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Tuesday, 4 September 2012

STOCK MARKET UPDATE: 05.09.2012

STOCK:
Karachi Stocks Down 43.40 Points:
KARACHI, Sep 04: At the close of trading, the KSE-100 index was at 15385.09, down 43.40 points.
(TODAY: MARKET PLUS 38.47 …11.11 AM)

September 4, 2012
5 TOP GAINERS  &  LOOSERS:

Rafhan Maize
Rs 189.20
Bata Pak
Rs (24.71)
Indus Dyeing
Rs 19.01
Mithchells Fruit
Rs (16.00)
National Foods
Rs 12.29
Wyeth Pak
Rs (8.00)
Shezan Int’l
Rs 11.55
Al-Abbas Sugar
Rs (5.00)
Island Textile
Rs 11.39
Abbot Lab
Rs (4.11)
Stocks undergo technical correction
KARACHI, Sept 4: After several days of onslaught, the bulls finally took a breather on Tuesday. The KSE-100 index fell 40.36 points to 15,388.13 points.
Most market participants thought that a correction was sign of good health for the market. “An encouraging news that sets a trigger can again charge the bulls, but being very near to its highest-ever mark, the index is understandably under pressure,” said a trader.
On Tuesday, activity was mainly concentrated in second and third tier stocks with hardly any of the big ticket shares among regulars, except for D.G. Khan Cement, could make to the ten volume leaders.
The heavyweight OGDC came in for selling, which also contributed to the downward spiral. The volume also declined by 8.5 per cent to 183 million shares from 201 million shares the earlier day.
Trading value showed a greater fall of 16 per cent to Rs4.880 billion, from Rs5.799 billion. Market capitalisation decreased by Rs8 billion to Rs3.924 trillion, from Rs3.932 trillion.
Many analysts said that the market was generally in a phase of uncertainty as was seen by the index oscillating between high at 15,465.46 points and low at 15,373.43 points. The stocks drifted south in the last thirty minutes of the trading session.
While investors awaited the results of talks of capital market leaders with the MSCI officials in London regarding the re-entry of Pakistan into the ‘Emerging markets’, they also kept an eye on the political developments. All in all, it was a day of directionless trading with the tone uncertain.
Equity Dealer, Samar Iqbal at Topline Securities said that the overall market remained under selling pressure as investors opted to book profit after the healthy market rally in last few trading sessions.
Hasnain Asghar Ali at Escorts Capital said that the early highs failed to find momentum as various stocks from the frontline category struggled to invite renewed buying, thus keeping the benchmark tilted towards negativity. Low priced cement and communication stocks kept the turnover ticking.
Funds which moved in and out of E&P stocks increased activity. The net impact on benchmark however stayed negative. Declines in the heavyweight thus pushed the index closing below 15,400 points level.
The last round of corporate announcements was likely to end by mid-September. The absence of triggers could bring rally to succumb to the pressure on economic, financial and political fronts.
However, the availability of improved infrastructure would continue to resist any major adjustment, analyst said.
Ahsan Mehanti at Arif Habib Corporation stated that stocks closed lower amid profit taking in blue chip stocks. Limited foreign interest, concerns for outstanding circular debt in energy sector affected the sentiments.
Trade remained lower after fall in global stocks and commodities.
ADB ruling out on solo financing of Diamer-Basha dam played a catalyst role in bearish sentiments.
Among the 332 active issues, 165 ended in the minus territory, 139 in plus and 28 remained unchanged.
Bata (Pak) declined by Rs24.71 to Rs1099.99, followed by Mitchell’s Fruit Farm lower by Rs16 to Rs343. On the rising side, Rafhan Maize led with gain of Rs189.20 to Rs4,198 and Indus Dyeing up by Rs19.01 to Rs399.21.
The volume leader for the day was Maple Leaf Cement with trading in 17m shares, up by 45 paisa to Rs8.71. PTCL conceded one paisa to Rs19.03 on 16m shares, after gains in several previous sessions.
Pak Elektron rose by 69 paisa to Rs 9.51 on 11m shares; Fauji Cement added 5 paisa to Rs6.77 on 10m shares, WorldCall Telecom shed 20 paisa to Rs2.85 on 9m shares, Engro Foods jumped by Rs1.08 to Rs74.13 on 9m shares and Jah Sidd Co lost 49 paisa to Rs14.08 on 8m shares.
KESC was up by 6 paisa to Rs6.10 on 6m shares, D.G. Khan Cement edged higher by 7 paisa to Rs51.51 on 5m shares and Dewan Cement added 6 paisa to Rs4.95 on 5m shares.
Company news:
OGDCL raises LPG price: LAHORE, Sept 4: OGDCL, the state-owned LPG producer, increased its LPG price by Rs18,836 to Rs103,940 per ton from Rs85,104 following an increase in the international Saudi Aramco Contract price.
“Local LPG prices which are indexed to Saudi Aramco CP have arisen in direct relation to the Saudi CP which witnessed an increase of $171 per ton,” said Belal Jabbar the spokesman for the LPG Association of Pakistan.
“The hike in the Saudi Aramco Contract price is primarily due to increased use of LPG in Saudi Arabia, leaving little room for its import commitments. Furthermore stockpiling of LPG by China and other energy hungry countries has also impacted the prices,” said Belal.
Retail prices will increase by almost Rs19 per kilo and will be as follows in different parts of the country: Sindh and Balochistan Rs130, Punjab Rs140, AJK and Northern Areas Rs145 per kilo.
The price of domestic cylinder is expected to increase by Rs225 to Rs1,651 and that of commercial cylinder by Rs855 to Rs6,303 per cylinder.

MOHAMMED SALEEM MANSOORI

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