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Monday, 16 April 2012

STOCK MARKET UPDATE: 17.04.2012







Stock


Karachi Stocks Down 20.62 Points:
KARACHI, Apr 16: At close of trading, the KSE-100 index was at 13778.81, down 20.62 points.

April 16, 2012
 5 TOP GAINERS  &  LOOSERS:

UniLever Pak Ltd

Rs 48.76

Nestle Pakistan

Rs (74.11)

Colgate Palmolive

Rs 35.60

Bata (Pak)

Rs (13.74)

Bhanero Tex

Rs 5.57

Sanofi-Aventis

Rs (6.55)

Lucky Cement Ltd

Rs 5.43

MCB Bank Ltd

Rs (6.17)

Packages Limited

Rs 5.23

Ferozsons (Lab)

Rs (3.82)



Bearish spell continues on stock market

KARACHI, April 16: Shares at the stock market closed on a bearish note after one of the most volatile sessions. The KSE-100 index conceded 28.72 points on Monday, from the 105.69 points gained on last Friday.
The KSE-30 index was up 20.16 points to 12,085.60 points, while the market capitalisation went down to Rs3.532 trillion, from Rs3.538 trillion. Volume declined 31 per cent in terms of number of shares traded to 261m shares, from 380m shares the previous day and in terms of value by almost Rs2.6bn to Rs6.23bn from Rs8.86bn on Friday.
Market participants said that the tone was set early in the day when the index dipped into the red only to recover much of the day’s loss. Two points were thought to be prominent in determination of market direction. Firstly, the SBP monetary policy that had kept rate unchanged at 12 per cent, but making it mandatory for banks to pay at least 6 per cent return to depositors, up from 5 per cent, analysts thought would impact earning forecasts. Banking sector shares came under great deal of pressure with most big names losing value.
Secondly, investors were unhappy over the government’s delay in the declaration of reformed Capital Gains Tax (CGT) rules.
“When it is a matter settled after taking all stakeholders on board, what is the point in delaying the official order,” asked an irate broker.
Investors did take note of the prime minister’s assertion that the federal cabinet in its next meeting would discuss the priorities of the federal budget and thought something good may come out it for the corporate sector as well.
Also the prime minister saying that the PML-Q Chief Ch Shujaat had suggested to him that the federal and provincial governments should pool their resources to resolve the issue of circular debt was thought to be good omen in solving the perennial debt issue.
Traders thought that the foreign investors had actually saved the day. In addition to the huge net buying of $4.16 million worth equity last Friday, the overseas net inflow into equity market on Monday again stood tall at $3.26 million.
Samar Iqbal, equity dealer at Topline Securities, commented that the market had remained volatile throughout the day. Index which fell by around 200 points at one point in time, but recovered after media reports suggest that the CGT Ordinance may not be delayed further.
Cement stocks remained in the limelight where Lucky Cement and DGK Cement ended on its upper limits. Banking stocks were under pressure after state bank decision to increased minimum rate on saving deposits.
Losing scrips at 143 led the 141 gaining shares with 76 remaining at their previous level, among a total of 360 active stocks.
UniLever Food saw the biggest gain of Rs48.76 to Rs5,873.33, followed by Colgate Palmolive, up by Rs35.60 to Rs790.60. The biggest fall was witnessed in Nestle Pak, down by Rs74.11 to Rs4,281.97 and Bata (Pak) by Rs13.74 to Rs620.42.
The active list was led by Jah. Sidd. Co, which lost 98 paisa and closed at Rs17.79 on 29m shares. In the second position was Fauji Cement which added 61 paisa to close at Rs6.76 on 26m shares.
Dewan Cement gave up 19 paisa and closed at Rs6.27 on 20m shares. DG Khan Cement added Rs1.88 to close at 40.30 on 17m shares.
Lafarge Pakistan gained 33 paisa to close at Rs5.24 on 14m shares while PTCLA lost 12 paisa to close at Rs12.96 on 11m shares.
Azgard Nine added 9 paisa to close at Rs8.49 at 11m shares. Arif Habib Co gained Rs1.58 to Rs34.33 on 8m shares, NIB Bank lost 11 paisa to close at Rs2.56 on 8m shares while Engro Polymer gained 57 paisa to end at Rs12.68 at 8m share.


Stocks end down; rupee weakens; o/n rates up

KARACHI: Pakistani stocks ended lower on Monday, led by the banking sector after the State Bank of Pakistan raised the minimum deposit rate on savings accounts to 6 per cent from 5 per cent.
The decision by the central bank on Friday came at the same time it announced its monetary policy for the next two months, keeping the key policy rate flat at 12 per cent.
“This move will have a significant impact on banks’ profitability, as savings deposits account for nearly 38 per cent of all bank deposits, and 52 per cent of the total number of deposit accounts,” said Sayem Ali, economist at Standard Chartered Bank.
The Karachi Stock Exchange (KSE) benchmark 100-share index fell 0.2 per cent, or 28.72 points, to end at 13,770.70.
Volume was 261 million shares, compared with 380 million shares traded on Friday.
Among banking stocks, NIB Bank ended 4.5 per cent lower at 2.55 rupees, the National Bank of Pakistan  fell 3.5 per cent to close at 46.30 rupees and Bank Al Falah closed 2.1 per cent lower at 15.75 rupees.
In the currency market, the rupee ended weaker at 90.70/75 to the dollar, compared with Friday’s close of 90.65/70.
In Friday’s monetary policy statement the central bank said the external sector is likely to remain under pressure because of both external debt payments and a lack of foreign aid.
Pakistan’s current account deficit widened to $2.95 billion in the first eight months of the 2011/12 fiscal year, compared with $194 million over the same period the previous year.
The current account deficit in February was $260 million, compared with a deficit of $98 million in February 2011. The deficit stood at $364 million in January 2012.
“We expect the fiscal year 2011/12 current account deficit to widen to $4.6bn (2 per cent of GDP), with higher debt payments adding to pressure on the rupee,” said Ali from SCB.
“We forecast that it will weaken further to 92 by June and 96 by December 2012, adding to inflation risks.”
Overnight rates in the money market rose to end between 11.75 per cent and 11.90 per cent, compared with Friday’s close of between 10.50 per cent and 11 per cent, amid tight liquidity in the interbank market.

ANNOUCEMENTS/COMPANY NEWS:
1. Engro president quits: KARACHI, April 16: Asad Umar, President of fertiliser-to-food conglomerate, Engro Corporation has taken an early retirement.

Such an event is scarcely surprising, for men at the top of corporate ladder often do.
The Engro announcement on Monday said nothing of Asad’s plans for the future, beyond: “After more than 27 years with Engro, Asad Umar has decided to take early retirement and pursue other interests.”
Many corporate barons said they knew what those “other interests” were that Asad planned to pursue, but the majority was either amazed or amused by one of the most well-known corporate boss taking a plunge into politics.
But Asad has been seen hobnobbing with politicians and has had a close peep into the corridors of power.
Quitting what must be an exceedingly well-paid job at one of the top corporate in the country, makes many wonder if politics was actually his first love.
A graduate of IBA of the batch of 1984, Asad joined Exxon Chemical Pakistan in February 1985 and rose to the rank of President and CEO of Engro in 2004.
The company lavished praises on the outgoing boss in a statement released on Monday: “In his eight years as President and CEO of Engro Corporation, Mr Umar has dramatically transformed a chemical company into a major Pakistani conglomerate.”
While to the many corporate executives it was a settled issue that Asad would enter politics, the route was not quite confirmed.
But several sources informally suggested that he was most likely to embrace Imran Khan and his Pakistan Tehriq-i-Insaaf (PTI).

The likely date of announcement, some thought, could be April 21, when Asad is scheduled to speak at a seminar organised under the banner of Insaf Professional Forum–apparently an arm of the PTI. Nadir Leghari, President, PTI Sindh, would be the chief guest at the seminar and Asad would speak on: ‘what should be a national agenda of a political party in Pakistan?’
Taking his time off the corporate responsibilities, Asad has been writing for newspapers for many years. In one of his article published on March 26, 2009 and titled Ummed-i-sahar ki baat suno, he wrote: There are two different kinds of challenges being thrown at the status quo. One is from the overwhelming mass of citizens who want a Pakistan that is just, prosperous, peaceful and egalitarian, and run according to the Constitution of the country where supremacy is of law, not of persons. The other challenge comes from a small minority with a narrow vision which is willing to use the gun to force their point of view on others.” And he wrote: “I invite all my fellow citizens to become engaged in this process of change and the battle for the soul of the country. Remember: Khud-ba-khud toot ke girti nahi zanjeer kabhi, Badli jati-hai, badalti nahi taqdeer kabhi.”
In an earlier article on Sept 10, 2008: ‘Focus on the system’, he wrote: “Our wait for the man on horseback who will come and rescue us from all our problems and challenges is never going to end in anything but disappointment.” For a son of a General, expression of such thoughts and spending hours in custody while hitting the road during ‘movement for restoration of judiciary,’ were already startling events.
So does he now see dust settling and that horseman come galloping in the form of IK?
Of course Asad has never been the Prime Minister, but he held the chair of “Young Presidents’ Organisation”. Also in a programme “Who will be the prime minister’ on a private TV channel sometime ago, Asad beat several known names in face-to-face arguments and was declared the PM. It would be too ambitious to contemplate the rise to that rank so early in life for even if the party of his choice comes to power, several worldly wise-old politicians are ahead of him. And brilliance may not altogether be enough; there has to be constituency. Except for some big part of corporate sector, the number of his supporters would only be known when he stands on the dais and raises his hands.

MOHAMMED SALEEM MANSOORI

1 comment:

  1. What about the thought that maybe cash flows (dividends + stock buybacks, as you define them) are so high because stock buybacks are at all time highs - which in turn have been fueled by ultra-low interest rates themselves.
    Karachi Stock Exchange 100 Index

    ReplyDelete