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Thursday, 29 November 2012

STOCK MARKET UPDATE: 30.11.2012



STOCK
Karachi Stocks Up 101.53 Points:
KARACHI, Nov 29: At the close of trading, the KSE-100 index was at 16525.56, up 101.53 points.
 (Today Market is 99.43 Up @ 10.55 am)

November 29, 2012
 5 TOP GAINERS  &  LOOSERS:

UniLever Pak
Rs 509.25
Mithchell’s Fruit
Rs (16.00)
Unilever Food
Rs 210.00
Exide Pak
Rs (15.14)
Colgate Palmolive
Rs 65.00
Sunrays Textile
Rs (9.05)
Island Textile
Rs 42.85
Sapphire Fibre
Rs (8.69)
Sapphire Textile
Rs 10.01
Philip Morris
Rs (4.37)
Stocks settle above 16,500-level
KARACHI, Nov 29: Stocks raised to yet another record high on Thursday as the banking sector came into the limelight led by MCB Bank, which is expected to benefit from the delisting of Unilever, dealers said.
The KSE 100-share index ended 0.63 per cent, or 103.05 points, higher to record closing high of 16,527.08 points. It also hit a fresh all-time high at 16,556.29 points.
Turnover decreased to 255.98 million shares, compared with 312.7 million shares traded on Wednesday, as some investors were cautious and preferred to stay on the sidelines as the index breached its previous all-time high. Trading value also fell to Rs6.56 billion from the previous day’s value of Rs7.62 billion but market capitalisation rose to Rs4.15 trillion, compared with Rs4.13 trillion on Wednesday.
“The stock market closed at yet another high led by banking and some other blue-chips amid hopes for cut in the SBP policy rate due early next month,” said Ahsan Mehanti from Arif Habib Ltd.
Intention of one of the largest consumer goods company, Unilever Pakistan with market cap of $1.4bn, to de-list from the country’s three bourses was announced yesterday.
Unilever Overseas Holding Ltd, which currently holds 75.07 per cent of the issued capital of Unilever Pakistan, said it intends to acquire all of the issued ordinary shares held by other shareholders at Rs9,700 per share.
Unilever was the once again the biggest gainer, for the second consecutive day, as it increased by Rs509.25 to Rs10,694.25, followed by Unilever Food which was up Rs210 to Rs4,410.
Besides few local and foreign shareholders, this may bode well for selected listed firms like Adamjee Insurance (AICL) and MCB Bank (MCB) who are old minority shareholders of Unilever Pakistan, Topline said in a note.
“In case the price remain as mentioned in the announcement at Rs9,700, the AICL EPS will inch up by Rs1.8 and MCB by Rs0.3 assuming both willing to sell at the agreed price after considering capital gain tax and cost of purchase,” the note added.MCB Bank gained Rs1.82 to Rs189.90 and AICL closed Rs2.54 higher at Rs73.77.
However profit taking was witnessed in the cement stocks as they had been increasing in the past few trading sessions.Foreign investors bought equities in the net sum of $2.24 million, compared with $2.6 million on Wednesday, taking the current month portfolio investment to $34.54 million. Among the local participants, banks were the major buyers as they bought shares worth a net $4.6 million.
The KSE-30 index ended 0.60 per cent, or 80.20 points, higher at 13,381.21 and out of the 382 companies traded, the value of 173 increased, 182 decreased while 27 remained unchanged.
Among the 10-top traded stocks, Jahangir Siddiqui Co charged from the front with volume of 28.09 million shares, up 97 paisa to Rs16.65, DG Khan Cement fell 94 paisa to Rs54.20 on 19.39 million shares and Fauji Cement shed 10 paisa to Rs6.84 on 18.84 million shares.
Maple Leaf Cement ended 87 paisa lower at Rs15.22 on 18.81 million shares, Byco Petroleum rose 31 paisa to Rs10.62 on 9.89 million shares and Engro Foods Ltd increased by Rs2.41 to Rs87.07 on 9.8 million shares.
The monopoly utility provider KESC saw turnover of 9.69 million shares, up by 31 paisa to Rs6.93, Azgard Nine gained 6 paisa to Rs8.60 on 8.2 million shares but Dewan Cement ended 23 paisa lower at Rs5.25 on 6.26 million shares.
Colony Mills Ltd rose 54 paisa to Rs6.57 on 5.97 million shares.
Cement export to India via rail hits snags
LAHORE, Nov 29: Cement export to India through rail has come to a halt owing to the alleged narcotics smuggling from Pakistan via Wagha border.
Seizure of narcotics from freight trains carrying Pakistani goods to India through Wagha during the past four months has forced cement manufacturers to send their dispatches through road, said a Pakistan Railways official on Thursday.
In the first week of October, Indian customs authorities found 105 kilogrammes of heroin from a freight train (its Bogey No 66,938) at Amritsar Railway Station while unloading Pakistani cement.
The seal of the wagon was intact till it reached Atari but was found broken on arrival at Amritsar. This fact was acknowledged by the Indian officials during preliminary investigations, said the railway official.
“Recovery of 105 kg of heroin at Amritsar cannot be blamed on Pakistan as the freight wagon from which the narcotics were seized was sealed after it crossed over to India. The seal was broken inside India and the responsibility lies with them,” he said.
A leading exporter told Dawn that at present, cement was being exported to India through trucks only. Indian authorities allow limited number of trucks carrying cement to cross over, resulting in declining export dispatches.
Cement exports to India declined by 37.51 per cent to 0.158 million tons in October this year. Cement dispatches declined by 5.87 per cent mainly due to a drastic decline of 20.59 per cent in the commodity export to Afghanistan, India and other destinations.
The exporter said that recovery of narcotics a number of times during the last four months from Pakistani cement dispatches has adversely affected exports to India.
The All Pakistan Cement Manufacturers Association (APCMA) approached Pakistani customs and railways authorities who agreed to increase vigilance and take more stringent measures to eliminate the chances of narcotics going into India through Wagha.
“Pakistani authorities did take some measures immediately after the meeting but perhaps owing to lack of staff, the arrangements fizzled out after some time” said the exporter on the condition of anonymity.
He said instead of risking suspension of total cement exports they decided to limit exports through road only as clearance of trucks at the Indian border post at Wagha has been very slow. “One freight wagon of the railways carries more cement across the border than 10 trucks,” he informed.
The exporter said that since cement exports were already on decline, the trend proved to be a big blow not only to the manufacturing sector but also to bilateral trade between India and Pakistan. “Perhaps, it can derail the trade liberalisation process,” he said.
After opening of land route and rail link, it was expected that the industry would be able to export more than five million tons of cement to India, but that never happened. Still, more NTBs from India along with allegations of smuggling of narcotics, is making this option highly unfavorable to Pakistan’s cement industry,” said the exporter.
MOHAMMED SALEEM MANSOORI

Wednesday, 28 November 2012

STOCK MARKET UPDATE: 29.11.2012



STOCK
Karachi Stocks Up 59.26 Points:
KARACHI, Nov 28: At the close of trading, the KSE-100 index was at 16424.03, up 59.26 points.
 (Today Market is 73.12 Up @ 10.58 am)




November 28, 2012
 5 TOP GAINERS  &  LOOSERS:

UniLever Pak
Rs 485.00
Wyeth Pak
Rs (36.00)
Nestle Pak
Rs 201.00
Sanofi Aventis
Rs (17.00)
Rafhan Maize
Rs 99.00
Bhanero Textile
Rs (7.00)
Bata Pak
Rs 72.12
Pak Gum & Chem
Rs (6.27)
Island Textile
Rs 41.15
Atlas Battery
Rs (4.55)
Stocks add 59 points to overnight gains
KARACHI, Nov 28: The Karachi Stock Exchange (KSE) achieved two milestones on Wednesday as it hit a new all-time high of 16,504.09 points and ended at its highest ever level of 16,424.03 points, led by the fertiliser and the FMCG sector.
The KSE 100-share index ended 0.36 per cent, or 59.26 points, to record high of 16,424.03 points. Turnover decreased slightly to 312.7 million shares, compared with 317.8 million traded on Tuesday, as some investors were cautious and preferred to stay on the sidelines as the index breached its previous all-time high.
But trading value rose to Rs7.62 billion from the previous day’s value of Rs6.9 billion and market capitalisation ended at Rs4.13 trillion, compared with Tuesday’s Rs4.1 trillion.
“The buyback announcement from Unilever management brought renewed interest in the stock business as investors anticipating the deal to be struck at a higher level. While investors’ interest was also seen in other consumer stocks like Nestle and Engro Foods,” said Samar Iqbal, a dealer at Topline Securities Ltd.
Engro Corp also remained active in anticipation that the government may soon provide gas to its second plant.”
Unilever Overseas Holding Ltd, which currently holds 75.07 per cent of the issued capital of Unilever Pakistan, said it intends to acquire all of the issued ordinary shares held by other shareholders at Rs9,700 per share.
Unilever was the biggest gainer as it increased by Rs485 to 10,185, followed by Nestle which was up Rs201 to Rs4,900.
“Official stance to do away with CNG in phases, with import of gas substitute for domestic use already in process, kept the fertiliser sector in lime-light,” said Hasnain Asghar Ali from Escorts Capital.
The Pakistani equity market which has already reaped an enviable return of 45 per cent in the current year continues to outperform all major world and regional markets.
Foreign investors bought equities in the net sum of $2.6 million, compared with $0.80 million on Tuesday, taking the current month portfolio investment to $32.3 million. Among the local participants, individuals decided to take profit through sale of $1.71 million worth shares.
The KSE-30 index ended 0.31 per cent, or 59.26 points, higher at 13,301.01 and out of the 394 companies traded, the value of 179 increased, 189 decreased while 26 remained unchanged.
Among the 10-top traded stocks, Fauji Cement charged from the front with volume of 40.18 million shares, up 4 paisa to Rs6.94. The monopoly utility provider KESC saw turnover of 35.1 million shares, up by 6 paisa to Rs6.62. The third and fourth slots were also taken by cement stocks as Dewan Cement with volume of 19.5 million shares gained 30 paisa to Rs5.48 and Lafarge Pakistan settled at Rs5.38 on 15.25 million shares, adding 7 paisa to the stock’s overnight value.
Engro Corporation rose Rs2.26 to Rs97.53 on turnover of 14.5 million shares, followed by Engro Foods which ended up Rs3.91 to Rs84.66 on 13.77 million shares. DG Khan Cement fell 26 paisa to Rs55.14 on 10.24 million shares.
Wateen Telecom Ltd gained 32 paisa to Rs3.13 on 8.81 million shares, Jahangir Siddiqui Co shed 5 paisa to Rs15.68 on 7.11 million shares and Byco Petroleum ended 9 paisa higher at Rs110.1 on 6.23 million shares.
NCCPL collects Rs310m under CGT
KARACHI, Nov 28: The National Clearing Company of Pakistan (NCCPL) has collected a sum of Rs310 million under the Capital Gains Tax (CGT) in little over five months period from April 24 to Sept 30, 2012, a statement released by the NCCPL on Wednesday said.
The new CGT System came into effect from Sept 13 according to which the collection of CGT was handed over to the NCCPL. The press release stated that the investors put their trust in the new CGT regime developed by NCCPL and fulfilled their CGT obligation in a transparent manner through automated collection process without any human intervention.
NCCPL had collected CGT amounting Rs103.27 million and Rs206.35 million in respect of trades/transactions executed and settled during the period April 24, 2012 to June 30, 2012 and July 1, 2012 to September 30, 2012 respectively, whereas collection of October was said to be in progress.
The new system of collection by NCCPL had received wide acceptability by investors and brokerage houses due to the accuracy of typical and complex calculations involved in determination of CGT on each and every trade/transaction of the capital market, NCCPL said in the note.
The CEO of NCCPL, Muhammad Lukman appreciated the initiative taken by the Chairman Securities and Exchange Commission of Pakistan to revive entire CGT regime so as to achieve the government’s objectives to generate additional revenues as well as to relieve investors from the complex calculation and record retention.
Company news:
PIA to buy eight aircraft next year: ISLAMABAD, Nov 28: Pakistan International Airlines (PIA) will add eight Airbus aircraft to its fleet in 2013, with the first aircraft joining the operation in February next year.
PIA Managing Director Junaid Yunus, leading the new management, informed Prime Minister Raja Pervez Ashraf here on Wednesday that five Airbus aircrafts will be added to the PIA fleet during the first half of 2013, while three such aircrafts will be acquired during the second half of the year.
The PIA official informed the prime minister that the narrow-body aircraft will be fuel-efficient and lead to massive savings in fuel cost which presently constitutes 55 per cent of total revenue earned by the airlines.
PIA is actively considering a proposal to outsource non-core operations in order to reduce employee-to-aircraft ratio which is presently 485 employees per aircraft, MD PIA informed the prime minister.
“A business plan of the airline is being firmed up with emphasis on facilitating the passenger so that business can be attracted. The business plan being worked out is being prepared with the objective of attaining a break even by 2013,” he added.
The present share of PIA in the international passenger business generating from Pakistan is 32 per cent while PIA has a share of 71 per cent in the domestic market, he informed.
The national airline has earned operational profit in September and October this year which sets the tone and pace of recovery, he said.
It was also shared that PIA will start flights on Quetta-Kandhar route from December 25 this year. This is the first time that a new destination has been initiated in years, he said.
The prime minister directed the PIA management to consider feasibility of running more flights to Gilgit-Baltistan and Chitral.
He expressed the confidence that the new management of PIA will turnaround the airline with a new passenger-friendly face. He asked the management that all grey areas must be addressed and loopholes plugged and economic viability of PIA ensured.
Siemens to buy Invensys Rail: FRANKFURT, Nov 28: German industrial giant Siemens said on Wednesday it had reached an agreement to buy Invensys Rail from the British technology company Invensys for about 2.2 billion euros ($2.8 billion).
Siemens also announced it planned to divest its baggage handling, postal and parcel sorting activities.
“Today’s moves are important measures to focus our core activities,” Roland Busch, chief executive of Siemens Infrastructure & Cities said in a written statement.
“We are exiting a non-core business with limited synergy potential while strengthening a resilient and high return business by combining two organisations with similar cultures and attractive synergy potential,” he added.
Invensys Rail, which has revenues of about £800 million (991 million euros), is a leading software based rail signalling and control company and will expand Siemens’ presence in the growing global rail automation market, it added.
The deal is subject to approval by Invensys shareholders and regulatory clearances, Siemens said.—AFP

MOHAMMED SALEEM MANSOORI

Tuesday, 27 November 2012

STOCK MARKET UPDATE: 28.11.2012



STOCK
Karachi Stocks Up 94.29 Points:
KARACHI, Nov 27: At the close of trading, the KSE-100 index was at 16,364.77, up 94.29 points. 
(Today Market is 137.11 Up @ 12.01 pm)

November 27, 2012
 5 TOP GAINERS  &  LOOSERS:

Unilever Food
Rs 190.00
Linde Pak
Rs (3.38)
Bata Pak
Rs 74.55
Noon Pak
Rs (2.28)
UniLever Pak
Rs 50.00
Liberty Mills
Rs (2.25)
Island Textile
Rs 35.50
Shifa Int’l Hospital
Rs (2.00)
Fazal Textile
Rs 10.40
PICT
Rs (1.81)
Bulls toss KSE 100-index to new high
KARACHI, Nov 27: Stocks galvanized at the stock market on Tuesday, with the fiery bulls tossing the KSE-100 index up by 94.29 points to all-time high at 16,364.77 points.
The Pakistani equity market which has already reaped an enviable return of 46 per cent in the current year continues to outperform all major world and regional markets. Yet there are no signs of abatement in market’s relentless climb.
Traders said that the sharp spurt in stock prices on Tuesday was seen across-the-board with cement and textile scrips in the forefront.
Unlike the past several weeks when side board or second and third tier scrips had continued to dominate day’s trading, shares on other heavy-weight counters such as oil and gas also came up for brisk buying on Tuesday.
Attock Petroleum and Pakistan State Oil were in the limelight which saw upward spiral in prices by Rs8.30 and Rs7.79, respectively. The market volume increased by 22 per cent to 318 million shares on Tuesday from 260 million shares the previous day and the trading value jumped by 87 per cent to Rs6.9 billion from Rs3.7 billion.
“The day proved to be investors, traders and brokers’ delight,” said a market guru who asked not to be waylaid by the KSE-100 index. “There are scores of stocks that are still very much under-valued and a further climb cannot be ruled out,” he said.
Yet the timid and the nervous investors were caught between the greed to amass gains and a deep feeling of unease at such dizzy heights. Even the analysts espousing caution since last week, were bewildered by the strong market gains on Tuesday.
Some thought it could be late buying triggered by investors’ relief as the Muharram holidays passed off generally in peace.
Foreign investors bought equities in the net sum of $0.80 million on Tuesday, taking the current month portfolio investment to $29.7 million. Among the local participants, mutual funds decided to take profit through sale of $3.58 million worth shares. Individuals were net buyers of stocks valued at $1.5 million.
Analyst Hasnain Asghar Ali stated that with various front line stocks still trading at attractive levels the local equity market was likely to invite fresh flows both from local and off-shore corridors.
Equity dealer Samar Iqbal stated that renewed buying was seen in cement stocks amid expectations of earnings growth in quarter ended Dec over the earlier quarter. The dealer attributed rejuvenation in textile stocks to improving margins.
Commentator Ahsan Mehanti said that the higher textile sector exports on EU relaxations and speculations on rate cut ahead of SBP policy to be announced next month played a catalyst role in bullish sentiments at KSE despite concerns for higher fiscal deficit and lower banking spreads.
The news flow was mixed; the central bank noted that the repatriation of dividends and interest income outpaced the inflow of investments made by the foreigners in the first four months of the current fiscal year exerting pressure on already dwindling foreign exchange reserves.
On the other hand, the Planning Commission of Pakistan released Rs90.4 billion under its Public Sector Development Programme (PSDP) for infrastructure development and social sector projects.
The market value of all 573 listed stocks (market capitalisation) stood at Rs4.1 trillion on Tuesday. The margin between the gainers and losers was narrow with 195 stocks closing in green and 179 in the red.
Among the 10-top traded stocks, Fauji Cement charged from the front with volume of 32 million shares, down 13 paisa to Rs6.90. The monopoly utility provider KESC saw turnover of 28 million shares, up by 73 paisa to Rs6.56. The third and fourth slots were also taken by cement stocks as D.G. Khan Cement with volume of 20 million shares gained Rs1.96 to Rs55.40 and the second-tier Maple Leaf, after fluctuating wildly, settled at Rs16.61 on 16 million shares, adding 17 paisa to the stock’s overnight value.
KSE hits record high on rate-cut hopes
KARACHI: Stocks rose to a record high near 16,400 points on Tuesday, driven by a spike in cement stocks and expectations that the central bank will cut rates at next month's meeting.
The Karachi Stock Exchange's (KSE) benchmark 100-share index surged to a record high of 16,375.36 in intraday trading. It closed at 16,364.77, up 0.58 percent or 94.29 points from the previous session.
"Renewed buying was see in cement stocks amid expectations that their December results would be better than the last quarter," said a dealer.
The market also found support from expectations that the State Bank of Pakistan will cut its discount rate at next month's monetary policy meeting.
D.G. Khan Cement rose 3.65 percent, or 1.95 rupees, to 55.39 per share, while Karachi Electric rose 12.01 percent, or 0.70 rupees, to 6.53 per share. (Reuters)
Company news:
PSO sets sights on place in Fortune-500: ISLAMABAD, Nov 27: Pakistan State Oil plans to convert itself into a fully integrated energy firm starting from oil and gas production, shipping, refining and transportation and stop signing fresh contracts for furnace oil supplies for power sector.“Within two years, PSO would become the country’s number one company, turn into a regional player in four years and become a global Fortune-500 firm in six years to trade internationally,” PSO Chief Executive and Managing Director Naeem Yahya Mir said at a news conference on Tuesday.
He said despite being the country’s largest fuel supplier and market leader, PSO currently operated in a very limited area of marketing where profits were saturated because distribution and marketing sector earned only less than 20 per cent of the entire supply chain.
Mir explained that oil and gas exploration companies earned over 60 per cent of profits as production cost hovered $1-$3 per barrel of crude oil that was being sold at $110 barrel per barrel. Shipment industry made another 8 per cent of the revenue, followed by 12 per cent by refining sector and 20 per cent by marketing and distribution sector.
He said the leading state-oil companies of the world like Petrobras, Petronas, Petrochina and Indianoil had become global players because they were integrated oil companies with control over the entire supply chain from crude and gas production to separation of liquid gas, LNG, exports through tankers and pipelines, supply to retail network, storage and refining.
He said PSO had decided not to enter into fresh contracts for furnace oil supplies because furnace oil was a waste of energy.
“Pakistan’s power sector is using 180cs fuel that is of very poor quality, not used anywhere in the world, despite losing up to $80 per ton. We have to convert to 380cs fuel that has better viscosity and output, by improving blending and ultimately setting up modern refineries,” he added.
He said Pakistan’s entire refining sector was obsolete and outdated that was developed in 1960s and their configuration was causing enormous losses to the country.
Pakistan’s refineries produced only 90 per cent value of the crude which needs to be dismantled and modified.

“We have to enter into entire supply chain from production to refining, shipment and transportation to reduce cost of production”, he said. Under the same model, the PSO had recently signed a contract with Pakistan National Shipping Corporation for a joint business model under which PSO would bring crude from abroad only through PNSC.
He said Pakistan imported 6.6 million tons of furnace oil, 3.5 million tons of high speed diesel and 1.5 million tons of motor spirit which would convert PNSC into a mega firm if it was able to cater to PSO’s shipments.
He said as an international professional, he did not mind if some people make money out of shipping business but this money should go into the hands of Pakistani companies and citizens instead of flowing it into the pockets of foreign firms and individuals.
Mir, who had worked Kuwaiti oil firms at senior positions for more than two decades, said Pakistan made a big mistake 15 years ago when it entered into contracts with Kuwaiti firms for delivery of oil in Pakistan unlike India that ensured delivery of oil at Kuwait ports and utilised its own, although poorly managed ships for shipment to India.
Resultantly, as Pakistan kept on losing foreign exchange to foreign firms for oil shipments, India developed its shipping industry to a stage that its professionals ruled the global energy firms.
“Recently PSO invited proposals for consultants and received four bids from top global firms all having Indian consultants”.
He said the PSO would set up its own refinery in Khyber Pakhtunkhwa where fresh discoveries of crude oil were coming up and establish a huge storage facility at Hub in Balochistan through a joint venture with a Middle Eastern firm for strategic diversion of oil supplies from Port Qasim where facilities were congested.
Responding to questions over recent deals for fuel supplies without tending and bidding process, the PSO chief claimed no violation of rules had been committed but said “the public procurement rules are bottlenecks and you need flexibility for faster development”. Explaining, he said the application of PPRA rules were benefiting only cartels of select players.
Giving two examples, he said he did away with application of ‘war premium insurance’ that was an unnecessary add-on insurance cost that should apply only in case of closure of the straits of Hormuz or India moved its forces to Pakistani borders which was not the case at present. This would provide a saving of about Rs450 million annually.
Likewise, four contractors were designing PSO contracts for a specific product of petrol involving additives like oxygenate that was not required in Pakistan.
He said he had removed the condition that would provide a saving of about 15 paisa per litre of petrol and Rs600 million per annum.
He said Pakistan imported low quality 87Ron petrol and paying extra premium on that despite the fact that better quality 91Ron petrol was available cheaper and more firms were ready to supply without premium.
ICIBL services: LAHORE, Nov 27: Invest Capital Investment Bank Ltd (ICIBL) has planned to start car financing as well as leasing services for small and medium enterprises.
Talking to journalists, banks CEO Khawaj Naveed said on Tuesday that the present management of the bank had successfully brought ICIBL back to growth track.
In 2010 and 2011 respectively, the bank had declared Rs2.69, and Rs1.53 EPS losses. It managed to declare 0.03 paisa EPS during the last quarter of 2012.
Mr Naveed said that Zahidjee Group had acquired the major shareholdings and management control of the bank from July 2011 with 56.80pc shareholdings.

Resume: Asim Textiles shares trading restored


MOHAMMED SALEEM MANSOORI