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Thursday, 29 March 2012

DAILY STOCK MARKET UPDATE: 29.03.2012


Stock



Karachi Stocks Down 19.83 Points:
KARACHI, Mar 27: At close of trading, the KSE-100 index was at 13273.29, down 19.83 points.
 March 28, 2012
5 TOP GAINERS  &  LOOSERS

 

Unilever Pakistan

Rs 17.38

Nestle Pakistan

Rs (61.41)

Indus Dyeing

Rs 15.38

Colgate Pakistan

Rs (42.80)

Millat Tractors

Rs 6.43

Bata Pakistan

Rs (24.02)

Sapphire Fibres

Rs 5.27

PICT

Rs ( 7.08 )

Pakistan Petroleum

Rs 4.68

Shezan Intl

Rs (4.03)

 

KSE 100-index gains another 125 points

 

KARACHI, March 28: The stock market on Wednesday consolidated previous gains on active follow-up support on selected counters but instances of profit-selling at the inflated levels were not wanting.
The benchmark KSE 100-index managed to put on a fresh sharp rise of 125.68 points at 13,375.41 as most of the leading base shares in the oil and some other sectors were traded higher on renewed support.
Where the index will settle before the reformed Capital Gains Tax takes effect on April 1 is anybody’s guess but some analysts think it could confidently settle close to its next target of 14,000.
Leading base shares remained in active demand barring some fertiliser shares, notably Engro Corporation but cement shares came in for fresh support on reports of higher export sales and so did food shares, notably Unilever Foods and oil shares under the lead of Pakistan Oilfields, Pakistan Petroleum, Attock Petroleum and some others came in for active support and kept the market in a positive mood.
The bulk of the activity again remained confined to the low-priced sector under the lead of Azgard Nine and TRG Pakistan followed by some others, which together accounted for a half of the total turnover.
Floor brokers said investors were, however, not inclined to miss the active sector, which has recently assumed the role of a market trend-setter in term of volume leaders.
“Investors seemed to be in a mood to keep the market in a good shape until April 1 when the keenly-awaited reformed CGT leads the market,” they said.
Analysts said the reformed CGT may have certain positive points but the pre-advent buying euphoria or optimism linked to it may not address all the negatives facing the market just in one-go.
Plus signs again led the list under the lead of Unilever Pakistan and Indus Dyeing, while losers were led by Nestle Pakistan and Colgate Pakistan, off Rs61.41 and Rs42.80 respectively.
The traded volume soared to 450.238m shares from the previous 353m shares as gainers held a modest lead over the losers at 158 to 153 with 64 shares holding on to the last levels.
The active list was led by Bank of Punjab, off Re1 at Rs10.47 on 36m shares followed by Azgard Nine, lower 55 paisa at Rs9.32 on 33m shares, JS & Co, up 79 paisa at Rs22.39 on 32m shares and TRG Pakistan, firmer by 15 paisa at Rs4.33 on 27m shares.
Lafarge Pakistan, easy one paisa at Rs3.96 on 21m shares, Bank Alfalah, higher by 88 paisa at Rs16.06 on 20m shares and Fauji Cement, easy by four paisa at Rs5.51 on 19m shares.
They were followed by Soneri Bank, higher by 81 paisa at Rs6.17 on 18m shares, D.G. Khan Cement, up 90 paisa at Rs34.59 on 17m shares and Arif Habib Corporation, lower 19 paisa at Rs32.16 on 15m shares.
FUTURE CONTRACTS: The active list on this counter was led by D.G. Khan Cement on strong buying aided by higher earnings, up 89 paisa at Rs34.97 on a large volume of 7.030m shares followed by its March settlement, up also by the same amount at Rs34.63 on 2.356m shares and Arif Habib Corporation, lower 14 paisa at Rs32.50 on 2.025m shares.
They were followed by Bank Alfalah, higher 92 paisa at Rs16.33 on 1.723m shares and Engro Corporation, off 79 paisa at Rs103.03 on 1.336m shares.
DEFAULTER COMPANIES: Mixed trend was witnessed on this counter as investors played on both sides of the fence under the lead of Dadabhoy Cement, off 28 paisa at Rs1.72 on 0.287m shares followed by Quice Foods, higher by 45 paisa at Rs5.23 on 1.489m shares and Dost Steels, easy 11 paisa at Rs2.63 on 0.100m shares.
Other actives were led by Genertech Power, up 16 paisa at Rs1.63 on 0.140m shares, Kohinoor Industries, firm by four paisa at Rs1.73 on 41,616 shares and Kohinoor Power, easy by 18 paisa at Rs2.60 on 24,505 shares.

 

Demutualisation to be completed in 4 months


ISLAMABAD: The stock exchanges would be corporatised and demutualised in four months ending the reign of brokers by segregating the ownership and trading rights at the bourses, Securities and Exchange Commission of Pakistan Chairman Muhammad Ali said on Wednesday.
Addressing a press conference, the SECP chairman informed about the transition process after the demutualisation law is finally implemented after the presidential assent.
“The major advantage of demutualisation of stock exchanges is that the brokers would not have 100 per cent ownership rights.
Once the process is complete, a certain percentage of shareholding would remain with the brokers. Whereas the general public and strategic investors would obtain shareholding of the stock exchanges, which would be turned into companies,” Ali said.

“The status of the stock exchanges would be changed from limited by guarantee to the public limited company. The public limited companies themselves would be listed on the stock exchanges, and ultimately segregate ownership and trading rights,” he explained. He further said that an investment bank of international repute would be appointed for evaluation of the stock exchanges after demutualisation.
Responding to a query on the merger of stock exchanges, the SECP chairman said that the merger will be the decision of stock exchanges.
“The stock exchanges desirous of integration/merger or to merge into one entity will be required to submit a scheme of integration to the commission. The SECP shall have the powers to approve the scheme of integration and effectuate transfer of rights and obligations as if the scheme was approved by the court.”
After demutualisation of stock exchanges, the only way to increase value of shares is by increasing profitability of the stock exchanges.
“When general public will come into the stock exchanges, the confidence of the investors will further increase and values of the shares would show further improvement,” Ali said.
He said that brokers control will also come to an end as they are required to fulfill the stringent fit and proper criteria and cannot have automatic trading rights by virtue of being member of the exchange.
The management of the stock exchanges would be able to work independently without being influenced by brokers which is a good omen for investors as well as general public, he commented.
Under the law, up to 40 per cent shares would be offered to the strategic investors and local financial institutions, general pubic would be offered 20 per cent shares and 40 per cent shares would be offered to the brokers.
Another major feature of demutualisation is that the composition of the board of directors of the stock exchanges will be changed, with the management, board and shareholders becoming independent.
After demutualisation, out of 10 directors, six directors will be nominated by the SECP from private sector whereas the remaining four directors would be elected.
“It would bring balance among interest of different stakeholders in the corporate and governance structure of the stock exchanges,” Ali said.
“These steps to open up the stock markets would result in expanding the outreach of capital markets and would attract investors from small cities and far flung areas.” The SECP chairman hoped that the supervision and enforcement functions would become more effective after demutualisation of exchanges.
He further informed that new memberships at stock markets would not open for at least another three years after demutualisation law is enforced. “The SECP is planning to launch various categories of memberships after the period to increase participation of investors.”

MOHAMMED SALEEM MANSOORI

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