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Tuesday, 4 December 2012

STOCK MARKET UPDATE: 05.12.2012



STOCKS
Karachi Stocks Up 107.49 Points:
KARACHI, Dec 04: At the close of trading, the KSE-100 index was at 16645.47, up 107.49 points.
 (Today Market is 29.10 Down@ 12.10 pm)

December 4, 2012
 5 TOP GAINERS  &  LOOSERS:

Nestle Pakistan
Rs 221.15
Unilever Pak
Rs (190.96)
Island Textile
Rs 41.27
Bata Pak
Rs (10.33)
Colgate Palmolive
Rs 35.00
Millat Tractors
Rs (6.58)
Indus Dyeing
Rs 10.00
Pak Gum & Chem
Rs (4.27)
Allawasaya Textile
Rs 9.47
Faisal Spinning
Rs (4.10)
Stocks gain 112 points at 16,650
KARACHI, Dec 4: Stocks hit a fresh record high on Tuesday as institutions took new positions in blue chips amid expectations in a cut in the State Bank of Pakistan’s key policy rate when it meets this month to unveil its monetary policy, dealers said.The Karachi Stock Exchange (KSE) 100-share index ended 0.68 per cent, or 112.17 points, to record high of 16,650.15 points.
Turnover decreased slightly to 193.05 million shares, compared with 195.59 million traded on Monday, 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 Rs4.9bn from the previous day’s value of Rs5.37bn but market capitalisation rose to Rs4.17 trillion, compared with Monday’s Rs4.13tr.
“Led by hi cap stocks, Karachi bourse saw new record high. Big market cap stocks, like OGDC, PPL, MCB, gained due to active institutional support.
Retail investors were seen active in JSCL, MLCF and KESC.
Low inflation for November increased expectation of other policy rate cut to force investors to take new positions,” said Samar Iqbal, a dealer at Topline Securities Ltd.
Consumer price index for November stood at 6.93 per cent year on year, down 0.39 per cent, month on month, depicting a deflationary trend, which has raised hopes that the central bank will continue to loosen its monetary policy when it meets this month.“Fresh flows in oil and gas marketing and exploration stocks led the benchmark on the record making track, thus keeping the low volume led adjustment away for the day, gains did found follow-up mainly in the value stocks, thus allowing the index to maintain triple digit gains on closing bell,” said Hasnain Asghar Ali from Escorts Capital Ltd.
Heavyweight Oil and Gas Development Co Ltd gained Rs3.50 to Rs190.16 while MCB Bank rose Rs3.08 to Rs192.75.
The biggest gainer was Nestle Pakistan which rose Rs221.15 to Rs4,644,15, followed by Island Textile which ended Rs41.27 higher at Rs1,040.
Unilever Pakistan witnessed the biggest loss for the day as it shed Rs130.96 to Rs9,805 followed by Bata Pakistan which shed Rs10.33 to close at Rs1,649.67.
Foreign investors bought equities in the net sum of $1.457 million, compared with a net outflow of $1.62 million on Monday.
The KSE-30 index ended 0.75 per cent, or 100.54 points, higher at 13,487.64 and out of the 372 companies traded, the value of 208 increased, 139 decreased while 24 remained unchanged.
Among the 10-top traded stocks, Jahangir Siddiqui Co Ltd gained 91 paisa to Rs18.47 on 23.31m shares, Maple leaf rose 8 paisa to Rs14.52 on 19.68m shares but KESC shed 24 paisa to Rs6.66 on 14m shares.
Fauji Cement ended unchanged at Rs6.91 on 9.35m shares, Pakelektron gained 98 paisa to Rs9.07 on 7.63m shares and SuiNorth rose 81 paisa to Rs24.94 on 5.62m shares.
DG Khan Cement ended 33 paisa higher at Rs54.10 on 5.54m shares, Engo gained 90 paisa to Rs98.23 on 5.22m shares and Azgard Nine closed 13 paisa higher at Rs8.61 on 4.13m shares. Pervaiz Ahmed ended 28 paisa higher at Rs3.44 on 3.65m shares.
Karachi stocks scale new peak: KARACHI: Stocks hit a record high for the fifth time in six sessions on Tuesday, supported by expectations that the central bank will ease rates later this week.
The Karachi Stock Exchange's (KSE) benchmark 100-share index surged as high as 16,675.94 in intraday trading.
It closed at 16,650.15, up 0.68 percent or 112.17 points.
Jahangir Sidiqui rose 5.69 percent, or one rupee, to 18.56 per share, while D.G. Khan Cement was up 0.07 percent, or 0.4 rupees, to 53.81 per share.
Maple Leaf Cement fell 0.14 percent, or 0.02 rupees, to 14.42 per share.
The market found support from expectations that the State Bank of Pakistan will cut its discount rate this week after government data showed inflation under control.
The consumer price index rose a smaller-than-expected 6.93 percent in November compared to a year earlier. (Reuters)

SECP detectsinsider trading
ISLAMABAD, Dec 4: The Securities and Exchange Commission of Pakistan (SECP) has uncovered yet another case of insider trading at the Karachi Stock Exchange (KSE).
The SECP has issued two orders for insider trading against Pakistan Petroleum Provident Fund Trust Company Limited (PPPFTCL) and one of the employees of PPL.
The regulator has imposed a cumulative penalty of Rs1.5m on account of insider trading.
“It is part of stringent surveillance practices to cut unfair market practices and to bring transparency in the market,” said an official of the SECP.
The case was traced during a routine check of the market activity after the closing of trade by SECP officials.
“Like earlier cases, this case of insider trading was unearthed on speculative evidence that was further probed,” the SECP official informed.
The Pakistan Petroleum Provident Fund Trust Company (Pvt.) Limited is a private limited company which manages funds of the employees of the PPL.
The SECP order said that trading data of Karachi Stock Exchange from Aug 7 to Aug 9 transpired that Pakistan Petroleum Limited Senior Provident Fund managed by the trust bought 662,500 shares of the PPL just few days prior to the announcement of financial results of the PPL for the year ended June 30.
The matter was taken up with PPL and show-cause notices were issued to the trust and employees of PPL on suspected insider trading in the scrip of PPL.
The review of documents, provided by the respondents, revealed that the investment committee of the trust approved and recommended buying of PPL shares to the trustees of the Senior Provident Fund which gave its final approval in the said investment in the shares of PPL.
The SECP enquiry established that one member of the Investment Committee of PPPFTCL by virtue of being head of the finance department of PPL who is the General Manager Finance (Chief Financial Officer), was an insider person.
“Due to his position in PPL, the said official was in possession of material information regarding financial results and the performance of the company,” the SECP official said, adding that the case of insider trading against the PPPFTCL and the employee of PPL was established on the basis of preponderance of evidence and material on record.
The commission vide orders dated Nov 30 charged CFO with illegally passing on and disclosing of inside information about the impending financial results of the PPL to the trust which traded on that confidential information unlawfully. The official said that as the market is growing there is need for higher degree of monitoring to maintain ethical practices in the stock market.
Company news:
OGDC, Parco raise LPG price: LAHORE, Dec 4: The state owned OGDC and Pak-Arab Refinery raised their LPG prices to match the Contract Price (CP) of $974 per ton for December after months of keeping their prices below Saudi Aramco CP.
Parco increased its base stock price from Rs93,500 to Rs93,700 per ton whereas OGDC increased its base stock price from Rs87,000 to Rs93,685 per ton with effect from Dec 3.
Despite the nominal increase in producer price, retail prices have jumped by as much as Rs8,000 per ton following shutdown of JJVL’s facility which met with a fire accident last week.
“Temporary suspension of supplies from JJVL which accounts for 25 per cent of country’s LPG production has created a severe shortage in the market,” said Belal Jabbar the spokesman for the LPG Association of Pakistan.
Prices of domestic and commercial cylinders have arisen from Rs1,610 to Rs1,700 and Rs6,220 to Rs6,583 respectively “In order to cater to this shortage JJVL and other companies are importing approximately 7000 tons of LPG to ensure ample availability during the month of December.
LPG marketing companies are cognizant of their responsibility and are working with their distributors to address the shortage” said Belal.
Currently retail prices are as follows in different parts of the country; Rs140 per kg in Sindh and Balochistan, Rs145 per kg in Punjab, Rs150 per kg in AJK and Khyber Pakhtunkhwa and Rs155 pr kg in Northern Areas.

MOHAMMED SALEEM MANSOORI

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