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Tuesday, 24 April 2012

STOCK MARKET UPDATE: 25.04.2012






Stock


Karachi Stocks Up 49.15 Points:
KARACHI, Apr 24: At close of trading, the KSE-100 index was at 14132.59, up 49.15 points.


April 24, 2012
 5 TOP GAINERS  &  LOOSERS:


UniLever Pak Ltd

Rs 149.43

Wyeth Pak Ltd

Rs (37.71)

Rafhan Maize

Rs 113.88

Bata (Pak)

Rs (31.57)

Colgate Palmolive

Rs 29.13

Island Textile

Rs (15.35)

Pak Services

Rs 6.59

Kohat Cement

Rs (4.55)

Unilever Food

Rs 6.07

Service Ind.

Rs (4.14)


Karachi Stocks extend overnight gains
KARACHI, April 24: Stocks continued to march ahead on Tuesday, the day following the close of KSE-100 index above the 14,000 points level after four years on Monday.
The KSE-100 index added 49.15 points on Tuesday to settle at 14,132.59 points, with healthy volumes. But wide fluctuations demonstrated that the market was looking for triggers to climb higher.
Foreign investors were on the sell side with net outflow of $1.01 million worth equity, but ‘companies’ and ‘individuals’ category of investors bought, respectively, $2.20 and $2.41 million worth shares, which balanced out the offloading by other investors.
The major factor driving shares higher was a beeline of healthy corporate results and the rumour of signing of reformed Capital Gains Tax by the president within the next 24 hours.
Analyst Hasnain Asghar Ali at Invisor Securities observed that the positive momentum on the rumours suggesting likely approval of the long awaited SRO confirming amnesty for the funds invested in the equity market for at least 120 days, allowed the benchmark index to sustain above the 14,000-level.
Yet the decline in turnover with improving values on the benchmark restricted aggressive accumulation on strength. Post result sell-off was witnessed mainly in the banking stocks, which forced the index to close with clipped gains.
There was possibility of likely off-loading due to stagnation amid roll-over period, which could be seized as an opportunity for accumulation of choice stocks on dips. Analysts reckoned that the materialisation of SRO might allow substantial rise in turnover, allowing index to hold above the 14,000-level.Technically speaking, KASB Securities and Economics Research noted that although the index registered a higher high, it took resistance from its trend line. “Its formation is potentially bearish.
Volatility is likely to remain high and a retest of its former breakout level of 14,000 points cannot be ruled out,” analysts said.
Ahsan Mehanti at Arif Habib Corp observed that stocks closed bullish led by oil and banking stocks on strong quarter-end earning announcements. Higher global commodities, renewed investor interest on strong earnings outlook played a catalyst role in bullish sentiments despite concerns for falling global stocks, delay in implementation of revised CGT regime and uncertainty over outcome of judicial probes.
Samar Iqbal, equity dealer at Topline Securities, said that the institutional selling was seen as the index crossed the 14,000-mark after a gap of four years. Volumes remained confined mainly to cement stocks.
DG Khan Cement fell due to institutional selling while active trading was seen in Lafarge and Fauji Cement. Banking stocks also remained in the limelight after good profits declared by banks for the March quarter.
Turnover rose to 297 million shares on Tuesday, from 213 million shares traded the previous day. Value-wise turnover rose sharply to Rs8.86 billion, from Rs5.37 billion. Market capitalisation increased to Rs3.617 trillion, from Rs3.606 trillion on Monday. Plus signs at 171 dominated the minus at 145 with 56 stocks closing unchanged in a total of 372 active scrips.
UniLever Pak was the biggest gainer for the day with Rs149.43 to Rs6261.25, followed by Rafhan Maize up by Rs113.88 to Rs2,615.32. The declining shares were led by Wyeth Pak, down Rs37.71 to Rs730.00 and Bata (Pak) losing Rs31.57 to Rs655.49.
Three cement stocks were volume leaders on Tuesday, together accounting for 81m shares or 27 per cent of the aggregate turnover for the day. DG Khan Cement was in the lead with 36m shares recording a steep decline of Rs2.12 paisa to Rs42.59.
Lafarge Pakistan fell 11 paisa to Rs5.49 on 25m shares, Fauji Cement shed 23 paisa to Rs6.81 on 21m shares, PTCL gained 13 paisa to Rs14.25 on 20m shares, NBP gave up 19 paisa to Rs49.29 on19m shares, Jah. Sidd. Co edged lower by 6 paisa to Rs18.39 on 15m shares, BOP added 6 paisa to Rs10.01 on 15m shares, Bank Alfalah also stepped up by 9 paisa to Rs17.58 on 14m shares, Nishat Mills rose 57 paisa to Rs58.91 on 10m shares and Askari Bank added 23 paisa to Rs15.39 on 7m shares.


ANNOUCEMENTS/COMPANY NEWS:
1.Three (3)big banks post handsome profits: KARACHI, April 24: Little provisioning against the infected loans helped three big banks — MCB Bank, HBL and ABL — to exhibit surging profits in the first quarter (January-March) of this calendar year.
The MCB Bank announced on Tuesday that it posted unconsolidated earnings of Rs5.6 billion for the three months ending March 31, 2012 (EPS Rs6.14) as against profits of Rs5 billion (EPS Rs5.46) in the corresponding period of last year, registering an increase of 12 per cent.
The bank also announced a first interim cash dividend of Rs3 per share.
The JS Research said in its report the MCB Bank’s net interest income declined by two per cent on year-on-year basis in 1Q to Rs10.7 billion as mark-up interest paid rose by 36 per cent to Rs6.8 billion. It said the total provisions and write-offs came well below expectation at only Rs91 million.
Net markup income of the bank was reported at Rs10.7 billion whereas non-markup income increased by 20 pre cent to Rs2.4 billion. Administrative expenses witnessed an increase of 11 per cent over corresponding period last year. However, there was a significant decrease in the provisioning expense of 94 per cent.
Habib Bank Limited: The HBL posted unconsolidated earnings of Rs5.6 billion (EPS Rs4.65) in the first quarter (Jan-March) of 2012 as against earnings of Rs4.7 billion (EPS Rs3.88) in the same period last year, showing an increase of 20 per cent on year-on-year basis.
No payouts were announced with the result.
The Net Interest Income (NII) of HBL rose by 7 per cent on year-on-year basis to Rs13.8 billion while provisions and write-offs fell by 55 per cent to Rs1.1 billion.
Restrictive lending and decline in interest rates allowed the bank lesser provisioning of Rs1.1 billion during the period under review compared to last year’s Rs2.3 billion.
Allied Bank Limited: ABL announced a profit-after-tax of Rs3 billion (EPS Rs3.22) in the three months ending March 31, 2012, posting an increase of 21 per cent on year-on-year basis.
The bank announced an interim cash dividend of Rs2 per share.
According to the results the bank posted a 21 per cent year-on-year decline in net interest income to Rs4.9 billion and a 100 per cent surge in non-interest income on higher dividend income. It showed a reversals of Rs610 million for diminution in the value of investments.
The results of the three big banks reflected the same trend and the same path that earns them profits. These banks showed little provisioning against the loans mainly because the banks have been taking little risk to lend money to private sector while most of their interest income is still coming out of investment they make in the government papers.
MOHAMMED SALEEM MANSOORI

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