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Monday, 28 January 2013

STOCK MARKET UPDATE: 29.01.2013



STOCKS
Karachi Stocks Down 51.37 Points:
KARACHI, Jan 28: At the close of trading, the KSE-100 index was at 17004.99, down 51.37 points. 
(Today Market is 95.18Up@ 11.42 am)

January 24, 2013
Stocks down on profit-taking
KARACHI, Jan 28: Stocks ended lower on Monday after hitting a fresh all time high as investors preferred to book profits above the technical level of 17,000 points, but dealers expect a positive momentum to set in amid the earning season.
Investors also sold shares from the Attock Group of Companies after expected results. The KSE 100-share index ended 0.30 per cent, or 51.37 points, lower at 17,004.99 points. It traded in a broad range as it made an all time high at 17,124.32 and low at 16,984.43.
Turnover decreased to 189.5 million shares, compared with 270.78m shares traded on Thursday and trading value also fell to Rs5.13 billion from Rs6.91bn in the previous trading session.
Market capitalisation marginally lower at Rs4.25 trillion, unchanged from Thursday’s Rs4.26tr.
After attaining yet another historic high the benchmark underwent an intra-day technical adjustment, led by off-loading in E&P stocks, wherein post result squaring stayed the popular reason for bearish spell.
While the short term traders stayed confused over dicey movement mainly in the Attock group stocks, wherein below expectations earnings paired with cash payout on an optimistic side, while some above expectations earnings paired with below expectations cash payouts, relatively longer horizon portfolios well assessed the results and did react accordingly, thus keeping activity in the frontline cement and E&P stocks on higher side, said Hasnain Asghar Ali from Escorts Capital Ltd Pakistan.
Oilfields Ltd (POL) posted an earning per share of Rs23.9 in the first half of 2012-13, down 8 per cent from EPS of Rs26.1 in same period last year. POL ended 95 paisa lower at Rs454.56.
All companies belonging to the Attock Group, such as Attock Refinery and Attock Petroleum all ended lower. “No major surprise in the result of Attock group and Lucky Cement compel investors to book profit above the key 17,000 mark. Profit taking was seen in all major stocks except for Engro Corp and Engro Foods. Engro foods once again closed at its upper limit after excellent result announcement last week,” said Samar Iqbal a dealer at Topline Securities Ltd.
Lucky Cement Company (LUCK) announced an EPS of Rs13.3 in the first half ended Dec 31, as against Rs9.3 in the same period last year, up 42 per cent.
Foreign investors turned into net sellers as they sold shares worth a net $350,603 on Monday after selling a net $758,677.73 on Thursday, bringing the total for this month at a net $5.43m.
Individuals were the major buyers with equity worth $1.74m.
The biggest gainer was Shezan International which ended Rs19.47 higher at Rs429.47, followed by Pakistan International Container Ltd which closed Rs9.65 lower at Rs219.24. Colgate Palmolive witnessed the biggest loss as it shed Rs72.50 to Rs1,377.50, followed by Unilever Pakistan, which ended Rs31.57 lower at Rs9,883.26. The KSE-30 index ended 0.25pc, or 35.33 points, lower at 13,876.33.
Out of the 328 companies traded, the value of 127 increased, 183 decreased while 18 remained unchanged.
The second and third tier companies dominated the 10 most active traded stocks: Fauji Cement topped the list as it ended 32 paisa higher at Rs8.12 on turnover of 50.18 million shares, Maple Leaf Cement fell 36 paisa to Rs17.50 on 17.94m shares and Jahangir Siddiqui Co Ltd shed 52 paisa to Rs16.01 on 11.93m shares.
Lotte Pakpta gained 25 paisa to Rs7.18 on 9.82m shares, Lafarge Pakistan ended unchanged at Rs5.46 on 9.16m shares and Engro Copr rose Rs1.42 to Rs96.80 on 5.56m shares.
Engro Foods closed at its upper circuit after gaining Rs4.38 to Rs105.20 on 5.16m shares, Dewan Cement rose marginally by one paisa to Rs5.25 on 4.93m shares but Byco Petroleum ended 21 paisa lower at Rs14.16 on 4.81m shares.
KESC gained 4 paisa to end at Rs5.88 on 4.04m shares.
Attock Group, Lucky Cement let KSE down: KARACHI: The apex stock market closed lower on Monday after the Attock group and Lucky Cement failed to deliver the high dividends and bonuses that expectant investors had hoped for.
The Karachi Stock Exchange's (KSE) benchmark 100-share index ended 0.30 percent, or 51.37 points, lower at 17,004.99.
Investors booked profits in all major stocks except for Engro Corporation and Engro Foods. But Engro foods once again closed at its upper limit after excellent result announcement last week, said a dealer.
Fauji Cement was up 3.72 percent to 8.09 rupees per share and Engro Foods rose 5 percent to 105.86 rupees per share.
Maple Leaf Cement was down 2.02 percent to 17.50 rupees per share while Byco Petroleum fell 1.11 percent to 14.21 rupees per share. (Reuters)
Company News: KARACHI, Jan 28: Bank Alfalah and Warid Telecom, both owned and operated by the Abu Dhabi Group, have joined hands for their upcoming branchless banking services in Pakistan.
The technological support for this collaboration is being provided by Monet and the pilot testing launch is currently underway as approved by the SBP. The service will offer a range of products to suit the needs of institutions, SMEs and the government.

Big-ticket corporates announce results: KARACHI, Jan 28: As the results reporting season started in right earnest, some of the big ticket corporates came up with financial figures and payouts on Monday.
Lotte Pakistan and National Refinery had released results on Friday and Saturday, respectively (market closed on both days). The Attock Group companies, holding Board meetings in Dubai sent in results earlier in the day on Monday.
Attock Petroleum; Attock Cement and Pakistan Oilfields posted earnings and payouts that displayed profit and dividends, either of which were in line with market expectations.
But most analysts admitted that the numbers did not hold anything that could surprise the market. Among the little traded scrips, International Steel and Mitchell’s’ Fruit farms also pushed forward their earning numbers.
Yet, one of the most eagerly waited result, that of, Lucky Cement was unveiled on Monday.
The cement sector, which had outperformed the market in 2012, was banking on the two biggest companies, D.G. Khan Cement and the Lucky Cement. Here is the synopsis of results released on Monday.
Lucky Cement “outperformed its competition”, claimed the company in a press release. The profit for the half year 2012-13 surged 42.15 per cent to Rs4.29 billion, resulting in earning per share (eps) at Rs13.27, compared to profit at Rs3.02 billion and eps at Rs9.33 in the corresponding period of last year. The company’s net sales improved by 13.90pc to Rs17.511 billion against Rs15.374 billion of the corresponding period last year.
The local sales volume grew by 5.5pc to 1.77 million tons as compared to 1.68 million tons in same period last year. The combined sales revenue of Lucky Cement increased 13.9pc, which was attributed to 21.3pc growth in domestic sales and 3.7pc growth in exports. The financing cost decreased by 61pc.
“To enhance the quality of cement and for capturing new export markets, Lucky Cement plans to replace its existing Chinese origin cement grinding mills located at the Karachi plant with renowned European vertical mills,” the company stated in its release and added that the replacement would reduce cost of production due to more energy efficient operations.
The company is also upgrading its packing machines at the Pezu plant with new European origin Ventomatic Packing Plants. Lucky Cement also completed the acquisition of ICI Pakistan along with its group consortium.
Lucky Cement now holds 56.86pc of equity in ICI Pakistan Limited.
Muhammad Sarfraz Abbasi at Summit Capital commented that three key factors brought out good performance by the company: higher sales because of the higher prices; higher other income and decline in financial charges.
Topline Research noted that the revenue per ton of the company rose by 17pc to Rs6,284 as against Rs5,362 during the same period previous year. While the cost per ton inched up by 8pc.
Attock Petroleum
The PAT declined 3 per cent to Rs2.16bn, translating into eps at Rs31.18 for 1HFY13 as against earnings of Rs2.22bn (EPS of Rs32.08) in the corresponding period last year.
However to the market’s surprise, the company did not announce any cash payout with the result, while there was consensus forecast of a cash payout between Rs17.5 to Rs20 per share. “We believe, potential acquisition of Chevron petroleum marketing affiliates in both Pakistan and Egypt (for which the company is conducting due diligence) is the reason for the no payout”, analysts at Topline Securities said.
Pakistan Oilfields
The company posted PAT of Rs5.7billion (eps: Rs23.94) in 1HFY13 compared to Rs6.2bn (EPS: Rs26.08) same period last year, depicting a decline of 8.2 per cent. In 2QFY13, PAT of the company surged by 14pc YoY to PKR3.1bn. The result was inline with most analysts’ expectations. POL announced interim cash dividend at Rs20 per share, which was higher than forecasts.
The decline in profitability during 1HFY13 was attributed to notable decline in hydrocarbon production, significantly higher exploration charges (4.4x YoY higher) plus lower dividend income from NRL and APL. Net sales of the company stood reduced by 5pc YoY to PKR7.1bn in 1HFY13 on account of lower oil and gas production during the period.
Attock Refinery
The Refinery announced 1HFY13 EPS of Rs37.62, up by impressive 38pc from EPS of Rs27.2 in 1HFY12. The company also announced interim cash dividend of Rs2.5 per share with the results.
Growth in earnings primarily stemmed from better refinery operations, thanks to higher GRMs (Gross Refining Margins) compared to last year. Nauman Khan, analysts said that it was interesting to note that out of EPS of Rs37.62 during 1HFY13, refinery operations contributed EPS of Rs25.4 versus earnings contribution of Rs14.18 per share during the same period last year, up by massive 79pc.
National Refinery
The company announced 1HFY13 EPS at Rs19.6 compared to Rs19.8 in the same period last year, reflecting slippage of 1pc. Gross margins were realized at 3.3pc, against 3.6pc during corresponding period previous year. Gross profit fell by 3pc to Rs2.8bn. Reduced margins in its lube business stood out as the primary culprit behind decline in earnings. Earnings from the business segment recorded profit of Rs1.3bn as against of Rs1.7bn during the corresponding period last year, down 25pc. The decline of 9pc in other income to Rs1.1bn as against Rs1.2bn also left negative impact on the bottomline.
Lotte Pakistan
Lot PTA announced loss of Rs184mn (loss per share Rs0.12) in 2012 compared to profits of Rs4.2bn (Rs2.76 per share) last year. Decline in earnings was primarily attributed to shrinking margins to average $80 per ton in 2012 as against $216 per ton in the same period last year. Subdued international cotton prices, lack of textile demand from developed economies and increasing PTA capacities were the main culprits that pulled down the margins.

MOHAMMED SALEEM MANSOORI

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