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Sunday, 6 May 2012

STOCK MARKET UPDATE: 07.05.2012




Stock


Karachi Stocks Up 3.53 Points:
KARACHI, May 07: The KSE-100 index was at 14615.81, up 3.53 points.

May 4, 2012
 5 TOP GAINERS  &  LOOSERS:


Unilever Pak

Rs 335.33

Island Textile

Rs (12.34)

Nestle Pakistan

Rs 104.25

J.D.W. Sugar

Rs (4.48)

Rafhan Maize

Rs 40.00

Lucky Cement

Rs (4.45)

Bata (Pak)

Rs 24.83

Hinopak Motors

Rs (2.82)

Pak Int. Con

Rs 8.00

Pak Gum & Che

Rs (2.38)

 KSE extends gains on foreign buying

ISLAMABAD: Continued buying by foreign investors and expectations of strong corporate performance by heavily-weighted companies boosted local confidence in the Karachi Stock Exchange, analysts said, leading it to close at its highest level since May 2008.
Foreign investors bought shares worth a net $19,569,904 on Friday according to the National Clearing Company of Pakistan.
The Karachi Stock Exchange (KSE) benchmark 100-share index closed 1.33 percent, or 192.36 points, higher at 14612.28 points, with a volume of 240.9 million shares. The market hit an intra-day high of 14,628.96, and posted its highest close since May 5, 2008 when the index closed at 14,673.13.
"The expectation of good corporate earnings and consistent buying by foreign investors combined to keep the market bullish," said a research analyst at the JS Global financial services company.
Among the heavyweights, Pakistan Telecommunication Company closed 6.93 percent higher at 15.42 rupees. (Reuters)


Karachi Stocks close with clipped gains
THE Karachi stock market rallied in several sessions during the week on the signing of CGT Ordinance by President Zardari on Tuesday, but the positive impact was diluted by the judicial pronouncement, which saw market close with clipped gains of 0.8 per cent or 106 points.
The KSE-100 index, however, managed to sustain the level of 14,000 points and settled on Friday at 14043 points. As investors turned cautious, regardless of better-than-expected corporate results, average daily volumes shrank 4.4 per cent over the previous week, to 257million shares. Trading value, however, rose 11 per cent to $80mn per day.
Trading activity during the week was led by three major stocks: Jahangir Siddiqui Company with turnover of 99 million shares; D. G. Khan Cement 92 million shares and Lafrage Pakistan 84 million shares.
Foreigner investors were aggressive buyers of shares worth $12.7million, showing 58 per cent increase in inflow from $12.8million the earlier week.
Analysts at KASB Securities observed that the eagerly awaited announcement of the year finally came to light as the Capital Gains Tax (CGT) relief package was promulgated via a Presidential Ordinance late on Tuesday.
While there was no surprise on salient features of the Ordinance (freezing of CGT rates at current levels, nomination of National Clearing Company as a collection agent and exemption from disclosure of source of income for retail investors, subject to certain conditions), the market failed to elicit a strong follow up response. As most of the excitement had already been priced in during the run-up since mid-Jan. Politics infused some caution as the apex court handed a symbolic punishment to Prime Minister Yousuf Raza Gilani in the NRO case, finding the executive guilty of contempt charges.
Hasan Raza, analyst at InvestCap, pointed out that apart from Presidential Order excitement, the fertilizer sector witnessed relatively better off-take numbers for the month of March as urea and DAP segments witnessed growth of 65 per cent and 294 per cent, respectively over the earlier month.
On economic front, the week witnessed the approval of $1.8billion loan by the World Bank for energy sector projects but low GDP figures of 3.2 per cent for nine months against the target of four per cent brought some negativity in the market. On corporate side, mergers and acquisitions in banking sector once again were brought into the lime light with announcement of Bank Alfalah acquiring IGI Investment Bank and Fauji Foundation getting the approval by SBP for due diligence for Askari Bank Limited.
Major gaining stocks during the week were Ghani Glass, Pakistan Tobacco Company, Unilever Pakistan Foods, Pak Suzuki Motors and Murree Brewery while KESC, Pakistan Reinsurance, EFU General Insurance, Jahangir Siddiqui & Co and Agritech Limited were major losers. The PSO outperformed the market by 0.5 per cent. It has decided to set up an oil refinery in Khyber Pakhtunkhwa with a daily capacity to refine up to 36,000 barrels of crude oil for which financial institutions has assured loans worth Rs40billion to the oil marketing company.
Results: For the broader market, the week saw some important corporate results pouring in. Those included: OGDC, PPL, LUCK, UBL, NBP and ENGRO. OGDC and PPL reported earning per share (eps) of Rs16.1 for nine-months of current fiscal year (July-March) which was up 41 per cent over the same time previous year (YoY)) and Rs24.55 (up 33 per cent YoY), respectively, owing to elevated crude oil and well head gas prices. Lucky Cement reported an eps of Rs14.49, up 89 per cent YoY on the back of high cement prices. UBL and NBP recorded an eps of Rs3.97 (up 49 per cent YoY) and Rs2.51 (up 10 per cent YoY), respectively in first quarter 2012, primarily due to lower provisioning.
Conversely, Engro announced a loss per share of Rs1.27 in 1Q2012 mainly due to loss of Engro Fertiliser owing to lower urea off-take owing to the availability of government’s subsidised imported urea.
Future outlook: Most analysts thought that the CGT relief package now in the background, the market could look for direction more on the developments on the political side. With some of the bigger giants already announcing their financial results, the corporate result season could have diluted impact on the market sentiments. But noises on the upcoming budget would get louder and leaks could impact concerned sector accordingly.
Futures counter: Market’s open interest position during the week increased by Rs632mn,up 27 per cent over the earlier week to stand at Rs3.02bn, mainly because of the rollover week with two months (Apr-May) contracts.
Futures volumes followed the same path and increase by 33 per cent over the previous week to 23 million shares. Moreover, futures spreads also jumped to 6.8 per cent from 1.9 per cent in the previous week on a consolidated basis (April-May).
The top-5 scrips at the futures counter holding 62 per cent of the total open interest were Engro, DGKC, NBP, AHCL and ATRL.

MOHAMMED SALEEM MANSOORI

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