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 168.95 points.

June 27, 2012

5 TOP GAINERS  &  LOOSERS:

Rafhan Maize	Rs 117.33	Unilever Food	Rs (75.00)
Nestle Pak	Rs 66.71	UniLever	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.

ANNOUCEMENTS/COMPANY NEWS:

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.


MOHAMMED SALEEM MANSOORI