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Monday, 10 December 2012

STOCK MARKET UPDATE: 11.12.2012



STOCKS
Karachi Stocks Down 20.37 Points:
KARACHI, Dec 10: At the close of trading, the KSE-100 index was at 16787.54, down 20.37 points. 
 (Today Market is 34.23 Up@ 11.24am)

December 10, 2012
 5 TOP GAINERS  &  LOOSERS:

Nestle Pakistan
Rs 40.00
Bata (Pak)
Rs (4.99)
Rafhan Maize Pro
Rs 40.00
Pak Gum & Chem
Rs (4.56)
Colgate Palmolive
Rs 32.91
Service Ind.
Rs (2.00)
Millat Tractors
Rs 20.26
AKD Capital Ltd.
Rs (1.99)
Pak Int. Con
Rs 9.84
Quetta Textile
Rs (1.90)


Stocks shed 20 points on economic uncertainty
KARACHI, Dec 10: Stocks ended slightly lower on Monday and cautious investors stood on the sidelines as the market was hovering around its all-time high and on economic uncertainty, dealers said.
The KSE 100-share index ended 0.12 per cent, or 20.37 points, lower to 16,787.54 points. It made an all-time high at 16,903.98 points on Friday but dealers said profit-taking will be witnessed before the index can comfortably trade above those levels.
Turnover also decreased to 189.1 million shares, compared with 313.43m shares traded on Friday. Trading value fell by Rs2.3 billion rupees to Rs4.06 billion from the previous trading session’s value of Rs6.34bn.
Market capitalisation eased to Rs4.21 trillion from Rs4.22tr.
Stocks closed bearish on institutional profit-taking in overbought stocks. Trade remained in narrow range amid profit taking in stocks across the board,” said Ahsan Mehanti from Arif Habib Ltd.
Selling was witnessed in the energy and cement sectors, except for in Maple Leaf Cement, which had performed in the previous few trading sessions.
“Selling pressure was witnessed in the second half as delay in announcement of monetary policy as well as the upcoming talks with IMF added to the uncertainty over the direction of the policy rate,” said Raza Jafri, head of research at AKD Securities Ltd.
According to reports, International Monetary Fund officials are expected to come to Islamabad later this month to hold talks on a new economic stabilisation programme.
IMF in its latest report said that Pakistan’s central bank’s monetary policy should be more focused to contain inflation and external risks.
“The transport strike also added to the selling pressure as it has caused a bottleneck for moving goods towards the north of the city and dampened the rally witnessed in the previous few sessions,” said Ahfaz Mustafa, director at Ismail Iqbal Securities Ltd.
Foreign investors however bought shares worth a net $1.12m on Monday, compared with $3.04m the previous trading session, bringing the total for the month to a net inflow of $1.95m. Mutual fund sold shares worth a net $4.65m but that was countered by buying by individuals of a net $4.73m.
The biggest gainer was Nestle Pakistan which rose Rs40 to Rs4,840, followed by Rafhan Maize which also ended Rs40 higher at Rs3,850.
Bata Pakistan witnessed the biggest loss for the day as it shed Rs4.99 to Rs1,610 followed by Pak Gum & Chemical, which shed Rs4.56 to close at Rs168.54.
The KSE-30 index ended 0.16pc, or 21.14 points, lower at 13,600.07 and out of the 357 companies traded, the value of 140 increased, 197 decreased while 20 remained unchanged.
Among the 10-top traded stocks, Maple Leaf Cement gained 48 paisa to Rs28.41 on turnover of 27.41m shares, Lotte PakPTA fell 25 paisa to Rs7.94 on 16.89m shares and Fauji Cement shed 15 paisa to Rs6.58 on 12.59m shares.
Sui North Gas ended Rs1.27 lower at Rs24.25 on 11.8m shares and KESC gained 16 paisa to Rs6.77 on 11.22m shares.
Jahangir Siddiqui Co Ltd ended higher by 18 paisa at Rs17.83 on 7.07m shares, Askari Bank rose 30 paisa to Rs17.07 on 5.8m shares but National Bank of Pakistan ended Rs1.27 lower at Rs49.30 on 5.09m shares.
Byco Petroleum fell 9 paisa to Rs11.18 on 4.82m shares and Azgard Nine also closed 26 paisa lower at Rs8.63 on 3.31m shares.
3 companies listed on KSE in 2012
KARACHI, Dec 10: The stock market saw only three Initial Public Offerings (IPOs) in the year 2012. Since no other companies are seen to be ‘in process of formal listing’ or ‘provisionally listed’ on the KSE quotation sheet, the number appears to be final that could run up to the end of the year.The companies that came up for listing during the year included:
Next Capital with offer of 10 million shares, valued at Rs100 million; TPL Tracker 30 million shares of Rs300 million and Aisha Textile offering of 10 million shares valued at Rs100 million – all shares at the par value of Rs10 each.
Analyst at brokerage Topline Securities mentioned that the current low level of listing was seen after six years; the number also compared unfavourably with the issues in the last 10 years.
For most market watchers the trend appears to defy logic, because for all of the current year the Karachi Stock Exchange has performed exceedingly well. To-date it has gained 48 per cent (38 per cent in dollar terms), outperforming all emerging and cash-rich markets of the world. So why did the corporates in need of cash avoid the capital markets?
“The reduced demand to raise capital from the market was on account of slowdown in economic activity,” say analysts.
Economists recall that in the last five years, average GDP grew by 3 per cent while investment to GDP slumped to 12.5 per cent in FY12. All of which pointed to slowdown in economic activity that resulted in slowdown in demand for fresh cash for industries.
During the outgoing year 2012, a total of RsRs500 million ($5m) were offered to general public, High-Net-Worth Individuals (HNWI) and local and foreign institutions. The figure comes up to just about one-tenth of the new stock offerings of Rs4.8 billion ($56m) the previous year.
The stock offer to the public was in the sum of Rs500 million ($5m). HNWI and local/foreign institutions were offered Rs275 million ($3m) through private placement and book building.
Out of the three incoming issues, Next Capital related to financial services; the offer was undersubscribed. TPL was technology related and was oversubscribed by 1.2 times, while Aisha Steel was significantly oversubscribed by 2.7 times.
But the new listings at the Pakistan’s bourse had started to dry up in 2011, when in spite of the market out performance of 10 per cent among international equity markets only four new companies had entered the capital markets.
Market is however confident of the revival of IPOs. “Corporate planning for listing at the stock exchange takes time and we may see improvement in IPOs in 2013 as issuers may yet decide to seize the opportunity of booming market to mobilize funds”, say analysts.
Karachi stocks steady near 16,800 points: KARACHI: Stocks steadied near 16,800 points on Monday, ending a four session streak of record highs, as traders awaited this week's central bank decision on monetary policy, dealers said.
The Karachi Stock Exchange's (KSE) benchmark 100-index closed at 16,787.54 points, down 0.12 percent or 20.37 points.
The market hit a record high of 16,903.46 during intraday trading on Friday.
The market has found support from expectations that the State Bank of Pakistan will cut its discount rate this week after government data showed inflation under control.
Fauji Cement fell 2.08 percent, or 0.14 rupee, to 6.59 per share, while National Bank dropped 2.12 percent, or 1.07 rupees, to 49.50 per share.
Stocks that rose included Maple Leaf Cement, up 4.39 percent to 14.02 per share, and Askari Bank, which gained 1.97 percent to 17.10 per share. (Reuters)
MOHAMMED SALEEM MANSOORI

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