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Wednesday, 25 July 2012

STOCK MARKET UPDATE: 26.07.2012



STOCK:

Karachi Stocks Up 40.72  Points:
KARACHI, July 26: The KSE-100 index was at
14605.42, up 40.72  points.(today 10.46 am)

July 25, 2012
5 TOP GAINERS  &  LOOSERS:

Shezan Int’l
Rs 9.82
Unilever Pak
Rs (25.00)
Millat Tractors
Rs 6.76
Hino Pak Motor
Rs (3.79)
National Foods
Rs 4.69
Exide Pak
Rs (3.70)
PSO
Rs 3.87
Indus Motor Co
Rs (2.41)
Abbott Lab
Rs 3.59
Clariant Pak
Rs (2.27)
Pakistan stocks end up; rupee weakens; o/n rates unchanged
ISLAMABAD: Pakistan’s main stock market closed up on Wednesday after the country’s Supreme Court adjourned a case that could threaten the country’s prime minister with disqualification, analysts said.
The Karachi Stock Exchange benchmark 100-share index gained 52.61 points, or 0.36 per cent, to close at 14,564.68 points on volume of 43.49 million shares.
Prime Minister Raja Pervez Ashraf has been ordered to re-open corruption cases against President Asif Ali Zardari.  Failing to do so could see him lose office, further discrediting the government.
“There was a fear that the prime minister may face the same prosecution as his predecessor for not re-opening the cases in Switzerland, which would have increased instability.
That not happening was a positive factor,” said Atif Zafar, a research analyst at the JS Global financial services company.
The Supreme Court on Wednesday adjourned proceedings until August 8.
Ashraf’s predecessor Yusuf Raza Gilani was disqualified last month by the Supreme Court for failing to re-open the cases.
In the currency market, the rupee weakened to close at 94.58/63 to the dollar, compared with 94.43/49 on Tuesday.
Overnight rates in the money market remained unchanged at 11.90 per cent.
Karchi Stocks recover 52 points
KARACHI, July 25: The Karachi stock market which was struggling to prevent a plunge, finally found its direction back to the North on Wednesday. The KSE-100 index gained 52.61 points to recover the loss of the last two days. The index closed at 14,564.68 points.
A positive news flow mainly on the judicial matters was complimented by substantially high earnings and dividend by a first major company — Fauji Fertiliser (FFC) in the current result season.
Investors thus decided to return to the trading floor with trading value of shares rising to Rs2.6 billion, about twice the earlier day’s Rs1.4 billion.
The volume in terms of number of shares traded, however stood at 57 million shares on Wednesday, same as the day before.
Investors were also encouraged by the fact that even at its day’s low, the benchmark KSE-100 index did not take a dip below 14,500 crucial level.
Investor sentiments improved also on reports that the sliding rupee and the declining foreign exchange reserves would be provided temporary relief as the US was expected to transfer $1.12 billion to the SBP next week as part payment for services provided to coalition forces.
Hasnain Asghar Ali, COO at Escorts Capital commented that better then expected earnings and payout by Fauji Fertilizer Company (FFC) provided the trigger to otherwise a range bound market.
The judicial concerns pushed back for a fortnight, a breath of fresh air entered the market, which re-activated the bulls. Market could expect various triggers ranging from healthy corporate announcements to receipt of funds withheld by US. All that could invite the sidelined participants, mainly in the frontline stocks trading at low multiples.
Besides FFC various other stocks from cement and textile sectors, kept the fund managers busy in accumulation, mainly due to availability of stocks at attractive multiples. It provided some respite to sinking value and volumes, besides offering wider trading opportunities to investors.
Ahsan Mehanti at Arif Habib Corp said that stocks closed higher amid institutional interest in oversold market. Investors took positions in shares across the board on hopes for release of payment from US.
Also strong earnings outlook, record earning announcement by FFC and renewed foreign interest in blue chip stocks played a catalyst role in bullish sentiments in stocks at KSE despite concerns for macroeconomic conditions and uncertain global markets.
Samar Iqbal, equity Dealer at Topline Securities said that better than expected FFC results and two-week time to the Government by Supreme Court helped equity values.
The KSE-30 index also gained 54.82 points to end at 12,633.12 points. Market capitalisation showed sharp rise of Rs13 billion to Rs3.715 trillion from Rs3.702 trillion on Tuesday.
Among the 252 active stocks on Wednesday, 129 ended in the plus territory; 96 in minus and 27 remained unchanged.
The biggest rise was recorded in Shezan International, up by Rs9.82 to Rs206.34, followed by Millat Tractors rising by Rs6.76 to Rs510.48. The highest losers were seen in UniLever Pak down by Rs25 to Rs7,325 and Hinopak Motors lower by Rs3.79 to Rs72.09.
Among the 10-top volume leaders, Jah Sidd Co was up by 42 paisa to Rs15.59 on 5m shares, DG Khan Cement rose 37 paisa to Rs45.31 on5m shares, Nishat Mills climbed by Rs1.25 to Rs53.45 on 4m shares and Fauji Fertiliser gained Rs1.25 to Rs118.69 on 4m shares, on better than expected second quarter results.
Askari Bank edged up by 14 paisa to Rs15.50 on 3m shares, NBP added 54 paisa to Rs45.94 on 3m shares, JS Investments increased by 43 paisa to Rs9.41 on 2m shares, Arif Habib Corp inched up five paisa to Rs34.10 on 2m shares, Lucky Cement rose Rs1.75 to Rs130.34 on 2m shares and Cherat Cement climbed by Rs1.70 to Rs36.49 on 2m shares.


Urea plants suffer Rs5.5bn loss
LAHORE, July 25: In the first half of 2012, all SNGPL-based plants, including Agritech, DH Fertilisers, Pakarab and Engro (new plant), faced a collective loss of Rs5.5 billion in terms of revenue as their total sales of urea stood at 150,000 tons as against 316, 000 tons in the first half of last year.
In a statement, the fertiliser industry stated that 52 per cent decline in terms of sale translates itself in a revenue loss of Rs5.5 billion. The total urea production by SNGPL based plants in the first half of 2011 stood at 297,000 tons which declined by 33 per cent (or 198,000 tons) till June this year.
The plants operated at 18 per cent of their capacity during these six months against 25 per cent last year. During the first half, they faced an estimated gas curtailment of 82 per cent in which Agritech and Pak Arab got gas for 63 days each while Engro Enven and DH Fertilisers got gas for 33 days in the first six months of 2012.
In the first quarter of this year, all SNGPL-based and SSGC-based plants faced a loss of revenue by 53 per cent compared with first quarter of 2011, generating Rs8.16 billion revenue in the first quarter as compared to last years’ Rs17.29 billion.
In 2012, four plants based on SNGPL as well as SSGC based FFBL lost profitability by 125 per cent and made a collective loss of Rs1.076 billion whereas the same plants had made profit of Rs4.3 billion in the first quarter of 2011.
The SNGPL-based plants are facing crisis as 82 per cent gas curtailment was never witnessed before 2012.
Despite making an investment of $2.3 billion in the last four years on new production capacity, making Pakistan world’s seventh largest urea manufacturer, there is an idle urea capacity of over three million tons.
Fertiliser sector officials said that if same gas curtailment continues during the remaining five months of 2012, the SNGPL-based fertiliser plants would be forced to shut down permanently.


Nishat Mills pulls out of ICI deal
KARACHI, July 25: Nishat Mills Limited withdrew its Public Announcement of Intention (PAoI) for the proposed acquisition of 75.81 per cent shares in ICI Pakistan Limited.
The company announced on Wednesday that it was withdrawing the PAoI “as the target entity did not provide much synergies to
its existing business lines.” Nishat Mills had made the PAoI regarding its proposed acquisition of stake in ICI on June 11, 2012.

The company said it was releasing the withdrawal notice in accordance with Regulation 17 of Listed Companies (substantial acquisition of voting shares and Takeovers) Regulations, 2008.
FFC investment: The Fauji Fertiliser Company (FFC), which declared the financial results and payout for the 1HFY12 on Wednesday, also announced that it was backing out of its acquisition of shares in Agritech.
The company said: “In view of the gas scenario and company’s financial commitments, the FFC board of directors has decided not to pursue 9.99 per cent equity stake in Agritech Limited as conveyed to the stocks exchanges vide the company’s letter dated April 19.”
MOHAMMED SALEEM MANSOORI

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