STOCK MARKET UPDATE: 03.10.2012

STOCK:
Karachi Stocks Up 81.81Points:
KARACHI, Oct 03: The KSE-100 index was at 15730.10, up 81.81 points. ( @ 11.22 am)

October 02, 2012

5 TOP GAINERS  &  LOOSERS:

Bata Pak	Rs 20.00	Rafhan Maize	Rs (69.30)
Mithchells Fruit	Rs 16.37	Siemens Pak	Rs (37.95)
Colgate Palmolive	Rs 15.61	Indus Dyeing	Rs (21.99)
Nestle Pak	Rs 15.01	Ismail Industries	Rs (6.65)
Pak Oilfields	Rs 10.75	Clover Pak	Rs (5.43)

Karachi Stocks -Discount rate cut hopes give KSE a lift

KARACHI: Stocks at the local equities market closed higher on Tuesday as investors remained optimistic about the monetary policy announcement on Friday, traders said.

The Karachi Stock Exchange (KSE) benchmark 100-share index ended 0.57 percent, or 88.35 points, higher at 15,648.29 – a four-year high -- on total volume of 140.79 million shares.

"The primary reason is the inflation numbers. People are speculating ahead of the monetary policy. Inflation is coming down so the possibility is high that discount rate will be lower," said a dealer.

"There is an improvement in global oil prices and improvement in local cement prices."

The central bank is expected to announce a monetary policy decision on October 5.

Pakistan's consumer price index (CPI) rose 8.79 percent in September from a year earlier, the Pakistan Bureau of Statistics said on Monday.

The year-on-year rate in August was 9.1 percent. On a month-on-month basis, the CPI increased by 0.79 percent from August, according to the bureau. (Reuters)

KSE upbeat on interest rate cut hopes

KARACHI: Karachi Stock Exchange (KSE) seems to have resumed its upward drive on the expectation of a further cut in the discount rate in the monetary policy to be announced by the State Bank of Pakistan (SBP) on October 5.
The trading today soon went brisk as the investors were seen exuberant that sent the KSE-100 index surging by 150 points to peak at the highest ever at 15,712 as against previous high of the highs at 15,676 in April, 2008.
Analyst said that the investors in the light of yesterday’s data released for September inflation anticipating that the Central Bank in its monetary policy to be announced on October 5 may further cut down the discount rate by 1 percent from the current 10.5 percent.
Karachi Stocks close to all-time high
KARACHI, Oct 2: Expectations of a cut in the central bank’s key policy rate in the upcoming monetary policy lifted investors’ sentiment and led the market to close to its all-time high on Tuesday but selling pressure was witnessed in cement and textile sectors, dealers said.
The monetary policy is due to be announced on Friday and analysts are expecting a cut up to a 100 basis points.
The Karachi Stock Exhange (KSE) 100-share index ended 0.57 per cent, or 88.35 points, higher at 15,648.29 and turnover rose to 140.79 million shares from 135.8 million shares traded on Monday.
Trading value increase by over Rs1 billion to Rs5.96 billion from the previous day’s value of Rs4.73 which indicated investor interest in blue chip companies. Market capitalisation also rose to Rs3.95 trillion compared to Monday’s Rs3.93 trillion.
“Stocks closed bullish led by oil stocks after September’s CPI inflation stood at 8.79 per cent year-on-year raising rate cut expectations ahead of SBP policy rate announcement,” said Ahsan Mehanti from Arif Habib Corp.
Energy sector led the rally with the heaviest weighted stock, Oil and Gas Development Co Ltd, gaining Rs2.14 to close at Rs182.91, Pakistan Oilfields rose Rs10.75 to Rs450.05 and Pakistan Petroleum Ltd ended 95 paisa higher at Rs177.47.
“While profit-taking was witnessed in banking sector and cement stocks,” said Samar Iqbal, a dealer at Topline Securities.
Cement stocks were under pressure as investors booked profits after these stocks had gained in previous sessions amid expectations of strong dispatches from Sept and healthy corporate earnings.
Banking stocks witnessed selling because if the discount rate is slashed, then it could hurt the banking sector’s margins.
The KSE-index is hovering close to its all-time high of 15,737.32 points as it made its intra-day high at 15,725.66, therefore some profit booking can be expected in the coming sessions, dealers said.
Foreign investors were active as they bought shares worth a net $2.16 million, compared to a net outflow of $317,950 on Monday. Companies were the major sellers of equity worth $7.14 million.
The market capitalisation based KSE-30 index gained 0.57 per cent, or 74.54 points, to close at 13,200.83. Out of the 318 companies traded, the value of 165 advanced, 127 declined and 26 remained unchanged.
Bata Pakistan Ltd witnessed the largest increase of Rs20 to Rs10,000 followed by Mitchell’s Fruit which gained Rs16.37 to Rs359.
Rafhan Maize shed Rs69.30 to close at Rs3,899, the largest decrease, followed by Siemens which ended Rs37.95 lower at Rs722.05.
The following companies were the top 10 most active in the market on Tuesday: volume leader PTCLA fell 29 paisa to close at RS19.56 on turnover of 12.93 million shares, Lafarge Pakistan shed 5 paisa to Rs5.96 on 8.17 million shares and Fauji Fertiliser Bin closed Rs1.66 higher at 39.17 on 7.35M shares. Maple Leaf Cement decreased by 25 paisa to Rs9.2 on 6.91 million shares, Engro Foods gained Rs1.54 to Rs72.50 on volume of 5.34 million shares but Fauji Cement fell marginally by 2 paisa to end at Rs6.41.
Attock Refinery Ltd gained Rs6.66 to Rs140.03 on 4.72 million shares, Nishat Chunian shed Rs1.04 to Rs22.23 on 4.6 million shares, Bank Alfalah fell 3 paisa to Rs15.09 on 4.17 million shares and Nishat Mills Ltd ended 26 paisa lower at Rs57.50 on 4.16 million shares.

MOHAMMED SALEEM MANSOORI