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Wednesday, 1 August 2012

STOCK MARKET UPDATE: 02.08.2012



STOCK:
Karachi Stocks Up 53.61 Points:
KARACHI, Aug 02: The KSE-100 index was at 14770.47., up 53.61 points. (today 10.50 am)

August 01, 2012
5 TOP GAINERS  &  LOOSERS:

UniLever Pak
Rs 245.00
UniLever Food
Rs (116.25)
Rafhan Maize
Rs 124.00
Mithchells Fruit
Rs (9.53)
Colgate Palmolive
Rs 59.59
Shell Pak
Rs (3.04)
Siemens Pak
Rs 36.12
PICT
Rs (2.57)
Shezan Int’l
Rs 11.79
Murree Brewery
Rs (2.24)

KSE-100 index climb to its 50-month high level at 14,716.86 points.
KARACHI, Aug 1: Stocks staged a robust rally at the Karachi stock market on Wednesday, which saw the KSE-100 index climb to its 50-month high level at 14,716.86 points.
The benchmark gained 139.86 points during the day on higher volume. Shares across the board were on the rise, led by the cement sector. Six out of the 10 volume leaders for the day belonged to the cement sector. Samar Iqbal, equity dealer at Topline Securities said that the cement stocks had rallied as investors anticipate decline in interest rates in the upcoming SBP Monetary Policy Statement (MPS), which would help cement companies which carry heavy debts in their books. Lower than expected inflation number for the month of July also supported investor sentiments.
Market participants said that all groups of investors, local individual, institutional and foreign investors jumped on the bandwagon. Retail investors were also present in large number, represented by volume which surged by 35 per cent in terms of shares to 105 million shares on Wednesday, from 78 million shares the earlier day.
The trading value increased 12 per cent to Rs3.443 billion, from Rs3.076 billion. Market capitalisation soared by Rs36 billion to Rs3.760 trillion from Rs3.724 trillion.
Hasnain Asghar Ali, COO at Escorts Capital, stated that the resumption of trade ties with the potential consumer of local cement and likely dispatch of Coalition Support Fund (CSF) by US kept the benchmark in the green zone.
The entire sector displayed strength supported by hefty volume, since the sector stocks earnings multiples are the lowest in the region. It was supported by likely increase in demand on both export and local fronts.
The short term punters thus were active throughout the session. Also stocks having speculative tendency and trading well below historic price-to-earnings multiples registered substantial gains.
Banking stocks however under went minor technical adjustment as the upcoming results of the sector could hold surprises mainly on payouts, as compared to those meeting for bi-annual results.
However the ability of frontline banking stocks to stay in line with earnings expectations were envisaged to reignite volumetric activity for both short term trading and placements, based on their running price to book value ratios.
The options for the investors, therefore, remained open. The resumption of friendly ties with US, led to re-imbursement of funds that were withheld. Also the development was thought to provide support to the improvement in trade quotas, with both US and Europe and facilitate in yet another IMF programme to smoothen debt retirement process.
However, fragile economic and financial conditions and likely increase in political volatility were disconcerting thoughts for they could put stumbling blocks on the road to recovery.
The KSE-30 index gained 104.89 points to 12,712.15 points. The total active stocks on Wednesday were 279, of which 157 were gainers, 97 losers and 25 remained unchanged. Maple Leaf Cement with the highest turnover of 18m shares, added 97 paisa to
Rs7.33. D.G. Khan Cement gained Rs1.22 to Rs47.43 on 13m shares, Fauji Cement stood on the third place with volume of 9m shares, traded up by 11 paisa up to Rs6.26 and Lafarge Pakistan added 19 paisa to the overnight value to end at Rs5.06 on 6m
shares.

Dewan Cement on the sixth place rose by 26 paisa to Rs4.35 on 3m shares and last of the heavily traded, Lucky Cement on the eight place, saw volume of 2m shares, the stock soared by Rs3.04 to Rs127.55, recovering part of the losses suffered in the last
two sessions.

Other than cements, Jah Sidd Co shed 2 paisa to Rs15.36 on 4m shares, Engro Foods fell by Rs1.14 to Rs69.70 on 3m shares, Hub Power Company rose by 78 paisa to Rs44.19 on 2m shares and National Bank of Pakistan edged higher by one paisa to Rs46.60 on 2m shares.

Pakistan stocks close on four-year high; rupee almost flat
ISLAMABAD: Pakistan’s main stock market ended on a four-year high on Wednesday with investor confidence boosted by below-expectation inflation data for July, dealers said.
The Karachi Stock Exchange benchmark 100-share index gained 139.86 points, or 0.96 per cent, to close at 14,716.86 on volume of 62.9 million shares, its highest close since May 2008.
“Lower-than-expected inflation numbers for July pushed (up) the KSE-100 index,” said Samar Iqbal, a dealer at Topline Securities.
Pakistan’s Consumer Price Index (CPI) rose 9.60 per cent in July from a year earlier, the Pakistan Bureau of Statistics said on Wednesday. The year-on-year rate was 11.26 per cent in June.
In the currency market, the rupee closed almost flat at 94.61/67 to the dollar, compared with 94.62/68 on Tuesday.
Overnight rates in the money market closed lower at 11 per cent, compared with 11.90 per cent on Tuesday, because of increased liquidity.
Company News:
1) PM orders release of $4.5m to PIA: ISLAMABAD: Prime Minister Raja Pervez Ashraf asked the ministry of finance on Wednesday to release $4.5 million to PIA on priority basis so that it could acquire aircraft on lease.
The prime minister further asked the finance ministry to work out a plan for rescheduling of its Rs147 billion loans.
On a request by the PIAC Chairman, Rao Qamar Suleman, the Prime Minister said that the government would consider conversion of a loan of Rs8 billion into equity by the federal government.
The prime minister issued these directives at a meeting during which he assured the PIA management that the government would extend all possible assistance to PIA to ensure that it makes a turn around and regains its status of a national carrier. He appreciated the business plan worked out by PIAC.
Rao Qamar Suleman briefed the prime minister on the salient features of the business plan prepared in line with directions and policy guidelines given by the president and the prime minister.
Mr Suleman spoke on current financial and operational problems faced by PIA and said that fuel cost and cost of financing were eating away a substantial part of the annual revenue of Rs117 billion.
He proposed short term, medium term and long term plans to resolve the problems being faced by PIAC and bring it out of its present difficulties.
Raja Pervez Ashraf expressed the hope that the PIAC management would bring about marked changes in the shortest possible time.
He appreciated the initiative of PIAC to carry intending Haj pilgrims from Iraq, Myanmar, Sri Lanka and Bangladesh, enabling them to perform Hajj.
However, he observed that these operations should in no way create any cause of complaints for Hajis traveling from Pakistan.
The briefing was attended among others by federal ministers for defence and finance, deputy chairman of Planning Commission and federal secretaries.

MOHAMMED SALEEM MANSOORI

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