Chairman. Mr Lakhani says he cannot immediately recall how many times he has been on the board as a member since first elected in 1969. He said: “The new elected directors would try to convince policy makers to be practical in promoting business at the capital markets, which can generate a lot of revenue for the country.”

Temasek to sell stake in NIB Bank
SINGAPORE, Dec 29: Singapore state investor Temasek is looking to sell its 88.6 per cent stake in Pakistan`s NIB Bank after heavy losses, the Business Times reported on Thursday quoting a source.
The paper also said NIB had suffered a cumulative net loss of about Rs17 billion ($189 million) since Temasek first invested in the bank in early 2005.
Business Times quoted a Temasek spokesman as saying the firm did not comment on market speculation. The Singapore state investor could not immediately be contacted by Reuters for comment.
Reuters reported last month that Khawaja Iqbal Hassan, who was instrumental in bringing Temasek as an investor, had stepped down as CEO of NIB and that Singapore was looking at a paper loss of about $400 million of its $540 million investment.—Reuters
KSE Broker`s licence suspended
ISLAMABAD, Dec29: The SECP on Thursday suspended the trading licence of Zafar Moti Capital Securities for 15 days and a warning has been issued to the broker that if he failed to pay fine within 15 days, his trading licence will be cancelled.
Zafar Moti was fined Rs400,000 by the Securities Market Division (SMD) of the SECP in October 2009, after the inquiry found him guilty of `wash trade` รข€“ which is being involved in selling and buying of shares by the same firms to show the artificial trading activity and also enhancing the value of the said scrip.
The wash trading was detected by the vigilance team of SECP`s Monitoring and Surveillance Wing, and after the reported illegal activity, an inquiry was conduced by the Securities Market Division, which included various hearings.
The appellate bench of the Commission rejected the appeal filed by Mr Moti on June 17, 2011, and directed him to pay the fine amount.
Mohammed Saleem Mansoori

Wednesday, 28 December 2011

Daily Stock Market update: 29th Dec,2011


Karachi Stocks Up  24.69 Points:
KARACHI, Dec 29: The KSE-100 index was at 11377.28, up 24.69 points. (today 11.48 am)

December 28, 2011

Nestle Pakistan
Rs 155.92
Rs (18.00)
Unilever Pakistan
Rs 80.23
Indus Dyeing
Rs (15.55)
Rafhan Maize
Rs 49.11
Biafo Industries
Rs (3.21)
Bata Pakistan
Rs 15.55
Rs (3.05)
Wyeth Pakistan
Rs 13.38
Shell Pakistan
Rs (2.30)

KSE 30 – Shares Index
Previous 10,275.60, Wednesday’s 10,288.20, plus 12.60 points
KSE 100 – Shares Index
Previous 11,311.38, Wednesday’s 11,352.59, plus 41.21 points
Previous Rs 2,934.468, Wednesday’s 2,945.488bn, plus 11.020bn
Hub-Power 13.817m, Fatima Fertiliser 5.193m, Bank of Khyber 3.356m, Bank of Punjab 2.043m, Sui Southern Gas 2.026m shares.
TONE: steady, total listed 638, actives 314, inactives 324, plus 104, minus 106, unchanged 104

Karachi Stocks lack trading interest on year-end
KARACHI, Dec 28: Share values on the stock market on Wednesday again lacked normal trading interest as leading investors were still in an indecisive mood and could not precisely decide whether or not to go for proverbial year-end, widely known as year-end window dressing operations.
During the previous couple of years, the last week of the fading year used to be hummed with activity as portfolio adjustments were at its peak as everyone was inclined to witness the robust new year opening, said a leading analyst.
But the current year, a terrible victim of political standoff between the major contenders on various issues, will be known as one of the bleakest in its history on more than one counts, he added.
The KSE 100-share index managed to finish with gain of 41.21 points at 11,352.59 points as compared to 11,311.38 a day earlier as some of the leading base shares managed to finish with modest gains under the lead of food group.
Floor brokers said during the last sessions of the current financial year it may add some more points to the closing figure but the widely speculated level of well above the 12,000 points was nowhere in sight.
“News from the political and judicial fronts, notably the memogate issue and a standoff between the major political parties took a massive toll of both turnover and the price decline, keeping the market in uncertain mood,” they added.
Unlike the previous years, payout by some of the sugar mills were on the higher side but failed to generate fresh buying even in their respective sector, some others said.
A final cash dividend at the rate of 50 per cent by Al-Abbas Sugar and 20 per cent final by the Thal Industries Corporation was well-received in the market and omission by the Kohinoor Sugar Mills was ignored.
Prominent gainers were led by Nestle Pakistan and Unilever Pakistan, up by Rs155.92 and 80.23, while among the top losers Dreamworld and Indus Dyeing, off Rs18.00 and 15.55 were leading.
Traded volume showed a sharp rise thanks to strong foreign buying in Hub-Power, up 39 paisa at Rs34.50 on 14m shares followed by Fatima Fertiliser, lower by 45 paisa at 22.54 on 5m shares, Bank of Khyber, up one rupee at 5.40 on 3m shares, Bank of Punjab, firm by 27 paisa at 5.20,on 2m shares, Sui Southern Gas, steady one paisa at 19.46 on also on 2m shares, NIB Bank, steady by three paisa at 1.49 on 2m shares, and JS & Co, lower five paisa at 4.02 on 1.5m shares.
They were followed by Fauji Fertiliser Bin Qasim, lower by 66 paisa at 45.66 on 1.434m shares, Engro Corporation, off 56 paisa at 97.41 on 1.425m shares and Dawood Hercules, up Rs1.97 at 41.55 on 1.077m shares.
FUTURE CONTRACTS: Both the settlements of Engro Corporation were again traded lower by 52 and 37 paisa at 98.52 and 97.67 respectively on renewed selling on 0.661m, and 0.652m shares, followed by Fauji Fertiliser Bin Qasim, off 70 paisa at 45.75 on 0.276m shares, while its January settlement was marked by 61 paisa at 46.09 on 0.243m shares.
Fauji Fertiliser also came in for fresh selling and was marked down by Rs1,35 at 153.03 on 0.257m shares.
DEFAULTER COs: The active list was led by Genertech Power, easy one paisa at Rs0.26 on 13,210 shares followed by Dost Steel, steady by six paisa at 1.16 on 12,056 shares and SS Oils rose by 15 paisa at 6.65 on 4,000 shares.

MTS rules relaxed to improve volumes on bourses
ISLAMABAD, Dec 28: The Securities and Exchange Commission of Pakistan (SECP) has relaxed the Margin Trading System (MTS) with the expectations that it would improve volumes in capital markets of the country.
The government of Pakistan has allowed amendments to the Securities (Leveraged Markets and Pledging) Rules, 2011, which has allowed the corporate sector regulator to make the cash margin requirements rules lenient.
After the amendments, individual investors can also participate as financiers in the Margin Trading System (MTS). However, the eligibility criteria and requirements for the individual investors to participate in the MTS are expected to be finalised by the SECP next week.
“The minimum requirements and risk management issues will be considered in formulating the eligibility criteria,” an official of the SECP said.
“The individual investors would also be required to establish network and prove that they are serious investors who can sustain shocks of the markets.” Currently only the corporate investors are allowed to participate as financiers in the MTS.
The SECP said that the relaxation in the MTS rules would support liquidity for the small investors in the stock markets which would encourage trading activities and improve investor confidence.
The rules, which were promulgated by the Federal Government earlier in February, prescribe a broad regulatory framework for Margin Financing, Margin Trading, and Securities Lending and Borrowing.
The SECP has said that the purpose of introducing these leverage products has been to help boost trading activity in the market and to cater to the financing needs of the capital market while providing retail investors with an easy access to financing against shares.
The amended rules also relax the earlier mandatory condition of depositing at least 25 per cent equity participation in the form of ‘cash only’ by those obtaining the finance in MTS. The commission is expected to finalise the new minimum cash margin requirement in the coming week.
“The new requirements would be 15 per cent cash participation and 10 per cent collateral in the form of shares to be deposited by those borrowing finance under MTS,” said an official of the commission. “But these shares will be in selected companies with necessary ‘haircut’.” Haircut terminology is used to determine the value of shares at lower than the market rates.
The amendments also remove the mandatory condition of prescribing minimum liquidity requirement for selecting securities eligible for Margin Financing (MF), and the SECP expects that it will encourage more securities to be available for funding under MF and generate more trading activity.
“A balance is required in the market under the prevailing conditions,” the official said adding, “while liquidity is required in the market, the need for effective risk management cannot be ignored.”

KSE loses 670 points in 2011
KARACHI, Dec 28: Two sessions remaining to the end of 2011, the Pakistani stocks are seen to have lost 6 per cent in the year 2011 with the KSE-100 index down by 670 points, closing Wednesday at 11,353 points.
Along the year, market participants attributed the dismal market conditions to various factors, the outstanding among them being economic morass, political uncertainty, law and order situation and country’s relationship with the US.
But irrefutable reasons for the dismal market performance that continued throughout the year were low daily trading volumes and foreign sale of equity.
During the year, net foreign portfolio outflow amounted to $122million. A small net buy of $0.47 million by overseas investors on Tuesday, after weeks of net sale triggered a bit of excitement, but resumption of sale of $0.33 on Wednesday poured cold water over hopes of rejuvenation of foreigners’ interest or at least putting a plug to the outflow.
“In any case, Fund managers would be celebrating the Christmas and New Year holidays. No mood change should be expected until their return to the trading desk in Jan,” says an analyst.
Mohammad Imran, head of equity sales at Arif Habib Limited, however, offers some comforting words. He points out that Pakistan stocks were not the only to be plummeted by the bears.
“Major regional indices witnessed a decline of approximately 20 per cent,” says he.
The ongoing European sovereign debt crisis and slowdown in US economic growth has made stocks a riskier class of asset, weakening both developing and emerging markets.
Compared to other regional and emerging markets, the Pakistani equity loss, therefore, looks but a pittance. It was the nervousness over global equity sell-off that seeped into the local market, resulting in accelerated foreign sale.
For stock brokers, the year has been a nightmare with volumes of trade contracting by 34 per cent in 2011 over the previous year. Daily volume dipped to 80 million shares, from 121 million shares last year.
“Most brokerage houses find it difficult to make two ends meet,” says a stock broker, who closed down the research department to cut costs.
A couple of liquid stocks have managed to attract much of the volume.
On Wednesday the stock in Hub Power Company saw trading in 13.8 million shares that accounted for as much as 37 per cent of the day’s aggregate volume of 46 million shares.
A day earlier, the market had seen business slump to over a year low at 19.6 million shares.
“Compared to around a billion shares traded prior to the crash of 2008, consider the market as closed,” says a broker.
Late on Wednesday evening, an announcement by the Securities and Exchange Commission of Pakistan was made to the effect that the apex regulator had allowed relief to the Margin Trading System (MTS) market with relaxed cash margin requirements and participation of individual investors as financiers.
The Regulator observed that the amendment in the Securities (Leveraged Markets and Pledging) Rules, 2011 rules were made as “continuous efforts to develop the capital market in the country and to support liquidity for encouraging trading activity and engendering investor confidence.”
The amended rules would empower the regulator to prescribe lenient cash margin requirements and allow individual investors to participate as financiers in the MTS. That had been one of the long standing demand of market participants.
“It has, however, to be seen if the step helps to generate volumes, going forward,” said a cautious, levelheaded broker.

Mohammed Saleem Mansoori

Thursday, 22 December 2011

Daily Stock Market update: 23rd Dec,2011


Karachi Stocks Up 50.47 Points:
KARACHI, Dec 23: The KSE-100 index was at 11,356.57 up 49.19 points.(today 11.17 am)

December 22, 2011

UniLever Pak Ltd
Rs 146.93
Millat Tractors
Rs (9.04)
Nestle Pakistan
Rs 128.40
Al-Ghazi Tractor
Rs (9.03)
Siemens Pak
Rs 37.23
Indus Dyeing
Rs (5.40)
Wyeth Pak Limited
Rs 37.13
Rs (2.82)
Engro Corporation
Rs 4.33
Pak Oilfields
Rs (2.79)

KSE 30 – Shares Index
Previous 10,308.09, Thursday’s 10,360.69, plus 52/60 points
KSE 100 – Shares Index
Previous 11,268.55, Thursday’s 11,306.10, plus 37.55 points
Previous Rs.2,922.213bn, Thursday’s 2,932.983bn,plus 10.770bn
Engro Corporation 5.152m, Fatima Fertiliser 3.354m, Fauji Fertiliser 2.376m,Hub-Power 2.159m, Fauji Fertiliser 1.958m shares..
TONE: steady, total listed 638, actives 288, inactives 350, plus 119, minus 72, unchanged 97
KSE Index recovers 37.55 points at 11,306
KARACHI, Dec 22: The shares market on Thursday shrugged off the overnight hesitancy and was back on the rails aided by active short-covering in most of the pivotals under the lead of fertiliser sector.
Some positive political developments, notably reports that the president is back in Islamabad and has resumed his official duties, was another positive development, ending uncertainty amid various rumours, analysts said.
A sharp recovery of well 37.55 points, which pushed it up well above the chart point of 11,000 reflected that investors may have taken the cue of the future share business outlook and resumed year-end buying.
The benchmark ended the session at 11,306.10, up 37.55 points as compared to 11,268.55 a day earlier as leading base shares have resumed their recovery drive.
The rally was led by the hereto massively battered Engro Corporation followed by reports of price rise of Rs100 per bag by its management and it was actively followed by Fauji group of fertilizer companies and Fatima Fertiliser.
“I presume the presence of foreign interest on selected counters at the current lower levels, notably on the oil counter,” speculates a leading stock analyst Samar Iqbal. “It may be technical covering purchases but many may not rule out its presence though on a modest scale.”
But the market advance was again led by the fertiliser sector despite reports of guess cess, fall in production and reports of closure of some of the units, another analyst Ashan Mehanti observes.
“The fertiliser sector seems to have assumed the role of a market trend-setter on the pattern of oil counter,” he said. But interestingly it was despite its small size as compared to the oil giants, which dominated the group, he added.
Leading gainers were led by Unilever Pakistan and Nestle Pakistan, up Rs146.93 and 128.40, while losers were led by Millat and Al-Ghazi Tractors, off Rs9.04 and 9.03, respectively.
Traded volume fell further to 33.212m shares from the previous 47m shares but gainers held a lead over the losers at 119 to 72, with 97 shares remaining unchanged at their previous levels.
The actively was topped by Engro Corporation, up by Rs4.33 at 98.54 on 5m shares followed by Fatima Fertiliser, firm by 35 paisa at 23.17 on 3m shares, Fauji Fertiliser, higher by Rs1.92 at 154.35 on 2.378m shares, Hub-Power, steady by eight paisa at 34.58 on 2m shares, Fauji Fertiliser Bin Qasim, higher by 48 paisa at 47.59 on 2m shares, Lotte Pakistan, higher by 33 paisa at 9.67 on also on 2m shares, and Japan Power, steady by two paisa at 0.67 on 2m shares.
They were followed by JS & Co, unchanged at 4.19 on 1.406m shares, Attock Refinery, up 30 paisa at 110.08 on 1.053m shares and National Bank, up 51 paisa at 41.19 on 0.867m shares.
FUTURE CONTRACTS: Engro Corporation also led the list of actives on this counter and was marked up by Rs4.22 at 98.76 on 1.855m shares followed by Fauji Fertiliser, higher by Rs2.02 at 154.92 on 0.805m shares and Fauji Fertiliser Bin Qasim, steady by 41 paisa at 47.62 on 0.495m shares.
National Bank followed them, up 48 paisa at 41.26 on 0.323m shares and Attock Refinery, firm by 25 paisa at 110.44 on 0.248m shares.

Mohammed Saleem Mansoori