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Thursday, 31 May 2012

STOCK MARKET UPDATE: 01.06.2012


STOCK:


Karachi Stocks Down 85.14 Points:
KARACHI, May 31: At close of trading, the KSE-100 index was at 13786.62, down 85.14 points.

May 31, 2012
5 TOP GAINERS  &  LOOSERS:

Rafhan Maize
Rs 20.70
UniLiver Pak
Rs (68.61)
Mithchells Fruit
Rs 15.79
Nestle Pak
Rs (20.44)
Island Textile
Rs 6.10
Shezan Int’l
Rs (9.05)
Attock Refinery
Rs 4.99
Attock Petroleum
Rs (6.71))
Ismail Industries
Rs 4.72
Habib Bank Ltd
Rs (4.72)

Bearish spell continues on stock market
KARACHI, May 31: Stocks further pummelled on the Karachi stock market on Thursday as the KSE-100 index lost another 85.14 points to close at 13,786.62 in thin trade.
Market experts said that foreign equity buying, which amounted to net $3.60 million on Thursday, helped share values rise in early trade.
However, local institutions and individuals were reluctant to commit funds to stocks until the announcement of the Federal Budget on Friday.
A trader said that the investors were also nervous over the fall of rupee against dollar, which many thought could impact some of the major sectors. Analysts were re-evaluating the projected earnings.
Samar Iqbal, equity dealer at Topline Securities, observed that the fall in global markets and weak local currency kept investors on the sidelines. As a result market remained in narrow band with low volumes.
Cement sector remained under focus on conflicting news regarding reduction in excise duty in the new budget. PPL witnessed good activity after news that the government has revised upward its public offering price.
Ahsan Mehanti at Arif Habib Corp commented that uncertain global stocks and commodities, concerns over fall in rupee dollar parity amid macroeconomic instability and uncertainty over Pak-US relations on NATO supply issue played catalyst role in bearish sentiments despite support in cement and power sector on pre-budget speculations.
Hasnain Asghar Ali at Invisor Securities said that the bargain hunters ignored the bleak economic and financial picture being project and cautiously accumulated frontline stocks, which were thought to continue to offer consistent dividend yields and sustained growth in earnings.
Meanwhile, the budget leaks were received with mixed response. Reports indicated that the government had decided to abolish federal excise duty (FED) on 10 items, including cosmetics and filter rods.
The budget makers were thought to have ignored a major budgetary proposal of the Federal Board of Revenue (FBR) that sought to increase the rate of FED in value addition mode from Rs1 per kg to Rs4 per kg on the import of edible oil.
The reports that the government’s failure to release Rs18 billion to a group of eight independent power producers (IPPs) was keeping them from utilising optimal capacity and that FED on cement was expected to be reduced by only Rs100, from Rs500 to Rs400 per ton, against the earlier industry hopes of FED cut to one-half, from Rs500 to Rs250 ton. On the positive side, it was thought that the government would decided to reduce the rate of 20-22 per cent sales tax on nearly 100 raw materials and inputs to standard rate of 16 per cent and the Oil and Gas Regulatory Authority (Ogra) had recommended reduction in price of Petroleum Oil and Lubricant (POL) products by Rs13.24 per litre from June 1.
The KSE-30 index fell 70.28 points to 11,951.07. Turnover slumped further to 125 million shares, from 129 million shares the earlier day.
However, in terms of trading value, there was increase of Rs15 million to Rs5.659 billion, from Rs5.643 billion. Market capitalisation declined by Rs20 to Rs3.528 trillion, from Rs3.548 trillion.
Among 365 active issues, 185 ended in red, compared to 106 in the green zone. The active list was led by DGK Cement, down by 35 paisa to Rs41.14 on 12m shares, Jah Sidd Co fell by 77 paisa to Rs14.85 on 11m shares, Engro Corporation lost another 90 paisa to Rs107.60 on 9m shares.
Lucky Cement shed 9 paisa to Rs126.29 on 8m shares, Engro Foods decreased by Rs3.01 to Rs65.19 on 6m shares, PTCL was lower by 51 paisa to Rs14.81 on 5m shares, Fatima Fertiliser Co shed 16 paisa to Rs24.15 on 4m shares, Fauji Cement down 5 paisa to Rs6.15 on 3m shares, Lafarge Pakistan slid 4 paisa to Rs4.54 on 3m shares and NBP lost 26 paisa to Rs45.09 on 3m shares.

Shares Market perfrom well
ISLAMABAD, May 31: The stock market performed well in the outgoing fiscal year as the KSE 100-index touched the four-year high above 14,000-barrier in May 2012 reflecting confidence of investors in the equity market.
The Economic Survey 2011-12 said that the leading stock markets indices of the world witnessed mixed trends with negative growth of 18.1 per cent in China. However, the KSE 100-index, which stood at 12,496 on June 20, 2011, closed at 14,618 on May 7, 2012, showing a growth of 17 per cent over the closing index of last financial year.
At the capital market the outperforming sectors were oil and gas sector, food producers, chemicals, construction and materials, among these the personal goods comprise of largest sector with 188 companies mostly related to the textile sector with a listed and market capital of Rs54.36 billion.
Another key development at the stock markets during the fiscal 2011-12 was that the government levied Capital Gains Tax on securities at the rate of 8 per cent and 10 per cent for investment holding up to six months and 12 months respectively till June 30, 2014. NCCPL will be depositing the tax with the FBR on an annual basis.
Besides the net investment by the foreign investors in the capital market during July-March 2011-12 reflected a net outflow of $176 million.
“This indicates that bullish trend observed in Pakistani equity market is due to the restoration of the confidence of local investors and institutions,” the economic survey said and added, enactment of demutualisation law will further strengthen the country’s stock markets.
While the second largest capital market of the country Lahore Stock Exchange witnessed an encouraging sign. The turnover of shares on the LSE during July-March 2011-12 was 0.58 billion shares compared to 0.923 billion during the same period last year, but the total paid-up capital increased from Rs888.2 billion in June 2011 to Rs981.7 billion in March, 2012.
The Islamabad Stock Exchange (ISE) witnessed a mixed trend during the first nine months of 2011-12.
MOHAMMED SALEEM MANSOORI

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