STOCK MARKET UPDATE: 22.02.2013

STOCKS

Karachi Stocks Up 125.46 Points:
KARACHI, Feb 20: At the close of trading, the KSE-100 index was at 17943.17, up 125.46 points.

 (Today Market is 25.79 Up@ 11.26 am)

February 22, 2013

 5 TOP GAINERS  &  LOOSERS:

UniLever Pak	Rs 201.40	Bata (Pak)	Rs (30.00)
Colgate Palmolive	Rs 25.00	Indus Dyeing SD	Rs (15.71)
Wyeth Pak Limited	Rs 15.00	National Foods	Rs (9.00)
Sapphire Textile	Rs 11.52	Indus Motor Co	Rs (8.45)
Murree Brewery	Rs 7.16	Attock Petroleum Ltd	Rs (5.13)

KSE 100-index turns choppy

KARACHI, Feb 21: The shares at the stock market slipped on Thursday, with the KSE-100 index down 26.05 points to finish at 17,921.02 points. The resistance level at 18,000 points could not be breached.
Yet the equities pulled back on the KSE on Thursday, mainly in sympathy with the global stock markets. The developed as well as emerging markets tumbled following US Federal Reserve policy meeting that triggered fears of reduced global liquidity, following central bank policy-tightening moves. All major indices including FTSE, Hang Sang, CAC-40 and Mumbai’s BSE-30 dipped by more than 1.5 per cent.
The KSE initially lost 50 points to hit the lowest at 17,897.49 points. But the day’s highest was about the same points over Wednesday’s closing. However, some positive events specific to the local equity market came in for rescue.
The court decision regarding international call rates triggered rally in telecom stocks. Prices in PTC, Telecard and WorldCall stocks rose sharply, while the sector contributed almost half of volume on Thursday.
Also the financial results and payout announcement from PSO, contained the surprise bonus issue at 20 per cent (one share for five held) which helped lift the price of shares as well as limit losses at the market.
However, profit taking was seen in cement and oil stocks; the later retreating in the last half hour, after heavy gains earlier in the session.
Hasnain Asghar at Escorts Capital commented that the political noises on withdrawal of the LG Bill by the government, investors’ uneasiness over the law & order warnings by the interior Minister and unclear situation on the care taker setup together with economic, financial and debt management woes, dampened sentiments.
The decision by the Supreme Court terming LHC decision of stay on incoming revenues as null and void, supported high volumes and gains in telecom stocks.
The KSE-30 market capitalisation based index lost 46.42 points to 14,669.25 points. The turnover increased to 350 million shares on Thursday, from 267 million shares traded the previous day.
However, as much of the volume was generated in low-priced stocks, the trading value receded to Rs8.6 billion, from Rs9.3 billion.
In all 348 stocks came up for trading on Thursday with 172 ending in the minus columns and 155 in plus. Market capitalisation slid to Rs4.465 trillion, from Rs4.472 trillion.
Foreign investors bought a hefty $4 million worth stocks on Thursday, up from net purchases of $1.77 million on Wednesday, bringing the total net buying for the month to $22.44 million. Among locals, companies made net purchases of $2.30 million, while Banks sold $2.27 million and mutual funds $3.38 million worth equity.
The biggest gainers for the day were UniLever Pakistan, up by Rs201.40 to Rs10,560 followed by Colgate Palmolive higher by Rs25 to Rs1,600. Major losses were noted in Bata (Pak) down by Rs30 to Rs1,450 and Indus Dyeing lower by Rs15.71
to Rs433.
Four of the ten-top active issues represented the telecom sector. WorldCall Telecom posted the highest volume of 55m shares, up by 59 paisa to Rs3.70. PTCL was ‘limit up’ by Rs1.08 to Rs22.83 on 42m shares; Telecard Limited also closed at ‘upper circuit’ with addition of Re1 to Rs6.10 on 30m shares.
Jah Sidd Co increased by 58 paisa to Rs18.88 on 33m shares, Maple Leaf Cement was stronger by 73 paisa to Rs18.41 on 29m shares, TRG Pakistan improved by 38 paisa to Rs8.03 on 10m shares, Pace (Pak) was up by 19 paisa to Rs4.09 on 10m shares, Fauji Cement shed 2 paisa to Rs7.84 on 8m shares and NIB Bank edged higher by 5 paisa to Rs2.63 on 7m shares.
KSE tracks a global fall; rupee frail vs USD: KARACHI: Pakistan's stock market closed lower on Thursday after a correction in global stock markets.

The Karachi Stock Exchange's (KSE) benchmark 100-share index ended 0.15 percent, or 26.05 points, lower at 17,921.02.

Telecom stocks like Pakistan Telecommunication Corporation, Telecard Ltd and World Call Telecom rose after a court decision approved recently raised international call rates.

Profit taking was seen in cement and oil stocks, said a dealer.

Pakistan Telecommunication Corporation rose 4.97 percent to 22.83 rupees and World Call Telecom was up 19.61 percent at 3.72 rupees.

The rupee ended weaker at 98.13/98.18 against the dollar, compared to Wednesday's close of 98.04/98.09.

Overnight rates in the money market rose to 8.50 percent from Wednesday close of 7.25 percent. (Reuters)

Company News:

PSO declares bonus issue: KARACHI, Feb 21: Pakistan State Oil Company (PSO) announced financial figures for the 1HFY13, posting profit after tax (PAT) at Rs6.3 billion, translating into earning per share (eps) at Rs30.48.
It represented growth of 37 per cent over PAT at Rs4.6 billon and eps at Rs22.27 recorded in same period last year. The board announced interim cash dividend at Rs2.50 per share along with a surprise bonus issue at 20 per cent (one-for-five).
The payout was warmly greeted by the market as the directors did not ignore shareholders, making circular debt an excuse. The share in PSO made hefty gains of Rs6.72 to Rs243.41 on exceptionally high volume of 6 million shares.
Analysts noted that the gross margins remained stagnant, despite increase in gross profit by 11pc to Rs18.1bn as against Rs16.3bn the same time earlier year. Increased profitability was further supported by 70pc higher other income to Rs2.1bn from Rs1.3bn.
Other factor contributing to bottom-line growth was decline in other operating expense by 6pc to Rs7.3bn as against Rs7.7bn in the previous comparable period. Financial charges increased by 12 per cent to Rs4.5bn, from Rs4bn in 1HFY12.
ICI Pakistan: PAT from continuing operations for the year ended Dec 31, 2012 amounted to Rs893m, lower by 42 per cent over the previous year. Earnings per share (eps) from continuing operations stood at Rs9.67, down by 27 per cent last year.
Net sales declined 2 per cent to Rs34.7 billion, which the company said in a statement on Thursday was due “mainly to lower volumes and prices in the Polyester Business where volumes were dampened due to deteriorating energy crises affecting downstream demand.”
Operating results stood lower by 37 per cent primarily on account of lower PSF volumes and significant reduction in margin over feedstock. The company stated that the results were further dragged down due to extended gas outages in the Polyester and Soda Ash businesses resulting in incremental expenditure on expensive alternate fuel amounting to Rs407 million.
The board of ICI also announced the appointment of Asif Jooma as CEO of the company effective February 25, 2013.
Meezan Bank earns Rs3.5bn profit: KARACHI, Feb 21: Meezan Bank Limited has earned a profit-after-tax of Rs3.5 billion in 2012 compared to Rs3.4 billion recorded last year, a press release issued on Thursday said.
The earnings per share (EPS) increased to Rs3.88 from Rs3.75 for 2011.
The board recommended issue of 11 per cent Bonus Shares for the year 2012. This declaration together with the earlier cash dividend of 15 per cent paid in August 2012 brings the total payout for the year to 26 per cent (2011: 22.5 per cent) and maintains the Bank’s unbroken payout record since its date of listing on the Karachi Stock Exchange.

 

KESC to invest $500m in coal plants: ISLAMABAD, Feb 21: KESC would invest about $500 million for setting up of coal-based power plants, improvement in transmission and distribution systems in Karachi during the next five years, said Tabish Gohar, chairman, KESC board of directors here on Thursday.
A five-member KESC delegation briefed the Minister for Water and Power, Chaudhry Ahmad Mukhtar, on plans to improve power supply situation in Karachi.
Mr Gohar said that the Bin Qasim power plant would be converted on imported and local coal to generate 400MW cheaper electricity with an investment of $300 million.
The conversion plan would take almost 20 months to complete.
The KESC would spend $80 million on conversion of gas-based plants on combined cycle, while $80 million would be spent on smart grid station that would help improvement and transmission system.
The KESC chairman said that due to investment plan, the power system in Karachi would improve, and power thefts and line losses would be checked.
He also briefed the minister on outsourcing of some of its feeders and future plans to meet the electricity requirements.

 

MOHAMMED SALEEM MANSOORI