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Tuesday, 11 September 2012

STOCK MARKET UPDATE: 12.09.2012

STOCK:
Karachi Stocks Down 26.17 Points:
KARACHI, Sept 11: At the close of trading, the KSE-100 index was at 15214.02, down 26.17 points. 
(today market >Plus 85.96>>>>>>>>@11.13 am)



Stocks lose 26 points in volatile trading
KARACHI, Sept 11: Equities moved sideways with another slight slip of KSE-100 index by 26.17 points on Tuesday. The index closed at 15,214.02 points.
 Even at its lowest point the index did not sink below the psychological 15,200-level.
The volatility was low with the index touching day’s high at 15,289.14 points. Brokers and traders showed little interest in the trading activity and even the punters and day traders stayed away on fear of being caught on the downside.
Due to lack of trading interest, volume fell to 154 million shares of the trading value of Rs4.08 billion, sharply down from 208 million shares of the value of Rs4.914 billion traded the earlier day.
Yet, much of the volume was witnessed in second and third tier stocks, represented by the fact that seven stocks among the top 10 volume leaders were priced below their par value of Rs10. Foreign portfolio inflow on Tuesday was a minuscule $0.003 million.
The institutions however went into cherry picking, the banks making purchases of $2.21 million worth shares. However, companies sold shares of the order of $1.28 million and individuals were sellers of shares valued at $1.91 million.
Market capitalisation stood reduced by Rs8 billion to Rs3.877 trillion, from Rs3.885 trillion.
The one big ticket company, PTCL which announced its June-end results on Tuesday was a disappointment to shareholders as the telecom skipped the expected cash dividend.
Towards the close of trading, announcement by OGDC of issuance of Term Finance Certificates of Rs82 billion, sent positive vibes to PSO, which gained on hopes of resolution of part of its circulation debt. It also was thought to be positive for OGDC which would earn interest income on the TFCs.
Ahsan Mehanti at Arif Habib Corp stated that stocks closed lower on lack of triggers post major corporate earnings announcements at KSE. Trade remained thin and consolidation continued in bluechip stocks as investors awaited outcome of meeting of MSCI and KSE officials on status up ratings.
Law and order concerns in the city affected the sentiments. Investors also remained cautious on uncertainty in global stocks on weak economic outlook.
Equity dealer, Samar Iqbal at Topline Securities said that another lacklustre trading day was witnessed at local bourse amid political noise. Investors’ sentiments were further dented as no payout accompanied PTC June-end result.
In the aggregate, 328 stocks came up for trading on Tuesday, with 163 closing in the minus, 144 in plus and 21 unchanged.
Unilever Food was the biggest gainer for the day of Rs163.45 while the highest loser was Bata (Pak), down by Rs50.
PTCL was again the volume leader, down 80 paisa to Rs18.81 on 21m shares. KESC after sizeable gains, settled only 5 paisa up to Rs7.50 on 17m shares, JS Bank declined by 21 paisa to Rs5.99 on 10m shares as investors were not enthused by its acquisition of HSBC.
Engro Corporation added Rs1.38 to Rs109.47 on 9m shares, Pace (Pak) slid 5 paisa to Rs3.41 on 8m shares, Jah Sidd Co was up by one paisa to Rs14.08 on 7m shares, WorldCall Telecom declined by 7 paisa to Rs3.11 on 5m shares and Telecard Limited was also down by 12 paisa to Rs3.20 on 4m shares, the two telecom scrips falling in line with PTCL.
Maple Leaf Cement was up by 22 paisa to Rs9.04 on 4m shares and Colony Textile Mills gained 20 paisa to Rs2.72 on 3m shares.
DH Fertilisers raises stake in Hubco
KARACHI, Sept 11: DH Fertilisers Limited has bought 4.788 million shares of Hub Power Company Limited (Hubco) the country’s largest Independent Power Producer (IPP) which added to its earlier holdings of 112.260 million shares, raises the total to 10.12 per cent of the power company equity.
The announcement was made by the DH Fertilisers Limited on Tuesday to comply with the Listed Companies (Substantial Acquisition of Voting Shares and Takeovers) Regulations, 2008.
In March this year, the National Power International Holdings B.V., the major sponsor of Hubco, stepped out divesting its entire 201.8 million shares or 17.44 per cent controlling stake to two major groups the Dawood Group and the Allied Bank Limited.
The former made acquisition through three separate entities Dawood Hercules Corporation 35.48 per cent shares; Dawood Hercules Fertiliser (wholly owned subsidiary of Dawood Hercules Corporation) 102.26 million stock and Cyan (formerly Central Insurance Company) 32.3 million shares.
The elections to the Hubco Board are scheduled to be held on Sept 27.
Much of the market is aware of a quiet attempt by individuals with substantial shares in Hubco to collect proxies from small shareholders which smells of a possible proxy war to secure a seat on the 15-member board of the country’s biggest private power company.
A market participant said that any shareholder with 7 per cent equity interest in the company could hope to make to the board.
So it is difficult to say if the DH Fertiliser acquisition of more shares in Hubco is a sequel to maintain a strong hold on the power company and let outsiders, remain outside.

JS Bank signs deal with HSBC
KARACHI, Sept 11: JS Bank Ltd on Tuesday signed a sale and purchase agreement with HSBC Bank Middle East Limited for the acquisition of HSBC-Pakistan operations.
HSBC said it had agreed to sell its Pakistan operations, which comprises of 10 branches, to JS Bank a day earlier in London. However, the sum of the deal has not yet been disclosed.
JS Bank informed its shareholders through a notification to the Karachi Stock Exchange that the sale/purchase agreement sets out a methodology for the determination of the sale price which will be finalized by the date of completion of sale which is expected by the end of this year.
HSBC as part of its global restructuring decided to sell off small assets or less profitable operations in several countries including Pakistan.
The bank is in serious trouble on a global level as it has been facing highly damaging allegations such as money laundering in Mexico and interest rate manipulation.
At least a dozen banks are being investigated by regulators worldwide for rigging the rate and regulators from Stockholm to Seoul are reexamining how benchmark rates are set. At least three institutions were competing to buy HSBC Pakistan operations including Isbank of Turkey.
The banking circles prior to the announcement thought that Turkey’s Isbank stood a better chance of acquiring HSBC Pakistan since it’s a larger bank with presence in several countries.
The SBP said it had not yet been informed about the deal between JS Bank and HSBC.
“Neither we have been officially informed nor we have been approached for approval of the deal,” said the State Bank’s spokesman.
The State Bank has to give the final approval for the deal between the two banks.
Bankers view the deal as a positive development as a local bank offering a better price to acquire HSBC Pakistan reflected the strength of the banking sector in Pakistan.

Company news:
PTCL posts Rs7.2bn profit: ISLAMABAD, Sept 11: Pakistan Telecommunications Company Limited (PTCL) reported a net profit of Rs7.24 billion in fiscal year 2011-12, showing a steady increase of 9 per cent in revenue.
Chief Executive Officer (CEO) & President of PTCL, Walid Irshaid said that the growth of company’s revenue reflects PTCL’s dynamic corporate identity and strong customer base.
As per the announcement, PTCL’s group revenue stood at Rs110.8 billion during the period under review, showing a growth of 8 per cent, compared with Rs102.6 billion last year.
PTCL achieved the country’s first One Million Broadband customer’s mark in May 2012.—APP

MOHAMMED SALEEM MANSOORI

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