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Tuesday, 13 November 2012

STOCK MARKET UPDATE:14.11.2012



STOCK:
Karachi Stocks Down 83.96 Points:
KARACHI, Nov 13: At the close of trading, the KSE-100 index was at 16129.72, down 83.96 points.


(Today Market is 26.14 Down @ 11.03 am)

November 13, 2012
5 TOP GAINERS  &  LOOSERS:

Bata Pak
Rs 65.95
Al-Abbas Sugar
Rs (4.95)
Island Textile
Rs 25.64
Shahtaj Sugar
Rs (4.08)
Indus Dyeing
Rs 21.37
MCB Bank
Rs (3.04)
Wyeth Pak
Rs 19.00
Indus Motor Co
Rs (3.03)
PICT
Rs 7.74
Oil & Gas Dev
Rs (3.03)
Stocks lose 88 points on foreign selling
KARACHI, Nov 13: Foreign selling in blue-chip companies pushed stocks lower on Tuesday and cautious investors stayed on the sidelines amid law and order concerns.
The KSE 100-share index ended 0.52 per cent, or 88.70 points lower at 16,129.72 points after making an all-time high at 16,278.00 points on Thursday.
Turnover increased to nearly 160 million shares, compared with 149.41 million shares traded on Monday and trading value also rose to 3.94 billion from Rs3.52 billion in the previous trading session.
But market capitalisation fell to Rs4.02 trillion, compared with Monday’s capitalisation of Rs4.043 trillion.
“Stocks closed lower amid consolidation in blue-chip scrips,” said Ahsan Mehanti from Arif Habib Ltd.
“Profit-taking continued on economic worries despite record home remittances in last month. Security unrest in the city, limited foreign interest and rising political uncertainty played a catalyst role in bearish sentiments at KSE.”
“Karachi market closed in negative for the second session amid fall in global markets and prevailing law and order situation. Major selling was seen in OGDCL (Oil and Gas Development Co Ltd) and MCB Bank.
OGDCL closed Rs3.03 down while MCB Bank lost Rs3.04,” said Samar Iqbal, a dealer at Topline Securities Ltd.
Foreign investors continued their selling as they sold shares worth a net $3.14 million on Tuesday, compared with net selling of $705,021, bringing the total net buying for this month to $18.95 million. But companies were the major buyers with equity worth $1.86 million.
Brokers said there was selling in the energy sector, as OGDCL fell Rs3.03 to Rs186.83, Pakistan Oilfields shed Rs1.06 to Rs423.94 and Pakistan Petroleum Ltd closed Rs1.99 lower at Rs175.03.
There have been security concerns following the numerous killings in Karachi in the previous few days. In fact the Muttahida Qaumi Movement (MQM) and the Awami National Party (ANP) boycotted the Senate session on Tuesday protesting against the rising violence in Karachi.
After a heated debate in upper house, the ANP demanded immediate military operation in Karachi while the MQM demanded imposition of emergency in the city.
Dealers said the market is likely to remain under pressure if the law and order situation further deteriorates.
The market capitalisation based KSE 30-index fell 0.67 per cent, or 88.70 points, to close at 13,181.20 points.
Out of the 320 companies traded, the value of 136 increased, 150 decreased, while 34 remained unchanged.
The biggest gainers and losers were as follows: On the plus side, Bata Pakistan was up by Rs65.95 to Rs1,385.45, followed by Island Textile which was up by Rs25.64 to Rs538.57. On the declining side, Al-Abbas Sugar lost Rs4.95 to Rs96.50 and Shahtaj Sugar Mills decreased by Rs4.08 to Rs77.82.
The list of volume leaders included mainly middle tier shares: Jahangir Siddiqui Co rose 31 paisa to Rs16.45 on 35.78 million shares, Fauji Cement fell 12 paisa to Rs6.52 on 13.07 million shares and Azgard Nine ended 26 paisa lower at Rs7.33 on 9.76 million shares.
Lotte PakPTA gained 7 paisa to Rs7.07 on 8.93 million shares. JS Investments shed 46 paisa to Rs9.13 on 7.03 million shares, and DG Khan Cement ended 48 paisa lower at Rs52.77 on 5.24 million shares.
NIB Bank Ltd ended flat at Rs2.20 on 4.71 million shares, JS Bank Ltd fell 21 paisa to Rs6.24 on 4.48 million shares and Maple Leaf Cement rose 24 paisa to Rs10.34 on 3.64 million shares.
Engro Corp ended 39 paisa higher at Rs92.23 on 3.5 million shares.

Company news:
KESC contracts: KARACHI, Nov 13: The KESC has signed two additional strategic contracts with international vendors for its generation fleet to augment the generation capacity and enhance efficiency of KESC’s Combined Cycle Power Plant at Korangi.
The agreement also ensures provision of OEM maintenance spares for its plants in SITE and Korangi.
The KESC has signed a contract with the Slovakian-based, Istroenergo Group.
The KESC would be converting two open cycle gas turbines at its CCPP-II Korangi, into combined cycle operation.
IEG is the same company which had earlier designed Phase-I of engineering, procurement and construction work of this power plant.
It would now be executing the current, strategically important closing cycle project at a cost of Rs4 billion in a period of 18 months.
The project would add 27MW of electricity generation capacity to the Combined Cycle Power Plant at Korangi, enhancing its total capacity from 220 to 247MWs and at the same time increasing the complex efficiency from 42 to 45 per cent.
Simultaneously, KESC has also signed a five-year Maintenance Spares Supply Agreement (MSA) with OES General Electric Jenbacher for its GEJB gas engines plants at Korangi and SITE areas.
PIA suffered Rs119bn loss last year, SC told: ISLAMABAD: The Supreme Court was informed on Tuesday that the Pakistan International Airlines had suffered a whopping Rs119 billion loss last year alone.
“I cannot say all is right with the PIA as its balance sheet for 2011 shows losses of Rs119bn,” said Raja Bashir, the counsel for the national flag carrier. He was assisted by the airline’s legal adviser Asim Rauf.
A three-judge bench comprising Chief Justice Iftikhar Muhammad Chaudhry, Justice Gulzar Ahmed and Justice Sheikh Azmat Saeed had taken up an application moved by the Transparency International voicing apprehensions over the state of affairs and corruption in the airline.
Citing a newspaper report, the Transparency International requested the chief justice to take notice of a host of issues prevalent in PIA like purchase of aircraft at very high prices and a loss of Rs410 million suffered by the airline because of cancellation of 1,200 flights between August and November last year.
The court ordered that notices be issued to the respondents on similar petitions moved by PML-N’s Secretary General Iqbal Zafar Jhagra and Marvi Memon. They sought an investigation into the affairs of PIA to identify corruption, mismanagement, inefficiency and lack of employment of competent staff.
“It’s a pity that national institutions are being destroyed like anything; already Railways is at the verge of collapse,” the court said and expressed dismay over lack of proper assistance on behalf of PIA to the queries made by the bench.
“It is a miracle if PIA flies on time,” Justice Saeed said.
Justice Ahmed equated the airline with a bottomless pit.
Citing a State Bank report, Advocate Raja Bashir said the ratio of employees per aircraft in PIA was 350, the highest in the world. He said PIA had a fleet of 40 aircraft, but most of them were outdated while two or three were grounded.
However, the counsel said, the current PIA management under chairman Lt-Gen (retd) Asif Hayat Malik was trying to improve the situation and had assured the TI that the airline would strictly observe transparency in future deals.
The court recalled that there was a time when PIA was considered to be one of the best airlines in the world which helped to establish almost 36 famous airlines, including Emirates and Singapore Airlines. “Is there any chance of revival of PIA or it will meet the same fate as Steel Mills,” the court said and asked if any new airline was being launched.
When Asim Rauf denied that PIA had leased international routes to foreign airlines, Justice Saeed cited his personal experience and said he had bought a PIA ticket to go to Istanbul from Lahore but he travelled in the Turkish Airlines.
“There is an agreement between PIA and Turkish Airlines to carry each other’s passengers,” Raja Bashir said but the bench told him that half-truths would not suffice.
Justice Ahmed said international airports were disturbed by delay in arrival and departure of PIA flights and because of this it faced
penalties.

The court had to adjourn the hearing for Dec 4 because PIA’s representatives did not come up with satisfactory answers to the questions raised by the bench.
The court wanted to know about the ratio of passengers travelling by PIA either at reduced rates or free of cost; how many international routes have been closed; why the aircraft are overhauled abroad when PIA is equipped with hangar facilities at the Karachi Airport; whether investments are made in the hotels network owned by PIA and why private local airlines are making profits.
MOHAMMED SALEEM MANSOORI

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