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Sunday, 6 January 2013

STOCK MARKET UPDATE: 07.01.2013



STOCKS
Karachi Stocks Down 141.20 Points:
KARACHI, Jan 07: The KSE-100 index was at 16507.64, down 141.20 points. (Today @ 11.34 am)
January 04, 2013
 5 TOP GAINERS  &  LOOSERS:

Bata Pak
Rs 55.50
Indus Dyeing
Rs (8.78)
PICT
Rs 10.01
Blessed Textile
Rs (6.10)
Exide Pak
Rs 10.00
JDW Sugar
Rs (5.89)
Millat Tractors
Rs 9.83
Javedan Corporation
Rs (4.75)
Pak Services
Rs 7.60
Premier Sugar Mills
Rs (4.69)
Stocks up 60 points, volume slips below 100m
KARACHI, Jan 4: Stocks at the stock market extended the overnight recovery on Friday, with KSE-100 index recording gain of 60.30 points and close at 16,648.84 points.
The activity in the second and third tier stocks shrank as the day traders and punters remained on the sidelines in view of uncertain political situation. Although the gap was filled by the heavy-weight stocks, they were unable to match the previous total turnover of shares.
The volumes dipped below 100 million shares, at 96 million shares, down from Thursday turnover at 102 million shares.
Trading value, however, rose to Rs2.484 billion, from Rs2.425 billion the previous day. The market capitalisation increased to Rs4.173 trillion, from Rs4.158 trillion.
There was all around offloading of equity on Friday with foreign portfolio outflow at $0.64 million. Local players were also on the sell side. Companies sold equity worth $0.53 million; banks $0.30 million; mutual funds $0.93 million while individuals sold shares valued at $0.64 million.
The news flow was generally positive. The country’s liquid foreign exchange reserves rose by $430 million during last week mainly due to arrival of foreign inflows under the Coalition Support Fund (CSF).
According to the State Bank of Pakistan, the country’s total foreign exchange reserves increased to $13.808 billion as on Dec 28, 2012 compared to $13.378 billion a week earlier.
The National Assembly Standing Committee on Commerce on Thursday criticised the ministry for reducing the age limit of used cars import from five to three years.
Ahsan Mehanti at Arif Habib Corporation commented that stocks closed higher led by blue chip scrips amid thin trade. Stronger fertiliser sales data, hopes for early resolution of political issues, higher global commodities, rising local cement prices and textile exports played a catalyst role in bullish sentiments in oversold market amid concerns for pending energy crises.
Equity dealer, Samar Iqbal at Topline Securities said that the volume though two weeks lowest, equity market gained another 60 points amid calmness on political front. Renewed buying interest was also seen in UBL as 3.3mn shares changed hands.
Hasnain Asghar Ali at Escorts Capital said that value buying continued throughout the session mainly in the frontline stocks.
With results season to start next week, high yields and low multiples stocks saw renewed buying. But as political and judicial matters are likely to heat up next week, the day traders opted to stay on the sidelines.
In all 328 stocks came up for trading with 184 in the positive, 131 stocks in negative and 13 remaining unchanged.
The biggest gainer for the day was Bata (Pak) up by Rs55.50 to Rs1297, followed by Pakistan International Container Terminal higher by Rs10.01 to Rs210.30. The major losers were Indus Dyeing down by Rs8.78 to Rs616.22 and Blessed Textile lower by Rs6.10 to Rs115.90.
On the ten most actives list, Byco Petroleum stood on the top with 13m shares up by 41 paisa to Rs13.79. Jah Sidd Co lost 42 paisa to Rs15.34 on 12m shares, Maple Leaf Cement edged higher by 12 paisa to Rs14.48 on 7m shares, Fauji Cement was up by 8 paisa to Rs6.35 on 4m shares, United Bank added 71 paisa to Rs82.52 on 3m shares, KESC was up by 10 paisa to Rs5.58 on 3m shares, Lotte PakPTA slipped by one paisa to Rs7.04 on 3m shares, Colony Mills was down by 30 paisa to Rs4.82 on 3m shares, Fauji Fertiliser Bin Qasim eased by 10 paisa to Rs38.49 on 2m shares and PIA gained 4 paisa to Rs3.85 on 2m shares.
KSE 100-share index ends higher
KARACHI: The Karachi Stock Exchange's (KSE) benchmark 100-share index ended 0.36 percent, or 60.30 points, higher at 16,648.84.
Stocks closed higher on Friday amid renewed buying interest in banking stocks.
 Byco Petroleum was up 3.14 percent to 13.80 per share and United Bank Ltd rose 0.84 percent to 82.50per share.
Fauji Bin Qasim fell 0.23 percent to 38.50 per share while D.G. Khan Cement was down 0.3 percent to52.85 per share.
In the currency market, the rupee ended weaker at 97.42/97.47 against the dollar, compared to Thursday's close of 97.35/97.40.
Overnight rates in the money market rose, ending at 9.25percent compared to Thursday's close of 6.75 percent. (REUTERS)

Equities extend cool welcome to new year
KARACHI, Jan 5: Judging by the performance of the past 10 years, Pakistani equities were expected to herald the New Year with a warm welcome. Although the first week of January has been cool as winter for the stock market, analysts point out that things might improve as temperatures fall on the political front.
In the first week of trading at the Karachi Stock Exchange (from Dec 31, 2012 to Jan 3, 2013), the KSE-100 index saw a pull back by 294 points from 16,940 points to close at 16,649 points on the last trading session on Friday.
In contrast, global equity and commodity markets began on a positive note. The KSE which had gained 49 per cent in 2012, lagged behind. An equity brokerage house which compiled figures of performance by regional markets, showed that except the Pakistan bourse which showed dismal performance, almost all regional markets moved higher in the range of 0.21 per cent for Malaysia to 3.65 per cent for Dubai.
The month of December 2012 had seen a slow down in the KSE’s climb to the cliff to reach 17,000 points. That level was scaled for a brief moment on the last trading day on Monday the Dec 31, 2012. Yet a mid week fall left investors peering ahead as the dust on political front made immediate outlook hazy.
Analysts at brokerage firm Topline Securities wrote in a report: “Analysing previous years, we have observed that equity prices along with volumes increase as fund managers allocate fresh money for stocks.”
The December-end financial results season is around the corner with some mid-tier companies expected to announce financial figures in the second week, starting Monday.
In the last 10-years (2002-12), the benchmark KSE-100 index has yielded an average return of 3 per cent in January. Excluding the great crash following the imposition and lifting of the infamous ‘price floor’ in 2008-09, the average recovery has stood out at 5 per cent in the first month of calendar year.
Interestingly, in 8 out of 10 previous years, market has gained values in January. Furthermore, average traded volumes also jumped by 57 per cent in January as compared to December.
In rupee terms, traded values of stock have soared 40 per cent in January over December in the 10-year period. A chart tracking stock performance in January of 2003 to 2012 shows that going by returns, 2007 proved to be the best with a return of 12 per cent, while 2009 was the worst, yielding negative return of 8 per cent.
In terms of shares traded, 2009 saw the panic selling with volume soaring over December by 274 per cent.
Most market participants marked the triggers for stock price run up in January as the receipt of the Coalition Support Fund and the pattern of corporate results.
While the CSF at $688 million have already arrived to provide the much needed support to the rupee which witnessed decline of 7.6 per cent against the dollar in 2012, key company results mainly those of Fauji Fertiliser; Fauji Bin Qasim and E-Foods, expected to be announced in the last week of January, could be the harbinger of good or bad times ahead.
In spite of 49 per cent gain in 2012, Pakistani stocks still trade at an attractive price-to-earnings (p/e) multiple of 6.8 times with dividend yield at 7 per cent.
Among the few ‘outlook strategies for 2013′ that are handy, BMA Capital says the market is set to provide a fairly decent return of 17pc to reach 19,800 points by 2013.
Taurus Securities sees 2013 as a year of volatility.

Topline Index target is 19,500 for 2013 and Arif Habib Limited states: “Pakistan equities are yet to re-rate given their grossly undemanding valuations. If we adjust prevailing regional discounts to historical levels (average discounts being 5pc-48pc), laced with justified p/e, earnings growth and the target price models, a weighted average index target of 19,991 appears, with a big leap of 3,089 points by 2013-end”. The brokerage expects Pakistani equities to produce total return of 18 per cent in 2013.

MOHAMMED SALEEM MANSOORI

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