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Tuesday, 13 March 2012



Karachi Stocks Up 142.71Points:

KARACHI, Mar 14: The KSE-100 Index was at 13426.36, up 142.71 points.  (today 11.21am)

March 13, 2012



Rs 42.50

Indus Dyeing

Rs (21.13)

Bata Pakistan

Rs 15.33

Attock Petroleum

Rs (6.05)


Rs 7.11

Tri-Pack Films

Rs (5.12)

Mithchell’s Fruit

Rs 6.88

EFU Life

Rs (4.25)

National Foods

Rs 5.26

Service Industries

Rs (3.83)


KSE Index loses 99 points on profit-selling

KARACHI, March 13: A strong pull back was witnessed on the stock market on Tuesday, after a streak of gains that had carried the index and volume to recent record high.
The KSE 100-index declined by 98.89 points to close at 13,283.65 and the volume plunged to 314 million shares, which amounted to 54 per cent of the Monday’s turnover at 577m shares.
But the greater significance lay in the fall in the KSE-30 market capitalisation based index, which was down for the fifth day, recording a heavier loss of 144.63 points.
Investors wondered if it signified a drop in value of heavy-weights in the oil and gas, fertiliser and cement sectors that had the propensity to pull down the entire market. “How long would the implementation of the reformed Capital Gains Tax (CGT) regime from April 1, manage to charm investors?” an investor was thinking aloud.
As in the past number of sessions, about one-half the volume was attributed to ‘low-priced’ or ‘penny stocks’. But noticeable feature was that of all 10 volume leaders, as many as eight ended in plus category.
Analyst Ahsan Mehanti at Arif Habib Corporation commented that the stocks had closed lower amid institutional profit-taking in overbought market post major announcements. He thought that the index had closed near session’s lows on concerns for
rising government debt and uncertain global commodities.

Sibtain Mustafa, analyst at Elixir Securities observed that equities had undergone correction in the absence of major headlines that left stocks to open with modest losses.
Lack of leadership then left the broader market to muddle along with oil stocks slipping on low volumes in late hours. Overall, volumes in second and third tier scrips slowed with major participants taking a break.
Equity dealer Samar Iqbal at Topline Securities also thought that the market had taken a correction after stocks hit the four-year high.
UniLever Pakistan was the biggest gainer for the day, rising by Rs42.50 to close at Rs5,742.50 followed by Bata Pakistan up by Rs15.33 to Rs648.33.
The heaviest loser on Tuesday was Indus Dyeing down Rs21.13 at Rs405.63 and Attock Petroleum shedding Rs6.05 to end at Rs437.34.
Volume leader was TRG Pakistan, up by 40 paisa at Rs4.36 on 31m shares. It was followed by Jah.Sidd.Co gaining Re1 at Rs15.66 on 26m shares, NIB Bank down 12 paisa at Rs2.91 on 24 million shares, JS Bank higher by 42 paisa to Rs6.80 on 13m shares, Azgard Nine adding 11 paisa at Rs7.26 on 11m shares, JS Investments up by Re1 at Rs8.43 on 10m shares, Arif Habib Co higher 17 paisa to Rs32.63 on 10m shares, Samba Bank adding 36 paisa at Rs2.95 on 10m shares, Soneri Bank firm by 24 paisa at Rs6.75 on 9m shares and Fauji Cement down 15 paisa at Rs5.30 on 8m shares.
FUTURE CONTRACTS: Most active on the March future counter was Arif Habib Corp up 15 paisa at Rs32.81 on 3.0m shares.
It was followed by DGK Cement down 18 paisa at Rs31.01 on 1.9m shares, Engro losing Rs2.75 at Rs111.99 on 1.5m shares, FFBL adding 46 paisa at Rs46.31 on 1.2m shares and NBP down 50 paisa at Rs55.05 on 1.1m shares.
DIVIDEND: Pakistan International Container Terminal (PICT) announced interim cash dividend at 125 per cent for year ending June 30, 2012 on ordinary shares.

Stocks end lower; rupee weakens; o/n rates flat

KARACHI: Pakistani stocks ended lower on Tuesday and volume fell from a six-year high reached a day earlier as cautious investors sold shares at higher levels to book profits, dealers said.
The Karachi Stock Exchange (KSE) benchmark 100-share index fell 0.74 per cent, or 98.89 points, to 13,282.65 points.
Turnover fell to 186.2 million shares, compared with 576.82 million shares traded on Monday, its highest since 2006.
“There was some profit taking in shares that have been performing well in the previous sessions, such as Engro Corp and NIB Bank,” said Shuja Rizvi, a dealer at brokers’ Al-Hoqqani Securities.
NIB Bank ended 2.97 per cent down at 2.91 rupees and Engro Corp shed 2.84 per cent to close at 146 rupees.
In the currency market, the rupee ended weaker at 90.74/77 to the dollar compared to its close of 90.68/73 on Monday because of increased import payments.
The rupee was supported this week by increased remittances from overseas Pakistanis, which rose 23.4 per cent to $8.59 billion in the first eight months of the 2011/12 fiscal year, compared with $6.96 billion in the same period last year.
In February, overseas Pakistanis sent back $1.16 billion.
Dealers expect some pressure on the rupee because of rising global oil prices. Oil was trading above $125 a barrel on Tuesday.
The rupee touched a record low of 91.28 to the dollar in January, dragged down by concerns over higher payments for oil imports and Pakistan’s overall economic health.
There was also concern on the trade deficit, which widened by 41 per cent to $14.6 billion in the first eight months of the 2011/12 fiscal year, compared with $10.34 billion in the same period the previous year, the Pakistan Bureau of Statistics reported.
Exports in the July-Feb period totalled $15.19 billion, and imports were $29.79 billion.
Dealers said they were also cautious after the International Monetary Fund advised Pakistan to take immediate steps to tackle growing budget pressures and raise interest rates to contain inflation.
The central bank kept the key policy rate flat at 12 per cent for the next two months in its monetary policy announcement in February.
The IMF last month projected a widening of Pakistan’s budget deficit in the 2011/12 fiscal year to 7 per cent of gross domestic product, compared with the government’s revised budget target of 4.7 per cent.
In the money market, overnight rates were unchanged at their top level of 11.90 per cent amid tight liquidity in the interbank market.


1. Fatima Fertilizer restructures equity

KARACHI, March 13: In a notice released at the stock exchanges on Tuesday, Fatima Fertilizer stated that the company had given notice to its preference shareholders that it was redeeming 200m preference shares of the value of Rs2 billion, out of total 400m preference shares held by sponsors.
A second notice said that the company had notified to convert the remaining 200m preference shares to ordinary shares.
“Preference shareholders of the balance face value of Rs2bn have given notice to the company to exercise their option to convert their preference shares into ordinary shares.
The preference shareholders have offered to convert shares of the face value of Rs10 at Rs20 or at a discount of 20 per cent to the weighted average price of 60 days from the date of notice.
“It is hereby informed that the ordinary share to be issued in lieu of preference shares shall be pari passu in every respect except they will not be eligible for dividend declared by the company for the year ended Dec 31, 2011,” the company stated.
Farhan Mahmood, analyst at Topline Securities, commented that according to the estimates, the redemption of 200m shares would eventually have a net positive impact of Re0.10 per share on company’s annualised earnings.
This mainly arrives from the difference between the dividend amount payable to the preference share-holders and the opportunity cost of cash and cash equivalent.
And the analyst said in respect of the second notice, the conversion of 200m from preference shares to ordinary shares would dilute earnings going forward.
A day earlier on Monday, the company had declared maiden cash dividend at 15


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