STOCK EXCHANGE UPDATE:12.01.2012

Stock

Karachi Stocks Down 2.69 Points:
KARACHI, Jan 11: The KSE-100 index was at 10,930.49, down 2.69 points. 

January 11, 2012

TOP  5  SCRIPTS GAINERS AND LOOSERS:

Colgate Pakistan	Rs 30.54	Unilever Pak Ltd.	Rs (120.52)
Mitchell’s Farms	Rs 4.09	Nestle Pakistan	Rs (66.51)
Al-Abbas Sugar	Rs 3.93	Millat Tractors	Rs (3.46)
National Refinery	Rs 3.62	Salfi Textile	Rs (2.06)
Fauji Fertiliser	Rs 3.19	Fazal Textiles	Rs (2.00)

KSE 30 – Shares Index	Previous 10,061.44, Wednesday’s 100,68.49,plus 7.05
KSE 100 – Shares Index	Previous 10,933.18, Wednesday’s 10.930.49, minus 2.69 points
MARKET CAPITALIZATION	Previous Rs.2,845.252bn, Wednesday’s2,844.834bn, minus 418m
VOLUME LEADERS	Fauji Fertiliser Bin Qasim 3.290m, Hub-Power 2.346m, Fauji Fertiliser 1.928m,National Bank 1.307m, Engro Corporaion 1.195m shares.
TOTAL VOLUME	23.057m shares
TOTAL	TONE; mixed, total listed 638, actives 319, inactives 319, plus 122, minus 87, unchanged 110

Stocks fall 2.69 points amid cautious trading

KARACHI, Jan 11: The shares market on Wednesday did not give violent reaction to Supreme Court verdict as was widely speculated and behaved orderly amid cautious trading.
The fractional fall of 2.69 points at 10,930.49 in the benchmark showed that investors hated to indulge in panic selling, but rather were buyers at lower levels on some ofthe counters under the lead of fertiliser and oil sectors.
But the chief stabilising factor appears to be the revival of demand in the index heavy, OGDC, after a massive battering during the last couple of sessions, which pushed it down by about Rs15. It ended with a gain of 64 paisa at135.24 on 0.178m shares. `I would say the investor reaction to the verdict was terribly balanced but it was certainly cautious and based on calculated interpretations on the future political landscape, analyst Ahsan Mehanti said.
However, the fact that the market did not react in a haste and investors have full overview of the post-verdict unfolding political scenario and what is at stake as far as share business is concerned, he added.
But analyst Samar Iqbal said revival of demand on some of the blue chip counters indicates that investors may be looking for a better future backed by political stability after Thursday`s National Assembly`s consensus reactionto the ruling.Prominent gainers were led by Colgate Pakistan and Mitchell`s Fruit Farms, up by Rs30.54 and 4.09, while losers were led by Unilever Pakistan and NestlePakistan, off by Rs120.52 and 66.51, respectively.
Traded volume fell to 23.057m shares from the previous 44m shares but gainers held a strong lead over the los-ers at 122 to 87, with 110 shares holding on to the last levels.
The active list was led by Fauji Fertiliser, up Rs1.43 on 3,290m shares followed byHub-Power, easy 34 paisa at 33.34 on 2.346m shares, Fauji Fertiliser, higher by Rs3.19 at 158.98 on 2m shares, National Bank, off 56 paisa at 42.88 on 1.307m shares, Engro Corporation, steady by 13 paisa at 95.51 at 1.195m shares, Lotte Pakistan firm by 13 paisa at 9.97 on 1.178m shares and Fatima Fertiliser, steady five paisa at 22.83 on 1.106m shares.
They were followed by PTCL, up 22 paisa at 10.25 on 0.966m shares, WorldCall Telecom, firm by seven paisa at 1.01 on 0.908m shares and DG Khan Cement, steady by nine paisa at 19.63 on 0.560m shares.
FUTURE CONTRACTS: Fauji Fertiliser Bin Qasim alsocame in for active short-covering on this counter and was marked up by Rs1.44 at 43.59 on 0.724m shares followed by Fauji Fertiliser, higher by Rs3.20 at 159.92 on 0.688m shares and National Bank easy 59 paisa at 43.19 on 0.585m shares.
They were followed by Engro Corporation, easy six paisa a 96.05 on 0.391m shares and OGDC, higher by 64 paisa at 135.24 on 0.178m shares.
DEFAULTER COs: Saritow Spinning led the list of actives, steady by 4 paisa at Rs1.67 on 32,233 shares followed by Genertech Power, easy by seven paisa at 0.28 on 12,385 shares and Azam Textiles, higher by 26 paisa at 1.34 on 7,522 shares.

4 directors on KSE board nominated

KARACHI, Jan 11: The Securities and Exchange Commission of Pakistan on Wednesday nominated the four outside directors on the Board of the Karachi Stock Exchange for one year term to Dec 31, 2012.
The names are the same as last year. Those include: Mr Muneer Kamal, Shazad G Dada, Asif Qadir and Abdul Qadir Memon.
The SECP stated that the directors had also served on the KSE Board last year as independent directors and their appointment could “be seen as a fair balance of the requisite qualifications and skills on the board”.
The apex regulator said that it was expected that the KSE Board in particular and the capital markets in general, would continue to benefit from the mix of extensive knowledge, global experience and diverse expertise that the nominated professionals possess.
“It is hoped that the directors will continue to contribute positively to promoting principles of good governance, transparency and will be instrumental in bringing about various capital market reforms,” the top regulator observed.
Earlier on Dec 29 last year, a total of 135 brokers had participated to elect five member (broker) directors to the KSE Board.
Those included Mr Abdul Majeed Adam, Mohammad Yasin Lakhani, Yaqoob Habib, Saeed Ahmed Butt and Haji Ghani Haji
Usman.
The new board would serve for one year term; the KSE members having turned down the proposal of the regulator to increase the term first to three and then to two years.
Mr Nadeem Naqvi, the Managing Director at the KSE, by virtue of his office, would sit on the board as the tenth director.
As per the rules, one of the four directors nominated by the SECP would be elected to chair the Board. Mr Muneer Kamal held the post of chairman last year.

KSE relaxes rules for ‘short selling’

KARACHI, Jan 11: The Karachi Stock Exchange on Wednesday announced amendments in ‘short selling’ regulations, which it said would allow the market participants to execute their short sale orders without any price check (up tick or zero tick).
“However, all short sale orders can be placed based on prior borrowed transactions in the short sold securities through Securities Lending and Borrowing (SLB) system available at the National Clearing Company of Pakistan Limited (NCCPL).
Market participants said that it was yet another attempt to bolster the volume of trade at the exchange, which was hitting the pit; a mere 23 million shares changed hands on Wednesday.
The easing of rules to deal in short sales though a step in the right direction, some market commentators thought it was really the second step and that the bourse ought not to have skipped the first.
Mohammad Sohail, CEO Topline Securities, explains that the system should focus more on the development of Securities Lending and Borrowing (SLB) market also because with the SLB market totally dead, no one would be able to short sell in the market. “The biggest issue with the SLB market,” he said, “is tax implications and lack of awareness among market participants”.
The KSE amendments announced on Wednesday briefly defined included: (a) short sale under ready market shall take place through the Karachi Automated Trading System (KATS) and (b) short sale will only be permissible on up tick or zero-plus tick.
The exchange, however said that notwithstanding anything mentioned in sub-clause (b) above, short sale shall be allowed without up-tick or zero-plus tick up to the following extent.
UIN-wide position: a UIN will be allowed to make short sale to the maximum extent of two per cent of average daily turnover of the respective security of previous one month.
Member-wide position: A member for his all UINs including its clients’ positions will be allowed to make short sale to the maximum extent of four per cent of average daily turnover of the respective security of previous one month and in regard to market-wide positions, all members on cumulative basis would be allowed to make short sale in the maximum extent of 40 per cent of average daily turnover of the respective security of previous one month.
The KSE stated that the exemptions mentioned above would not be available in the following cases: when the price of a security declines up to 2.5 per cent from the closing price of the previous day, the exemptions would not be available for the remainder of the day, when lower circuit breaker as prescribed and amended from time to time in Regulations Governing Risk Management of the exchange becomes applicable on the closing price of a security.
The exemptions shall not be available for the next two working days and finally when lower circuit breaker, becomes applicable on the closing price of a security consecutively for five working days, the exemptions would not be available for next fifteen working days after the fifth working day. The System would go live effective Feb 6 through the KATS.

Mohammed Saleem Mansoori