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Monday, 28 May 2012

STOCK MARKET UPDATE: 29.05.2012


STOCK:


Karachi Stocks Up 133.91 Points:
KARACHI, May 29: The KSE-100 index was at 14165.42, up 133.91 points. (today 11.27am)

May 29, 2012
5 TOP GAINERS  &  LOOSERS:

Mithchells Fruit
Rs 13.65
Rafhan Maize
Rs (139.12)
National Refinery
Rs 10.84
Uni Lever Pak Ltd
Rs (133.75)
National Foods
Rs 8.96
Nestle Pakistan
Rs (82.32)
Attock Petroleum
Rs 8.18
Dreamworld
Rs (10.00)
Philip Morris
Rs 7.66
Pak Services
Rs (7.80)

Bulls stage comeback, index gains 106 points
KARACHI, May 28: Similar to the trend seen the previous week, bulls took control of the market on the first trading session on Monday, with the KSE-100 index galloping to cross once again over the psychological barrier of 14,000 points.
The index gained 106.45 points during the day’s trading, which most market experts attributed to a surge of interest of institutions and foreign investors in the oil and gas, cement and the banking sector.The share prices took to the north after the opening and never once looked back over the opening level of 13,925.06 points.
Foreign buying on Monday stood at net $5.09 million, which coupled with the banks that purchased equity in the net sum of $5.31 million went on to spur prices all across the ready board.
This was evident in the number of price gaining stocks, which stood at 191 during the day. The figure was almost twice the 108 that lost value. Another 70 scrips remained unchanged among 369 active stocks.
Several brokers said that the savvy investors both local and foreign were picking up value stocks on all counters, ahead of federal budget on June 1. Specific to the market, many thought that the major demands of making CGT Ordinance as part of the Finance Bill, the decrease in corporate tax rate and making it mandatory for corporates to distribute 40 per cent of the year’s earnings in dividend might be met.But few expected the government to succumb to all demands, given hardly any fiscal space on account of weak economic fundamentals, widening current account deficit and excessive government borrowing from the
central bank.

Ahsan Mehanti at Arif Habib Corp stated that the Pakistan stocks closed bullish on Monday on account of investor speculations in an oversold market ahead of federal budget announcement due this week.
Renewed foreign interest in oil and gas exploration and production and banking stocks, stability in the rupee fall, expectations of an early resolution of Nato supply issue leading to release of US military aid to Pakistan, recovery in global stocks and commodities played a catalyst role in bullish sentiments despite concerns over rising political uncertainty.
The KSE-30 index gained 148.93 points to 12,239.13 points, from 12,090.20 points and market capitalisation increased by Rs28 billion to Rs3.591 billion, from Rs3.563 billion last Friday.
The volume of business improved 10 per cent to 181 million shares on Monday, from 165 million shares traded the previous session. Trading value also rose to Rs5,725 billion, from Rs5,354 billion.
The rising stocks were led by Mitchell’s Fruit Farms, up by Rs13.65 to Rs286.76, followed by National Refinery higher by Rs10.84 to Rs250.33. On the downhill was the Rafhan Maize sliding by Rs139.12 to Rs2,685.88 and UniLever Pak tumbling down by Rs133.75 to Rs7,100.13.
On the active list, D.G. Khan Cement gained Rs1.13 to Rs43.90 on 24m shares. JS Bank was distant follower with trading in 13m shares, up by 40 paisa to Rs6.24.
BankIslami Pakistan continued to amass value rising 41 paisa to Rs11.61 on 12m shares, TRG Pakistan added 20 paisa to Rs4.47 on 10m shares, National Bank of Pakistan jumped by Rs2.13 to Rs47.26 on 8m shares, Fauji Cement edged higher by 3 paisa to Rs6.38 on 8m shares, PTCL shed 4 paisa to Rs15.83 on 6m shares, Engro Foods shot higher by Rs3.25 to Rs68.62 on 5m shares and Lafarge Pakistan added 12 paisa to Rs4.89 on 5m shares.

Karachi stocks rise; rupee hits fresh low against dollar
ISLAMABAD: The Karachi Stock Exchange closed up on Monday, with buying in the cement and fertiliser sectors helping the market close above 14,000 points, dealers said.
The KSE’s benchmark 100-share index ended 0.76 per cent, or 106.45 points, higher at 14,031.51 points on volume of 119.69 million shares, compared with Friday’s close of 13,925.06.
“Led by institutional buying in cement and fertiliser stocks, the market rallied to close above the 14,000-points mark,” said Samar Iqbal, a dealer at Topline Securities.
Fatima Fertilizer closed 2.94 per cent higher at 24.85 Pakistani rupees, Fauji Fertilizer ended 2.15 per cent higher at 112.5 rupees, and Fauji Fertilizer Bin Qasim rose 3.95 per cent to 41.6 rupees.
In the cement sector, D.G. Khan Cement closed 2.29 per cent higher at 43.75 rupees, and Attock Cement  ended 1.88 per cent higher at 79.5 rupees.
The Pakistani rupee extended its recent sequence of marking record lows versus the US dollar, closing on Monday at  92.14/19 to the dollar, compared with 91.70/75 on Friday.
“The pressure we saw last week on the rupee because of increased import payments was sustained on Monday, but we expect the pressure to reduce tomorrow,” said currency trader Abdul Basit.
Overnight rates in the money market ended marginally lower at 10.75 per cent, down from Friday’s close of 11 per cent, as a result of a slight increase in liquidity in the interbank market.
Fertilizer sales down 38pc
KARACHI, May 28: As the imported product quickly covered half the ground in April, the local urea (the major fertilizer) manufacturers, sitting on heaps of inventory, have started to feel the pinch.
The numbers released by the National Fertilizer Development Corporation (NFDC) on Monday reveal that farmers may be reaping the benefits of lower price of the essential fertilizer due to huge imports, but the local industry is fast losing its share in highly competitive market.
Total urea off-take fell sharply by 37 per cent to 308,000 tons in the month of April 2012.
The break-up shows that local manufacturers sold 151, 000 tons while sales of imported urea stood at 157,000 tons. This marks a turnaround from local sales at 404,000 tons and imported sales at 82,000 tons in the same month last year.
Dealers agreed that the decline in local branded urea sales was due to subsidized imported urea available in the market.
Inventory of 168,000 tons of imported urea was held by the government while local manufacturers were locked with unsold inventory of 768,000 tons by the end of April 2012.
Over the first four months period (Jan-April 2012), local branded urea sales was 644,000 tons, which marked a huge fall of 57 per cent over the same time the earlier year, primarily due to sales of subsidized imported urea.
The cumulative sales of urea in four months stood at 1.3 million tons, representing drop of 22 per cent over the comparable period of previous year.
Analyst Farhan Mahmood at Topline Securities said that lower off- take could be due to reduced demand over delay in Kharif sowing as unavailability of seeds was an issue and second, because of subdued smuggling this year to border countries (especially Afgh-anistan) because of steep rise in local fertilizer prices amid gas curtailment, cess and sales tax which reduced benefit of price difference. Previously, ample quantity of urea was also smuggled due to heavy subsidies in Pakistan.
Naeem Javid at AKD Securities pointed out that though April 2011 sales of urea was subdued, but sequentially it was 15 per cent higher over the earlier month.
The end of April inventory, which figured at 936,000 tons loomed at the highest level in recent past and was enough to take care of two months’ demand.
The inventory in godowns included 160,000 tons of imported urea. Analyst Naeem stated that the continued decline in off-take over the previous year, poses concern.
“We attribute this to delay in cotton sowing due to non-availability of water and dealers’ hesitancy in a volatile price environment,” he said. Regardless of reduction in per bag of urea by Rs145 by the local producers, in order to sell more, the local manufacturers as yet appeared unable to get satisfactory inventory tur-nover. As regards DAP (another major fertilizer), total sales in April 2012 was shown at 10 per cent higher than last year at 60,000 tons, which analyst Farid Aliani credited to stabilizing local prices.
The cumulative sales during Jan-April 2012 stood at 147,000 tons, down 32 per cent over the comparable four months period last year.

MOHAMMED SALEEM MANSOORI

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