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Wednesday, 4 July 2012



Karachi Stocks Plus 14.86 Points:
KARACHI, July05: The KSE-100 index was at 14192.96, Up 14.86 points.(today 11.42 am)

July 4, 2012

Unilever Pak
Rs 71.16
Rafhan Maize
Rs (77.34)
Nestle Pak
Rs 14.28
Colgate Palmolive
Rs (30.00)
Indus Motor Co
Rs 12.70
Bata Pak
Rs (23.30)
Linde Pak
Rs 5.69
Philip Morris
Rs (7.91)
Agriautos Indus
Rs 4.05
National Foods
Rs (4.74)

Karachi Stock:Profit-taking halts upward drive
KARACHI, July 4: The stock market took a breather after the steep climb of 3 per cent in the first two days of the week. On Wednesday the KSE-100 index pulled back by 22.69 points of 0.16 per cent to close at 14,178.10 points.
Investors decided to book profit after it was clear that the US-Pak relationship could be on the mend. A stock broker said that it was a classic case of “buy on rumour, sell on news”.
The morning papers conveyed the positive news of re-opening of Ground Lines of Communication (GLOC) for Nato supplies via Pakistan to Afghanistan. The development followed the long awaited apology for the Nov 26, 2011 incident in which 24 Pakistani soldiers were killed by US military aircraft.
In retaliation, Pakistan blocked routes to Nato trucks that were taking necessary supplies for coalition forces in Afghanistan. The apology finally was conveyed to Pakistan by US Secretary of State Hillary Clinton.
Nauman Khan at Topline Securities said that the development was likely to pave way for the reimbursement of Coalition Support Funds (CSF) and other foreign flows, providing some respite to country’s fragile external account and currency outlook in financial year 2013.
Ahsan Mehanti at Arif Habib Corp stated that the Pakistan stocks closed lower amid profit-taking ahead of corporate earning announcements due next week. Institutional support was also witnessed.
Faisal Shaji at Standard Capital Securities opined that the thaw in Pak-US relations could bode well for the country. This ostensibly means that now Pak-US relations should again be on-course for Pakistan to go to IMF for balance of payment and exchange rate support programme.
The foreign exchange reserves, ease in current account deficit, improvement in exports particularly textile goods were thought to benefit.
“In the longer term, relations with US would also define opportunity for Pakistan to play its role in development of war torn Afghanistan where India has taken the lead” said Shaji, adding that the Indian firms were getting numerous contracts such as in telecom, road building, education, steel and mining but Pakistan lagged behind on account of host of reasons.
Hasnain Asghar Ali, a market watcher said that a highly volatile session on Wednesday ended without any major adjustment. Re-opening of Nato supply routes and commitments by US regarding dispatch of withheld payments, invited renewed buying.
With major issues on international front resolved, the momentum was expected to continue, suggesting accumulation in frontline stocks, for both short term and placements. Yet various issues on financial and economic horizon could continue to haunt corporate profitability in some sectors. The KSE-30 index gained 1.17 points to end at 12,303.77 points. Turnover stood reduced to 101 million shares, from 119 million shares traded a day ago. Trading value also declined to Rs4.453 billion, from Rs4.566 billion. Market capitalisation slipped by Rs6 billion to Rs3.610 trillion. Among the 360 stocks that came up for trading, 133 ended in the plus column, 131 in the minus, while 96 remained unchanged.
On the active list, D.G. Khan Cement posted the biggest volume of 11m shares, down 2 paisa to Rs41.06. Next in line was PTCL with turnover of 8m shares, down 8 paisa to Rs14.52. Jah Sidd Co decreased by 22 paisa to Rs13.33 on 5m shares, Fauji Fertiliser gained Rs1.26 to end at Rs115.54 on 5m shares, Nishat Mills was the top gainer on the active list, up by Rs1.83 to Rs51.13 on 4m shares and National Bank of Pakistan shed 27 paisa to Rs44.87 on 4m shares.Bank Alfalah declined 20 paisa to Rs17.42 on 4m shares, Lucky Cement slid 2 paisa to Rs120.19 on 4m shares, United Bank eased by 57 paisa to Rs80 on 3m shares and Lafarge Pakistan shed 17 paisa to Rs4.56 on 3m shares.

Company news:

1) Cement industry posts positive results: LAHORE, July 4: The cement industry’s dispatches for the year 2011-12 were the highest ever in the history of the country, a statement issued by the All Pakistan Cement Manufacturers Association said.
Local cement dispatches increased to a record level of 23.947 million tons, registering an increase of 8.84 per cent.
However, increase in input costs with electricity, diesel, paper sack and gypsum prices registering an increase, contributed to some pressure along with rupee devaluation.
Meanwhile, exports declined by 9.12 per cent to 8.568 million tons, with 2011-12 being the third straight year when the cement exports declined.“The cement sector added three million tons additional production capacity in the year 2011-12 as its total production capacity
increased by 7.23 per cent to 44.217 million tons from 42.235 million tons in 2010-11,” the statement read.

However, for the year 2011-12 its capacity utilisation remained under pressure due to sluggish export demand, non-revival of construction sector in the country, lack of investment in housing sector and government inability to initiate mega projects.
From the peak level of 10.752 million tons of 2008-09, the export decreased to 8.568 million tons in the year 2011-2012, showing a decline of 20.4 per cent.
The hype created on trade with India has so far not been materialised and export in that market was only 0.605 million tons in 2011-12 which has been well below the expectation of the cement sector, the statement added.


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