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Sunday, 17 February 2013

STOCK MARKET UPDATE: 18.02.2013



STOCKS
Karachi Stocks Up 48.01 Points:
KARACHI, Feb 15: At the close of trading, the KSE-100 index was at 17813.83, up 48.01 points. 
 (Today Market is 92.22 Up@ 12.15 pm)

February 15, 2013
 5 TOP GAINERS  &  LOOSERS:

Sanofi Aventis
Rs 16.68
Unilever Pak
Rs (80.00)
National Foods
Rs 10.33
Indus Dyeing
Rs (27.23)
Pak Services
Rs 8.67
Philip Morris
Rs (9.66)
Indus Motor Co
Rs 7.91
Attock Petroleum
Rs (4.94)
Sunrays Textile
Rs 7.80
PICT
Rs (4.63)

KSE 100-index rises to 17,797
KARACHI, Feb 15: The heavy-weight Oil & Gas Development Company (OGDC) demonstrated its power in the benchmark KSE-100 index on Friday. Although the index moved further up by 31.40 points to close at record 17,797.22 points, the credit went entirely to a giant leap in the price of OGDC stock.
On account of its heaviest weightage in the benchmark, a single rupee rise or fall in the OGDC stock can move the index by around 18 points. On Friday, the OGDC stock closed at a heavy gain of Rs4.26, thus contributing over 70 points to the index.
But for the strength of the oil and gas heavyweight stock, which settled at its new peak of Rs208.30, the KSE-100 index would have ended in the red.
Hasnain Asghar Ali at Escorts Capital stated that the political noise and tense border news flow forced the index to undergo an intra-day technical correction. Friday being the last trading session of the week, investors avoided aggressive buying, thus keeping the benchmark to oscillate within a narrow range.
The cement and textile stocks witnessed reshuffling during early hours, as the reports regarding construction of the tallest building of the world in Karachi by local and international construction group fuelled the rise in prices of front line stocks in the cement sector.
Equity Dealer, Samar Iqbal at Topline Securities commented that the local bourse continued its rally to close at yet another high. PTCL closed at its upper circuit as it continued to rally for the second day after its result announcement. However, investors booked profit in Engro Corporation after its full year results announcement.
Foreign inflows amounted to $1.84 million on Friday, compared with net inflow of $4.09 the previous day.
The total equity purchases by overseas investors during the current month thus stood at $12.55 million. In Jan net buying of foreigners amounted to $15.42m.
Marked capitalisation of KSE increased to Rs4.461 trillion, from Rs4.446tr on Thursday. The overpowering weight of the energy stocks was also evident in the gainers and losers list.
Despite the rise in benchmark, 185 stocks were seen to have closed in the minus columns, way ahead of the 137 shares in the plus.
Turnover declined to 263 million shares on Friday, from 313 million shares the earlier day and the trading value rose to Rs7.064 billion, from Rs6.408 billion, on account of contribution by high-valued energy, fertiliser and cement stocks on Friday.
The biggest gainers for the day were Sanofi-Aventis Pak, up by Rs16.68 to Rs351.25, followed by National Foods higher by Rs10.33 to Rs334.38. The major losers were UniLever Pak down by Rs80 to Rs10,300 and Indus Dyeing lower by Rs27.23 to Rs519.50.
Among the ten-top active scrips, PTCL again saw the highest volume of 29m shares, up by 85 paisa to Rs21.95. The next three volume leaders included Telecard Limited lower by 11 paisa to Rs5.49 on 20m shares, Wateen Telecom lost 14 paisa to Rs3.84 on 15m shares and WorldCall Telecom eased by 20 paisa to Rs3.55 on 14m shares.
Engro Corporation which came up with its results announcements on Friday saw the scrip shed 84 paisa to Rs94.44 on 12m shares.
Pace (Pakistan) edged higher by 12 paisa to Rs3.93 on 12m shares, Jah Sidd Co declined by 15 paisa to Rs17.77 on 11m shares, NIB Bank decreased by 11 paisa to Rs2.73 on 11m shares, TRG Pakistan added 8 paisa to Rs8.29 on 10m shares and Fauji Cement shed 3 paisa to Rs7.99 on 9m shares.
Company News:
Engro profit tumbles: KARACHI, Feb 15: Engro Corporation announced profit after tax (PAT) at Rs1.3 billion for the year 2012, representing earning per share (eps) at Rs2.61. The earnings were 83 per cent lower than earlier year’s PAT at Rs8.1billion and eps at Rs15.77.
The Board, which announced the results on Friday, did not declare a payout and none was expected by the market. The price of Engro stock fell by 84 paisa to Rs94.44 on Friday, with trading seen in 12 million shares.
On account of adverse operational environment faced by the company’s flag ship, the urea business continued to negatively affect company’s bottom-line, analysts at stock brokerage Topline Securities commented.
However, loss of Rs5.70 per share from Engro fertiliser was partially offset by Rs4.5 per share earnings contributed by the key subsidiary, Engro Foods.
Engro Corporation’s revenue grew by 9 per cent over the earlier year to Rs125.2bn in 2012, mainly driven by 35 per cent growth in sales of Engro Foods, which accounted for almost a third of the conglomerate’s sales in CY12, compared to 26 percent
revenue contribution the previous year.

The decline in urea sales was on account of non-availability of gas from Sui Northern Gas pipelines and supply influx of subsidized imported urea.
Analysts at BMA Capital Management affirmed that the Engro Corporation results were above expectations, primarily because the company booked a one time gain on reversal of liability on disposal of discontinued operations, amounting to Rs252 million.
The major reason for steep decline in Engro Corporation earnings was attributed to 28 per cent increase in finance costs to Rs15.8bn, 68 per cent of which were attributable to Engro Fertiliser.
The fertiliser subsidiary could not operate its new highly leveraged plant for over eight months in CY12, which led to its operating earnings falling drastically short of financial charges.
The fourth quarter (4QCY12) marked a turnaround in the company’s profitability where Engro Corporation earned Rs1.8 billion, swinging the bottom-line back into profitability from a loss of Rs443 million in the nine months of CY12.
MOHAMMED SALEEM MANSOORI

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