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Thursday, 6 December 2012

STOCK MARKET UPDATE: 07.12.2012



STOCKS
Karachi Stocks Up 165.82 Points:
KARACHI, Dec 06: At the close of trading, the KSE-100 index was at 16841.52, up 165.82 points.
(Today Market is 45.79 Up@ 12.00pm-Mid Session)

December 6, 2012
 5 TOP GAINERS  &  LOOSERS:

UniLever Pak
Rs 149.89
Bata (Pak)
Rs (50.67)
Unilever Food
Rs 100.00
Indus Dyeing
Rs (22.87)
Island Textile
Rs 52.00
Wyeth Pak
Rs (18.50)
Bhanero Tex
Rs 13.27
National Foods
Rs (9.96)
Al-Ghazi Tractor
Rs 11.00
Millat Tractors
Rs (4.46)

KSE-100 index touches new high at 16,825 points
KARACHI, Dec 6: Bulls charged yet again at the Karachi Stock Exchange on Thursday with the KSE-100 index gaining 148.85 points to close at 16,824.55 points.
Nearing the 17,000 level, the nervous and the savvy investors took a careful step, but retail investors, in particular, seemed in no mood to be restrained.
The market thus, saw across the board buying.
“Without the heavy-weight energy sector, which witnessed little activity, the index rise of nearly 150 points in a day in incredible,” said an analyst.
The turnover rose to 258 million shares on Thursday, from 234 million shares the previous day, while the trading value jumped to Rs6.9bn, from Rs5.6bn on Wednesday.
Market capitalisation edged higher to Rs4.204 trillion, from Rs4.173 trillion.
Foreign investors sold $1.03 million worth equity on Thursday. Among local participants, banks were aggressive buyers of $4.87 million worth share.
Companies offloaded $3.51 million and Mutual Funds stocks valued at $0.9 million.
Analyst Ahsan Mehanti said that the index closed at highest level amid higher volume with investor interest across leading sectors on hopes for rate cut in upcoming SBP policy announcement.
Higher global commodities, higher cement sales data, rising urea and DAP off-take data for November 2012 and improved textile sector valuations on EU export relaxations played a catalyst role in bullish sentiments.
Equity trader Samar Iqbal at Topline Securities stated that another record was set on Thursday as equity prices rose further with rising volumes.
After many months, MCB bank with a gain of 5pc helped index to see new high.
PIA also saw increased activity as investors expect government to pump more money in the loss making company.
Lucky and DG Cement also witnessed fresh buying after remaining dull for last few sessions.
Hasnain Asghar Ali at Escorts Capital raises the slogan: “Records are made to be broken!”
He observed that fresh flows in the banking and fertilizer stocks kept the benchmark on gaining grounds, that was secured by cement and other stocks.
Although volumetric contribution of KSE-100 companies did stay on the lower side, other low priced stocks from almost all the sectors made substantial contribution which helped keep turnover above the 250 million share mark.
The activity, analyst said, provided ample opportunities to the day traders, but analyst called for caution.
In all, 386 stocks were traded on Thursday, with 256 gainers; 115 losers and 15 remaining unchanged.
Unilever Pakistan was the biggest gainer for the day with Rs149.89 added to its price which rose to Rs9953.45. It was followed by Unilever Food up by Rs100 to Rs4,290.
Among biggest losers, Bata (Pak) was down by Rs50.67 to Rs1599 and Indus Dyeing lost Rs22.87 to Rs567.13.
The volume leaders list was dominated by Byco Petroleum, which gained maximum 99 paisa to close at Rs11.66 on a huge turnover of 24m shares. The interest in the petroleum marketing company was triggered by news of Byco joining race to acquire Chevron Pakistan operations.
Fauji Cement was down by 2 paisa to Rs6.80 on 16m shares. The financially mired in woes, national airline PIA saw its stock price hit the ‘upper circuit’ by gain of Re1 to Rs3.58 on 14m shares; PTCL was up 29 paisa to Rs17.30 on 8m shares; Lotte Pak PTA was up by 10 paisa to Rs7.33 on 8m shares; Nishat Mills rose by 88 paisa to Rs65.10 on 7m shares; Jah.Sidd.Co declined by 22 paisa to Rs18.55 on 7m shares and some investors saw value in laggard Nimir Industrial Chemicals, which pushed its stock price higher by 59 paisa to Rs4.27 on 6m shares.
KSE hits third straight record high: KARACHI: Pakistan's apex bourse Thursday hit a record high for the third straight session, driven by a rise in cement and bank shares.
The Karachi Stock Exchange's (KSE) benchmark 100-share index surged as high as 16,844.21 in intraday trading. It closed at 16,824.55, up 0.89 percent or 148.85 points.
The market has hit record highs in seven of the last eight sessions, and was up more than 25 percent since mid-June.
Fauji Bin Qsim rose 4.08 percent, or 1.49 rupee, to 37.99 per share, while Lucky Cement was up 2.99 percent, or 4.30 rupees, to 148.00 per share.
Byco Petroleum surged 9.37 percent, or one rupee, to 11.67 per share.
The market also found support from expectations that the State Bank of Pakistan will cut its discount rate this week after government data showed inflation under control. (Reuters)
SECP registers 334 more companies
ISLAMABAD, Dec 6: The Securities and Exchange Commission of Pakistan (SECP) witnessed a growth of 35 per cent in registration of companies during November, over corresponding month of 2011, in an indication of growing trend of corporatisation.
The SECP registered 334 companies during October, raising the total corporate portfolio as on Nov 30 to 63,226 companies.
The authorised capital and paid-up capital of these companies, registered in November 2012 was Rs1.75bn and Rs526m respectively.
The increasing trend in new incorporation was evident from the registration figures since July 2012 and 315, 274, 244 and 320 companies were enrolled during months of July, August, September and October, respectively.
The breakdown of the new incorporations during the month was 311 private companies, 16 single-member companies, four non-profit associations, two foreign companies (one each from Saudi Arabia and US) and one public unlisted company.
The corporate growth is a positive sign and reflects expansion of documented, formal and structured corporate sector which results into more business opportunities and development of the economy.
The increasing trend in registration of companies has been made possible due to the SECP’s pro-registration facilitation mechanism. Almost 60 per cent of new registration is taking place using online services.
Foreign investment by nationals from Bangladesh, the Netherlands, Turkey, Canada and the UK has been witnessed in four new local companies.
The companies are from education, power generation, software development and services sectors.
In November, the services got the lead where 55 new incorporations were made, followed by trading with 49 companies, tourism with 35, information technology with 32, construction with 20,
communications with 16, power generation with 13, corporate agricultural farming with 12 and transport with 11 companies.
The highest incorporation was witnessed at the Company Registration Office (CRO), Lahore where 113 companies were registered in November. It is followed by CROs in Karachi and Islamabad, registering 91 and 81 companies respectively.
Company news:
Byco Petroleum eyes Chevron: KARACHI, Dec 6: Byco Petroleum Limited (Byco) joins the race to acquire Pakistan operations of Chevron Pakistan Limited (formerly Caltex Oil Pakistan Limited). Attock Petroleum Limited (APL) and Nishat Group have already started due diligence for the acquisition.
The Pakistani companies are attempting to buy Chevron’s downstream fuel assets in Pakistan and Egypt as Chevron Corporation headquartered in San Ramon California was believed to have decided to walk out of Egypt, Pakistan and Australia in March this year.
Downstream assets consist of refining, marketing and retail sales outlets.
Byco did not release a notice at the Karachi Stock Exchange, which could show its interest in buying out Chevron. But traders said the word was doing the rounds in the market. Analyst, Syed Abid Ali at Arif Habib Limited also quoted his sources as saying that Byco had jumped on the bandwagon.
The analyst noted that Byco was a relatively new entrant into the oil marketing business as its operations started in 2007.
The latest annual accounts of the company showed a network of 219 retail outlet.
“Amalgamation with Chevron’s 522 retail outlets should give Byco increased market penetration,” said the analyst and added that it should strengthen its vertical integration as the company already owns a 30,000 barrels per day (bpd) refinery and the group has recently commissioned another 120,000 bpd refinery, which would take the accumulated capacity to 150,000 bpd.
“With this aggressive growth in refining sector, further expansion into marketing should yield operational efficiency, greater market penetration and help the company to lessen the intensity of circular debt from its refining segment,” analyst at Arif Habib Limited wrote in his Thursday research note.

PIA inks accord on energy conservation: KARACHI, Dec 6: Karachi Electric Supply Company (KESC) and Pakistan International Airlines (PIA) on Thursday signed a Memorandum of Understanding (MoU) for implementation of efficient practices in energy conservation at national flag carrier offices and installations.
The MoU was singed by KESC’s CEO Tabish Gauhar and Captain Junaid Younus, PIA managing director on behalf of their respective organisations.
The KESC chief said that his organisation would provide all possible technical assistance and support to PIA to ensure early implementation of efficiency and energy conservation programme.
He further stated that as per KESC’s initial energy audit of PIA’s head offices and training centre facilities, the national flag carrier is estimated to save around Rs30m per annum only through successful implementation of energy conservation initiatives in these two locations.
Capt Junaid Younus, PIA MD, said that the two organisations would work in close collaboration through a joint task team and try to save energy by adopting green efficiency measures.
Under the terms of the MoU, PIA would ensure usage of energy efficient appliances at its existing installations and offices while construction of any new installations would be in adherence to the green efficiency building codes.
Similarly, KESC would also be conducting periodical energy audits and reviews of PIA offices, installations.
Cement industry facing coal shortage: KARACHI, Dec 6: The cement industry is facing shortage of raw material for past four days as truck owners have stopped picking up coal consignments for factories from Port Qasim while observing a strike against incidents of theft and extortion.
The supplies of coal and various raw material essential for cement production has become irregular which may hurt production and affect supplies to retail market in the coming days.
The cement industry alone consumes around 4.5 million tons of coal as raw material or alternative fuel annually and approximately 14,000-15000 tons of coal is transported daily from Port Qasim to different factories in the country, including Punjab and KPK.
The All-Pakistan Goods Transports Owners Association has intimated cement factories their limitations of providing raw material to cement manufacturers due to their protest campaign.
They said that the motorway police had imposed an impractical restriction on truck owners that could not be materialised as far as cost and benefit ratio is concerned.
The truck owners said that the motorway police had imposed load restriction of 58.500 tons, including 28 ton weight of truck itself, which would ultimately increase manifold the transportation charges per ton of coal.
They rejected the move as would immensely increase fares that would translate into increased cost of production for cement producers.
Truck owners demanded of the government to rationalise the load limit on trucks with respect to cost of fuel and labour, adding the challan on trucks drivers should be stopped immediately.
The All-Pakistan Cement Manufacturers Association (APCMA), in a statement, demanded of the government to resolve the issues of goods carrier at the earliest so that supplies are regularised to continue production of cement in factories uninterrupted.
The APCMA spokesman said if the government ignores the issue, the situation will badly hit the whole cement sector.
The interruption in production would disturb the cycle of cement supplies in the country, and the whole construction industry would suffer due to shortage of cement.


MOHAMMED SALEEM MANSOORI

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