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Tuesday, 24 July 2012

STOCK MARKET UPDATE:25.07.2012

STOCK:

Karachi Stocks Down 10.02 Points:
KARACHI, July 24: At the close of trading, the KSE-100 index was at 14517.23, down 10.02 points.

July 24, 2012
5 TOP GAINERS  &  LOOSERS:

Bata Pak
Rs 31.17
Unilever Food
Rs (10.00)
Clariant Pak
Rs 2.90
National Foods
Rs (6.22)
Indus Motor Co
Rs 2.54
Attock Petroleum
Rs (4.56)
Burshane LPG
Rs 2.01
Hino Pak Motor
Rs (3.99)
Biafo Ind
Rs 1.50
Abbot Laboratories
Rs (3.72)
Karachi Stock market undergoes mild correction
KARACHI, July 24: The Karachi stock market remained listless for the second day on Tuesday, with the KSE-100 index down 15.18 points to settle at 14,512.07 points.
The index had, however, held on to the 14,500 level. The turnover, though showing improvement both in respect of volume and value over the previous day, many market participants suggested that the index was undergoing technical correction.
Volume of shares traded on Tuesday stood at 57 million, which was almost twice the Monday volume. Trading value rose by 54 per cent to Rs1.443 billion on Tuesday, from Rs935 million a day ago.
“The small loss in index on low volumes for the last two days suggests consolidation,” said an equity dealer. The thought was further fortified by low volatility, a mere 60-point gap between the high and low of the index during the day.
The trigger for the bulls was the handsome earnings and payout by upcoming declarations by major companies as the results season progresses.
Samar Iqbal, equity dealer at Topline Securities said that the market once again posted lacklustre behaviour on Tuesday in the absence of any positive news.
Volumes remained low and shares price moved in a narrow band ahead of the Supreme Court hearing on Wednesday.
Later in the day, some reports suggested that the government had submitted its reply to the Supreme Court in the NRO implementation
case, in which it stated that the prime minister cannot write a letter to Swiss authorities. That set the stage for another round of low volumes amid uncertainty at the local bourse.

The news flow was generally mundane. The Securities and Exchange Commission of Pakistan (SECP) approved various documents submitted by the stock exchanges under the Stock Exchanges (Corporatisation, Demutualisation and Integration) Act, 2012.
Moreover, the government decided in principle to restrict all public sector exploration and development companies to sell LPG, extracted from oil and gas fields, only to Sui gas companies so as to stabilise LPG prices.
Ahsan Mehanti at Arif Habib Corporation stated that the activity at the bourse remained dull despite strong corporate earnings outlook, in line with global stocks and commodities, which sank following Moody’s cut on Germany’s outlook of ‘AAA’ credit rating from ‘stable’ to ‘negative’.
Security unrest in the city and concerns for rising circular debt in Pakistan energy sector were other depressants.
Hasnain Asghar Ali COO at Escorts Capital said that the roll over participants had to make discounts deeper to tempt short term support for a smooth roll-over.
It resulted in forcing the benchmark to continue the spell of technical adjustment, mainly due to extreme squeeze in turnover, a regular happening during early sessions of the month of Ramazan.
He contended that despite murky situation on the financial and political fronts, low running multiples proved to be an attraction for the local participants.
A sum of Rs5 billion decreased from the stock market capitalisation, which stood at Rs3.702 trillion, from Rs3.707 trillion. KSE-30 index shed 25.86 points to 12,578.30 points. Among the 231 active stocks, 128 were losers, 76 gainers, while 27 remained unchanged.
JS Growth Fund led the volume leaders list with 13m shares, down 17 paisa to Rs7.91. It was followed by Nishat Chunian Power lower by 9 paisa to Rs15.26 on 8m shares, D.G. Khan Cement added 16 paisa to Rs44.94 on 4m shares, Arif Habib Corp was up 23 paisa to Rs34.05 on 4m shares and Jah Sidd Co rose 15 paisa to Rs15.17 on 3m shares.
Nishat Power slipped by 9 paisa to Rs15.01 on 3m shares, Hub Power Company declined by 46 paisa to Rs43.02 on 2m shares, Lafarge Pakistan slid eight paisa to Rs4.65 on 2m shares, JS Investments rose by 19 paisa to Rs8.98 on 1m shares and Arif Habib Limited climbed by Rs1.78 to Rs40.81 on 1m shares.


Company news: 10.00 am FFC Annoucement:
FFC result today: KARACHI, July 24: Fauji Fertiliser Company Limited (FFC) is slated to declare financial results and payout for the second quarter of year 2012 on Wednesday. The board would sit to consider the figures and payout after the ‘Iftar’ on Tuesday evening.
The 2Q12 results would accompany the figures for the first half of the year. Investors have been anxiously waiting for the FFC results, for the announcement would be the first by a major company this reporting season and could be harbinger for the results lined-up for later in the week and the next.
Second, investors expect FFC to neutralise the ill effect of the earlier declared financials by the subsidiary, Fauji Fertiliser Bin Qasim (FFBL), which had announced 82 per cent plunge in after tax earnings to Rs644 million (earning per share at Re0.69). That fell short of the analysts’ consensus expectations and more importantly, the board skipped a dividend, which was a blow to investor sentiments.
For FFC, analysts at most brokerage houses were projecting jump of 32 to 35 per cent EPS at around Rs4.30 to Rs4.90. Much of the market is looking forward to a cash dividend for the second quarter at Rs3.50 to Rs4.50. That would add to the 30 per cent already paid in the first quarter.
Arif Habib
The company announced results for the year 2012 on Tuesday, posting a profit at Rs366 million, translated into eps at Rs8.13. It
represented a jump out of the deep red of Rs559 million and the loss per share at Rs12.43, suffered the previous year.

The Board announced Rs3 per share dividend for the shareholders. The main items that turned the tide included surge in “capital gains on sale of investments” to Rs256m, from Rs4 million in 2011 and a huge jump in ‘gain on re-measurement of investments carried at fair value through profit & loss account, to Rs260 million, from Rs12m a year ago.
Other item that helped in turnaround was the decrease in ‘administration expenses’ to Rs210 million, from Rs930 million the previous year.
2)KARACHI, July 24: Intel Pakistan, NexSource Pakistan, eHealth Services Ltd and ASK Development will jointly provide quality healthcare to rural communities through eHealth, aimed at improving human and institutional development of civil society and public sector organisations through partnership in capacity building initiatives, says a press release.
MOHAMMED SALEEM MANSOORI

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