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Thursday, 28 June 2012


KARACHI STOCK EXCHANGE-DAILY MARKET TREND: STOCK MARKET UPDATE:29.06.2012: STOCK: Karachi Stocks Up 8.57 Points: KARACHI, June 28: At the close of trading, the KSE-100 index was at 13807.69, up 8.57 poin...



Karachi Stocks Up 8.57 Points:
KARACHI, June 28: At the close of trading, the KSE-100 index was at 13807.69, up 8.57 points.
June 27, 2012

Rafhan Maize
Rs 94.34
UniLever Pak
Rs (280.06)
Siemens Pakistan
Rs 35.91
Philip Morris
Rs (9.25)
Bata Pak
Rs 19.92
Pak Suzuki Motor
Rs (3.59)
Nestle Pak
Rs 15.32
Clariant Pak
Rs (3.00)
Colgate Palmolive
Rs 14.49
Jubilee Life
Rs (2.97)

Karachi Stocks turn flat after overnight rally
KARACHI, June 28: Stocks ended flat on Thursday, with the KSE-100 index posting an insignificant gain of 6.30 points to close at 13,805.42 points.
Most traders sat idle all through the day as the volume again dipped to 63 million shares of the trading value of Rs2.304 billion, compared to 94 million shares valued at Rs2.816 billion that changed hands a day ago.
Market capitalisation added Rs2 billion with the value of all shares traded at the exchange at Rs3.520 trillion, against Rs3.518 trillion the previous day.
Foreign investors sold net $0.80 worth equity. Traders said that as it marked the second last session of the current financial year, off-market transactions were heavy as various market participants strived to balance their portfolio so as to paint a pretty picture on the balance sheet at June 30.
Also, retail and institutional investors remained on the sidelines in the absence of triggers. No concrete news on the progress of Pak-US negotiations to the end of blockade of land route for Nato supplies through Pakistan was a depressant.
Much of the euphoria over the quick solution to the issue evaporated and investors decided to wait and watch. Volatility was however seen as there was a gap of around 100 points between the day’s low at 13,785.29 points and high at 13,880.58 points.
Samar Iqbal, equity dealer at Topline Securities, acknowledged that the share prices showed mixed performance on Thursday as most investors remained on the sidelines in the absence of any major trigger.
Bearish trend in the global market also forced investors to remain cautious. Selected activity was seen in fertiliser, cement and banking stocks in anticipation of better June quarter ending results.
Hasnain Asghar Ali said that low volumes yet high volatility was witnessed throughout the session. Stocks on Oil and gas Exploration & Production (E&P) came up for selling from the local circuits mainly on stock swapping as the local portfolios
were seen anxious for a balanced portfolio to mark the fiscal year end.

The strategy was prominent even in the fertiliser stocks, where shares reckoned to be safe were accumulated by long-term investors. The upcoming session on Friday would mark the last of the current fiscal and the week, which could see high degree of volatility as the stocks displaying consistency in earnings and payouts are likely to attract liquidity.
The KSE-30 index shed 1.56 points to close at 11,932.21 points. Among the 339 active stocks on Thursday, 127 finished in plus columns while 113 in the minus with 99 remaining unchanged.
Major gainers for the day were Rafhan Maize Products, up by Rs94.34 to Rs3,144.34 and Siemens Pakistan higher by Rs35.91 to Rs763.86.
On the losing side, UniLever Pak slipped by Rs280.06 to Rs7,018.19, followed by Philip Morris Pak down Rs9.25 to Rs175.76.
All the ten volume leaders were either up or down by less than a rupee, which pointed to churning, possibly by retail investors.
BankIslami up by 95 paisa to Rs10.30 on 6m shares, Soneri Bank down 7 paisa to Rs7.49 on 5m shares, Summit Bank slid 2 paisa to Rs3.20 on 5m shares, PTCL was lower by 6 paisa to Rs13.92 on 4m shares, D.G. Khan Cement added 18 paisa to
Rs40.11 on 4m shares, Fauji Fertiliser edged higher by 9 paisa to Rs111.94 on 3m shares.

Fauji Bin Qasim showing increase by one paisa to Rs40.93 on 2m shares, Engro Foods minus 9 paisa to Rs65.46 on 2m shares, Engro Corporation lightly up by 2 paisa to Rs103.53 on 2m shares and Jah Sidd Co, down by a paisa to Rs12.64 on 2m shares.

Wednesday, 27 June 2012


KARACHI STOCK EXCHANGE-DAILY MARKET TREND: STOCK MARKET UPDATE:28.06.2012: STOCK: Karachi Stocks Up 168.95 Points: KARACHI, June 27: At the close  of trading, the KSE-100 index was at 13824.99, up 168....



Karachi Stocks Up 168.95 Points:

KARACHI, June 27: At the close  of trading, the KSE-100 index was at 13824.99, up 168.95 points.
June 27, 2012

Rafhan Maize
Rs 117.33
Unilever Food
Rs (75.00)
Nestle Pak
Rs 66.71
Rs (51.75)
Bata Pak
Rs 32.43
Fazal Textile
Rs (10.38)
Attock Petroleum
Rs 5.88
Sapphire Fiber
Rs (6.44)
Colgate Palmolive
Rs 4.48
Indus Motor Co
Rs (5.62)

Karachi Stocks stage spectacular rally of 143 points
KARACHI, June 27: Shares rebounded on the stock market on Wednesday with the KSE-100 index rising by 143.08 points or 1.05 per cent and closed at 13,799.12 points.
Investors seemed to be excited over the visit of General John Allen, top US Commander stationed in Afghanistan later in the day. He was expected to hold talks with Pakistan’s Chief of Army Staff General Pervaiz Ashfaq Kayani to discuss the restoration of Nato supply routes, that have been closed since November 2011, when Nato air strike killed 24 Pakistani soldiers.
Talks to end the seven-month blockade have reached stalemate over Pakistani demands for a formal apology and US insistence on letting the subject drop, which has soured Pakistan’s relations with the US.
Samar Iqbal, Equity Dealer at Topline Securities said that the market witnessed across the board buying amid hopes that Nato supply issue could be resolved in the meeting between Nato commander and Pakistani officials.
Volumes were higher than the last many days, but remained lower than the average of a good day, as investors preferred to adopt wait and see strategy ahead of June closing.
Hasnain Asghar Ali, a market commentator, stated that the positive activity on Wednesday was mainly attributable to June-end portfolio dressing, which kept the benchmark on the gaining ground, with E&P sector being the major contributor. It was well supported by wide-spread frontline stocks.
Relatively stable political scene kept the accumulators in search of stocks likely to perform in coming quarters and mainly those which were thought to announce healthy payouts, thus inviting marginally higher volumes to support the gains.
Strength in remaining sessions of the running fiscal year would provide stock and sector swapping opportunities, with surge of turnover expected due to various steps incorporated in budget for revival of capital markets, the analysts reckoned.
Ahsan Mehanti at Arif Habib Corp observed that the Pakistan stocks closed higher on investor speculations ahead of year-end closing and expectations of improvement in Pak-US ties on possible resumption of Nato supply routes following diplomatic meetings.
Institutional support in blue-chip stocks across the board played a catalyst role in bullish sentiments despite concerns for security situation in the city and uncertainty in global stocks and commodities on prevailing eurozone debt crises.
The KSE-30 index gained 154.10 points to 11,933.77 points and a sum of Rs33 billion was added to market capitalisation, which rose to Rs3.518 trillion, from Rs3.485 trillion. Volume increased to Rs94 million shares on Wednesday, from 58 million shares traded the day before.
Among the 365 stocks that came up for trading on Wednesday, 164 were gainers, 123 losers and 78 remained unchanged.
The highest increase was noted in Rafhan Maize Product, which shot up by Rs117.33 to Rs3,050, followed by Nestle Pakistan up by Rs66.71 to Rs4,068.92. The laggards were led by UniLever Food, down by Rs75 to Rs2,750 and UniLever Pak losing Rs51.75 to Rs7,298.25.
On the active list, BankIslami Pakistan was in the forefront with 10m shares traded up by 13 paisa to Rs9.35. Bank Alfalah followed with an increase of 37 paisa to Rs17.67 on 7m shares, PTCL edged higher by 13 paisa to Rs13.98 on 7m shares and Azgard Nine rose by 73 paisa to Rs6.80 on 7m shares.
Jah Sidd Co was up by 6 paisa to Rs12.65 on 6m shares, Summit Bank slipped 13 paisa to Rs3.22 on 4m shares, D.G.Khan Cement rose by 76 paisa to Rs39.93 on 4m shares, Fauji Fertilizer jumped by Rs1.34 to Rs111.85 on 4m shares, Fatima Fertiliser closed higher by 33 paisa to Rs24.52 on 3m shares and National Bank of Pakistan gained 33 paisa to Rs43.99 on 2m shares.

1) KESC raises Rs5.5bn: KARACHI, June 27: The Karachi Stock Exchange has received Rs5.466 billion, against the right issue of shares that was approved by the Board on February 20.
Statutory auditors of the company confirmed on Wednesday that after verification of bank statements and books and records of KESC, the following were received by the company against the right issue: From KES Limited (holding company) Rs5.346 billion (72.70 per cent of the offer); from minority shareholders (excluding unsubscribed portion Rs19 million), making a total of Rs5.365 billion against the offer of shares valued at Rs5.466 billion. Therefore, the unsubscribed portion of minority right shares in the sum of Rs102 million have been subscribed by the KES Power Limited.
The statutory auditors of KESC further confirmed that as per the un-audited financial statements of the company as at half year ended Dec 31, 2011, the company’s paid-up capital (ordinary shares) stood at Rs79.715 billion.
“This paid-up capital is net of transaction cost of Rs204 million and represent 23 billion shares of Rs3.50 each,” auditors said, adding that it did not include the subscription money of Rs5.466 billion received against right issue of shares.
Based on the subscription amounts for the right issue of shares, the enhanced paid-up capital of the company would be Rs85.127 billion. This paid-up capital will be net of transaction cost of Rs257 million. The auditors stated: “The above is as per the decision of the board of directors meeting held on Feb 20, whereby a 9.20 per cent right issue was approved. This would result in total of 24.396 billion ordinary shares of Rs3.50 each (excluding the government shares in the current right issue). The auditors concluded: “Further we have been given to understand by the management of the company that KESC is in process of issuing right shares, subject to completion of necessary regulatory formalities.”
At another place, it has been mentioned that a letter of undertaking (has been received) from the government to subscribe for its portion of the right shares (25.66 per cent).
2)Aisha Steel IPO:
Aisha Steel Mills Ltd (ASML), is scheduled to float 10 million shares on July 3 and 4.

The company is stated to be the largest CRC Mill in the country, which would cater to over 50 per cent of the annual market demand.
A press release by the company stated that the company had conducted site visit of institutional and high net worth individuals on Tuesday.
ASML is a joint venture between Arif Habib Group, Metal One Corporation; Japan (a subsidiary of Mitsubishi Group) and UMC Japan. The company was incorporated in 2005 and is a state of the art cold rolled coil (CRC) steel mill in Pakistan based on Japanese technology.
Project cost amounts to Rs9.38 billion which has been financed by debt equity ratio of 65:35. All the plant and machinery has been installed and trial production has already commenced, the company stated.
Aisha Steel is now in the process of being listed through its Offer for Sale Transaction (OFS) by offering 10 million shares to the General Public at par value of Rs10 per share. The Pre-IPO portion amounting to Rs234 million of this transaction achieved financial close in April 2012 and was said to have received good response from the financial sector.


Tuesday, 26 June 2012


KARACHI STOCK EXCHANGE-DAILY MARKET TREND: STOCK MARKET UPDATE:27.06.2012: STOCK: Karachi Stocks Up 12.59 Points: KARACHI, June 26: At close of trading, the KSE-100 index was at 13654.79, up 12.59 points...



Karachi Stocks Up 12.59 Points:
KARACHI, June 26: At close of trading, the KSE-100 index was at 13654.79, up 12.59 points.
June 26, 2012

Rs 111.00
Exide Pak
Rs (9.30)
Rafhan Maize
Rs 71.48
Rs (7.92)
Colgate Palmolive
Rs 12.94
Rs (3.95)
Nestle Pak
Rs 7.20
Biafo Inds
Rs (2.45)
Philip Morris
Rs 5.92
Service Inds
Rs (2.05)

Karachi Stocks post modest gain of 14 points
KARACHI, June 26: The stock market saw a tough tussle between the bulls and the bears as the KSE-100 index oscillated between the high of 13,707.21 and low of 13,587.97 on Tuesday.
The index finally settled at 13,656.04 points posting a minor gain of 13.84 points amid low activity as most of the retail investors opted to keep to the sidelines.
The market partially recovered some of the losses suffered on Monday mainly on concerns over the global financial crisis and a dip in the international oil, stocks and commodity prices.
The worries on those counts still lingered on Tuesday, but the investors seemed to look for value stocks. Foreign investors sold equity worth $1.92 million. Among local participants, companies were major sellers of stocks valued at $10.01 million.
However, whatever was offloaded by the corporates was quickly picked up by the banks, who bought shares of $9.68 million. Most market participants thought that the market could crawl along until the year-end, after which new buying may emerge.
Samar Iqbal at Topline Securities commented that the local bourse showed a mixed trend with the volume remaining low. However, some interest was seen in oil and cement stocks which were among the top 10 stocks with comparatively higher volumes.
The analyst reckoned that the market was waiting for any triggers on the US-Pak relationship and the movement of the rupee.
Ahsan Mehanti of Arif Habib Corp also voiced a similar opinion. “There are hopes for improvement in Pak-US ties on progress over the opening up of Nato supply routes.”
The institutional support in blue-chip stocks across the board ahead of year-end close played a catalyst role in bullish sentiments despite concerns for security situation in the city and uncertainty in global stocks and commodities on deepening of eurozone debt crisis, he added.
The KSE-30 index gained 4.86 points to close at 11,779.67 points, a slight improvement from Monday’s 11,774.81 points. The volume rose from 56.8 million shares to 57.9 million shares. However, it fell short of Friday’s trading in 84.9 million shares.
Trading value increased to Rs2.0 billion from Rs1.9 billion on the last trading session. Market capitalisation increased by Rs2 billion at Rs3.484 trillion.
Among the 353 active stocks on Tuesday, 105 were gainers, while 163 ended in minus columns. Another 85 shares remained unchanged.
The biggest gainer was UniLever Food which rose by Rs111.00 at Rs2825.00 followed by Rafhan Maize up by Rs71.48 at Rs2,932.67.
Exide Battery turned out to be the biggest loser closing at Rs178.97 after a loss of Rs9.30. Sanofi Aventis fell by Rs7.92 at Rs173.07.
On the active list, D.G.K Cement with 7m shares lost one paisa at Rs39.17. Hub Power Co lost three paisa at 41.51 on 4m shares. Pak Reinsurance shed 9 paisa at Rs17.65 on 4m shares.
Bank Alfalah gained 29 paisa at Rs17.30 on 3m shares, Jah Sidd Co lost 39 paisa at Rs12.59 on three shares, Engro Foods gained seven paisa at Rs65.18 on 2m shares, Lotte Pak lost 16 paisa at Rs7.10 on 2m shares.
Fauji Cement added 15 paisa at Rs5.69 on 2m shares. Lucky Cement gained 42 paisa at Rs111.63 on 1m shares and Fauji Fertiliser gained 25 paisa at Rs40.40 on 1m shares.

1) CCP takes fertilizer producers to task: KARACHI: Competition Commission of Pakistan (CCP) enquiry into price of ‘locally manufactured urea fertilizer’ in the country has come up with the conclusion that the hike of 86 per cent during the period from Dec 2010 to Dec 2011, from Rs850 per bag to Rs1,580 per bag “seems to be unjustified and unreasonable.”
It said that the increase was unprecedented and highest during last 20 years.
The commission has issued show-cause notices to fertilizer producers and summoned a representative on July 12 to explain why an appropriate order may not be passed and a penalty for violation be not imposed under Sec 38 of the Competition Act.
In reply to queries by Dawn, the chairperson CCP, Ms Rahat Kaunain Hassan, argued that such actions do make a difference.
Her attention was drawn to similar steps earlier taken against cement cartels of which nothing tangible seemed to have emerged.
Ms Hassan stated that cement makers were a powerful lobby. Also that they had obtained stay orders from the courts.
She said that though errant groups, such as cement makers, may have escaped paying penalty, they and others against whom CCP had taken actions would sooner or later have to face the music.
Also, if a third party, consumers or farmers, were to seek remedy from courts against errant players, they could be facilitated by the CCP actions and enquiry reports.
For CCP, the chairperson said it was one institution that was ‘documenting the economy’ despite financial constraints.
For four years, the CCP budget had remained unchanged at Rs600 million with government grant at Rs200 million, coming in trickle. The results of CCP actions, she said, were visible to relevant persons even if they were not clear to all. She said that one positive outcome of CCP censor was that compliance with regulations had increased.
About remedies, the CCP chairperson said that one of them could be directing any one organisation that was getting too big to dominate, to restructure or divest part of its holdings. And she stressed: “It is vital that the matters of economic importance be prioritised in judicial reviews, in order to transfer the benefits to general public.”
And now back to the enquiry report on fertilizer units, released by the CCP on Tuesday (dated Feb 25). The report stated that all the factors were taken into account, such as gas curtailment, input costs, subsidies, profitability analysis and government policies, after which it was thought that the undertaking “appeared to have indulged in the practice of unreasonable price increase.”
The report observed: “Market of locally manufactured urea in Pakistan is a ‘captive market’ and all the undertakings in this relevant market have the ability to behave to an appreciable extent independent of its customers, consumers and competitors, irrespective of their market share.”
In a notice it said: “Simultaneous and coherent increases in prices of urea (same rate at same time) in the absence of an objective justification by the industry players indicates common policy/economic linkages between urea producers and therefore, the fertilizer market also appears to satisfy the conditions for existence of ‘collective dominance’.
The commission pointed out that the industry composition was of seven producers out of which four producers linked by two groups held 84 per cent of the total current capacity of the industry.
The break-up was: Fauji Fertilizer 32.7 per cent; Fauji Bin Qasim 8.8 per cent; Engro 36.4 per cent and Dawood Hercules 7.1 per cent.
The balance of 16 per cent was divided into three producers namely, Fatima, Pak Arab and Agritec.
“Collective dominance is also there as two groups, Fauji and Engro, hold over 84 per cent of total installed capacity of urea fertilizer industry,” the CCP report stated.
The commission argued against a dozen excuses for raise in prices, including the main issue of gas shortages. The CCP stated that gas curtailment impacted only 27 per cent of the total capacity. However, the producers representing 73 per cent also increased prices by the same amount – indicating some formal or informal understanding for such action in a coherent fashion.
“Thus, there was no justification for unprecedented price hike. Gas curtailment hit only Pak Arab, Agriteck, Dawood Hercules and Engro new plant.
Profitability increased to unreasonable proportion in spite of gas curtailment,” summed up the CCP enquiry report.
Contract for urea import: KARACHI, June 26: The Trading Corporation of Pakistan (TCP) on Tuesday has awarded contract for import of 100,000 tons of urea to the lowest bidder, M/s Transmmonia A G Switzerland, which quoted price at Rs411.77 per ton.
The TCP tender for import of urea was floated on June 21, 2012 and in all 15 bidders participated and quoted price, ranging from $411.77 to $488 per ton (c&f).
Official sources said that all the bids were found responsive in terms of prescribed evaluation criteria, but M/s Transammonia A G Switzerland offered the lowest price of $411.77 per ton c&f for a quantity of 100,000 tons.
The corporation is importing urea in pursuance of the ECC directives to meet the supply and demand gap of the urea fertilizer during Kharif season.
With the award of this tender, the total quantity imported by the TCP would come to 200,000 tons as against the total target of 300,000 tons, says a press release.