Daily Stock Market update: 13 Dec,2011

Stock

Karachi Stocks Up 12.51 Points:
KARACHI, Dec 12: At close of trading, the KSE-100 index was at 11,477.125, up 12.51 points.

December 12, 2011

TOP  5  SCRIPTS GAINERS AND LOOSERS:

Colgate Palmolive	Rs 24.90	Unilever Pakistan	Rs (49.76)
Millat Tractors	Rs 16.83	Fazal Textiles	Rs (9.00)
Nestle Pakistan	Rs10.87	National Refinery	Rs (8.55)
Al-Ghazi Tractor	Rs 8.70	Engro Corporation	Rs (4.45)
Murree Brewery	Rs 3.04	Gadoon Textile	Rs (2.07)

KSE 30 – Shares Index	Previous 10,654.48, Monday’s 10,598.16, minus 56.32 points
KSE 100 – Shares Index	Previous 11,464.61, Monday’s 11,477.12, plus 12.51 points
MARKET CAPITALIZATION	Previous Rs2,982.210bn, Monday’s 2,974.200bn, minus 7.910bn
VOLUME LEADERS	Fauji Fertiliser 4.339m, Lotte Pakistan 3.575, ZGARD Nine 3,567m, JS & Co 3.274m, National Bank 3.068m shares..
TOTAL VOLUME	45.753m shares
TOTAL	TONE: mixed, total listed 638, actives 306, in-actives 332, plus 107, minus 114, unchanged 85

Karachi Stocks manage modest gain of 12.51 points.

KARACHI, Dec 12: The stock market on Monday resumed trading on a steady note on active follow-up support aided by reports of higher year-end earnings, but instances of profit-taking at the inflated levels were not wanting.
“It appears to be the extension of the weekend rally on renewed short-covering on blue chip counters, some analysts said and added “the general perception is that year-end buying could keep the market in a good shape, despite showdown with the US on some national issues.”
The KSE 100-share index ended with an extended gain of 12.51 points at 11,477.125 as compared to 11,464.61 at the last weekend as some of the leading base shares managed to finish with fresh gains.
An idea of firm opening may well be had that early it rose to 11,608.18, up about 144 points as compared to previous close by late selling in the leading base shares in the oil sector pushed it sharply lower, and it added only 12.51 points to the previous total.The base shares, which kept the benchmark in a good shape despite late selling in some of the pivotals included fertiliser and banks shares under the lead of Fauji Fertiliser, Attock Petroleum, and OGDC.
“Investors appear to be in the process of evaluating the possible negative or positive impact of blockade of oil supplies to the Nato forces in Afghanistan and likely impact on the local prices if it found its way in local supply network at some stage,” asks a leading stock analyst Ahsan Mehanti.
And to it is highly volatile rupee-dollar parity having an adverse impact on the foreign investment in the local stocks, he said.
But news from the political front were not that encouraging as the battle of wits with the US continued through press statements, said another analyst Samar Iqbal and added “that is perhaps why return of the president after two weeks failed to enthuse investor at least for the near-term.
“Having a fair idea of the US policy of stick and carrot towards Pakistan, foreign investors are staying on the sidelines and may await some real breakthrough before resuming normal activity,” he said.
Leading gainers were led by Colgate Pakistan and Millat Tractors, up Rs24.90 and 16.83, while top losers included Unilever Pakistan and Fazal Textiles, off Rs49.76 and 9.00.
Traded volume showed a modest rise at 45.753m shares as compared to previous 46m shares but losers held a modest lead over the gainers at 114 to 107, with 85 shares holding on to the last levels.
The active list was topped by Fauji Fertiliser, off Rs1.14 at 157.69 on 4m shares, followed by Lotte Pakistan, steady by 38 paisa at 9.56 also on 4m shares, Azgard Nine, firm by one paisa at 3.26 on 4m shares, JS & Co, steady 12 paisa at 5.19 on 3m shares, National Bank, up 88 paisa at 41.78 also on 3m shares, Fauji Fertiliser Bin Qasim, easy 64 paisa at 49.14 on 3m shares, and Fatima Fertiliser, unchanged also on 3m shares.
Other actives were led by Engro Corporation, off Rs4.45 at 107.84 on 3m shares, PTCL, lower by 10 paisa at 10.14 on 2m shares and OGDC, up 43 paisa at 157.46 also on 2m shares.
FUTURE CONTRACTS: Engro Corporation came in for fresh selling on reports of supply of gas problems, off Rs4.66 at Rs.108.53 on 1.116m shares followed by Fauji Fertiliser, off Rs1.39 at 158.23 on 0.976m shares and National Bank, up 91 paisa at 41.99 on 0.691m shares.They were followed by Fauji Fertiliser Bin Qasim, lower by 58 paisa at 49.32 and Attock Refinery, off Rs2.08 at 113.67 on 0.240m shares.
DEFAULTER COs: The activity on this counter remained slow in the absence of demand and as a result most of the scrips ended unchanged.
Dadabhoy Cement led the list of actives, off 39 paisa at 1.50 on 20,848 shares followed by SS Oils, up 51 paisa at 6.50 on 17,000 shares, Genertech Power, easy six paisa at 0.31 on 16,006 shares and Saritow Spinning, easy 11 paisa at 0.99 on 15,516 shares.

NIT assures of no heavy stock selloff

KARACHI, Dec 12: National Investment Trust (NIT) the country’s largest mutual fund reassured the market on Monday that it was not weighing the option of a huge sell off to meet the debt liability (Rs20 billion) initially due in January.
Wazir Ali Khoja, Chairman and Managing Director NIT, said that the government and all stakeholders wanted NIT-State Enterprise Fund (NIT-SEF) to continue to play its role for which it was created to support the stock market.
“In this regard the government has conveyed its willingness to extend the period of guarantee to the lending institutions who have already given their consent for the extension of period of financing to NIT”, Mr Khoja said.
He ruled out the possibility of an impending heavy sell off by NIT to pay the loans obtained for launching of NIT-SEF.
Market makers said that the NIT chief had perhaps stepped forward to calm the market, by reassuring nervous investors, who feared an avalanche of sales orders in most major scrips, from NIT to raise money for debt repayment. According to the initial agreement, the Fund was supposed to repay loan of the huge sum of Rs20 billion in January, next year.
Giving his account of the background, Khoja observed that NIT-SEF was launched in January 2009 to support the stock market by investing into stocks of eight listed state enterprises in which government has substantial shareholding.
The Fund was launched to support the stock market at a time when it was passing through unprecedented crises and the KSE-100 Index had dipped to around 6,000 levels. After the launch of the Fund, the market started a fast recovery and reached 7,200 level as on June 30, 2009, within a period of just five months.
The NIT MD said that from then onwards, the Fund had been playing a significant role in stabilising the stock market whenever the need for support was felt.
“The Fund succeeded in achieving its objective and today the KSE-100 is trading at around 11,500 points”, the NIT chairman said, adding that the Fund, due to its timely and prudent investment decisions, had also managed to achieve a splendid return of 136 per cent (since inception till Dec 9, 2011), thereby outperforming its benchmark KSE-100 index by a significantly wide margin of 46 per cent.
Khoja pointed out that the stock market was currently passing through a difficult phase on account of low volumes which, he said, indicated that the reasons for which the Fund was launched still existed. Therefore, all the stakeholders including the government had reposed confidence in NIT and were interested to see the Fund functioning normally to support the stock market, he concluded.
Analysts recalled that the State Enterprise Fund was launched with Rs20 billion, given as loan to NIT on sovereign guarantee of the government in January 2009 for a three year period. The purpose was to stabilise the market at the depth of its despair.
The sum was raised through borrowings from NBP, EOBI, SLIC and a consortium of banks. The new fund NIT-SEF bought shares of eight state-owned entities, which included Oil and Gas Development Company; Pakistan State Oil; Pakistan Petroleum Limited; Sui Northern Gas Pipelines; Sui Southern Gas Company; Kot Addu Power Company; National Bank of Pakistan; and Pakistan Telecommunication Company Limited.
The reassurance by the NIT chairman clears the air, thick with suspicion of an imminent disposal of stocks in bulk by the Fund. But an analyst said that what has been publicly declared was known for sometime, as the major creditors had already given the Fund an extension.
And that made sense, because an unprecedented huge sell off by the Fund in heavyweight stocks, to pay debt at this dull moment for the market, would have sent stocks reeling down, hurting all stakeholders including the creditors.

Mohammed Saleem Mansoori