STOCK MARKET UPDATE:14.02.2013

STOCKS

Karachi Stocks Up 37.19 Points:
KARACHI, Feb 14: The KSE-100 index was at 17733.64, up 37.19 points (@ 11.02 am)

February 13, 2013

 5 TOP GAINERS  &  LOOSERS:

Bata (Pak)	Rs 16.90	Nestle Pakistan Ltd.	Rs (75.00)
National Foods	Rs 14.67	UniLever Pak	Rs (75.00)
Siemens Pakistan	Rs 14.15	Exide (PAK)	Rs (8.56)
Indus Motor Co	Rs 11.15	Pak Gum & Chemical	Rs (5.20)
Colgate Palmolive	Rs 10.00	Fateh Textiles	Rs (5.00)

Stocks add 85 points to overnight gains

KARACHI, Feb 13: Blue-chip Pakistan Telecommunication Co Ltd and Oil and Gas Development Co Ltd (OGDCL) led the country’s main equity market to end on yet another record high on Wednesday and the bull-run is expected to continue amid expectations of strong corporate results due to be announced in the coming days.
PTCL remained in the limelight after it announced its result for the fourth quarter ending Dec 31, 2012 which was higher than the market expectations.
“Fourth quarter CY12 consolidated earnings of Rs9.5 billion were higher than our estimate of Rs6.2bn (EPS: Rs1.22) as the company availed the tax benefit of around Rs3.6bn on the Voluntary Separation Scheme (VSS) expense booked in 3QCY12,” said Ayub Ansari, deputy head of research at AKD Securities Ltd.
The KSE 100-share index ended 0.48 per cent, or 85.05 points, higher at 17,696.45 points. It made a fresh all-time high at 17,737.40 points and an intra day low at 17,611.40 points.
Turnover rose to 291.95 million shares, compared with 236.32 million shares traded on Tuesday and trading value increased to Rs7.12 billion from Rs6.9bn in the previous trading session.
Market capitalisation stood at Rs4.42 trillion from Tuesday’s Rs4.4tr.
“Led by PTCL and OGDCL the benchmark index continued its upward journey. PTCL with 45m shares gained as December quarter earnings were excellent. Some institutional interest in OGDCL helped it crossed Rs200-mark for the first time,” said Samar Iqbal, a dealer at Topline Securities Ltd.
OGDCL ended Rs3.53 higher at Rs202.09.
Sui Northern Gas Pipelines Ltd (SNGPL) also helped the market close in the green zone after it announced its corporate result.
Foreigners remained net buyers as they bought shares worth a net $188,226 on Wednesday, compared with a net buying of $2.08 million on Tuesday, bringing the total net buying for the month at $6.62m.
The total for January stood at net buying of $15.42m. Banks were the biggest sellers with equity worth $3.24 million.
The biggest gainer was Bata Pakistan which ended Rs16.90 higher at Rs41,473.90, followed by National Foods which closed Rs14.67 higher at Rs308.62. Nestle Pakistan Ltd witnessed the biggest loss as it shed Rs75 to Rs4,955, followed by UniLever Pakistan, which ended Rs75 lower at Rs10,275.
The KSE-30 index ended 0.44pc, or 63.40 points, higher at 14,449.55.
Out of the 356 companies traded, the value of 192 increased, 145 decreased while 19 remained unchanged.
The telecom sector along with second and third tier shares once again dominated the 10 most active traded stocks: PTCAL topped the list as it rose 19 paisa to Rs20.10 on turnover of 44.8 million shares, NIB Bank gained 16 paisa to close at Rs2.77 on 16.29m shares and Pakistan International Airline closed 55 paisa higher at Rs5.27 on 15.65m shares.
SNGPL increased Rs1.19 to close at Rs25.46 on 13.38m shares, Telecard Ltd fell 19 paisa to Rs4.65 on 12.82m shares and Fauji Cement shed 8 paisa to Rs8.13 on 11.84m shares.
WorldCall Telecom rose 14 paisa to Rs3.51 on 9.9m shares, Maple Leaf Cement ended 8 paisa lower at Rs17.75 on 9.8m shares but DG Khan Cement closed 80 paisa higher at Rs57.19 on 8.8m shares.
Wateen Telecom Ltd gained 9 paisa to end at Rs3.54 on a volume of 7.27m shares.
Stocks close higher, as KSE 100 Index gains: KARACHI: The stock prices at the local capital market closed higher on Wednesday, led by interest in telecoms and the energy sector.

The Karachi Stock Exchange's (KSE) benchmark100-share index ended 0.48 percent, or 85.05 points, higher at 17,696.45.

Pakistan Telecommunication Corporation Ltd. saw 45 million shares traded as it announced its December quarter earnings, the company's first profit in two years.

Some institutional interest in Oil and Gas Development Company stocks pushed the price of shares in the state-run company above 200 rupees per share for the first time.

Stocks in Sui Northern Gas Company also rallied after it announced positive results, said a dealer.

Pakistan Telecommunication Corporation rose 1.96 percent to 20.30 rupees and Oil & Gas Development Company. gained 1.86 percent to hit 202.25 rupees.

In the currency market, the rupee ended steady at 98.05/98.10 against the dollar, compared to Tuesday's close of 98.06/98.11. The rupee had come under pressure after Pakistan made a $145 million payment to the IMF, dealers said.

Overnight rates in the money market fall to 9 percent compared to Tuesday's close of 9.40 percent. (Reuters)

Disclosure guidelines: ISLAMABAD, Feb 13: The Securities and Exchange of Pakistan (SECP) has issued a notification to specify the manner and form for the disclosure of inside information by the listed companies and by the persons discharging managerial responsibilities in listed companies.The notification issued here on Wednesday under Section 15D of the 1969 Securities and Exchange Ordinance read with section 40B of the 1997 Securities and Exchange Commission of Pakistan Act, will result in clearly defining the roles and responsibilities of the company as well as the person possessing the information.
It also describes the obligation of stock exchanges with respect to dissemination of information so that no person takes undue advantage of the inside information.
Now the commission will be in a better position to prosecute the persons involved in insider trading as the presence of newly-introduced statutory obligation will restrain the persons alleged of insider trading from citing legal justifications for their illegal acts in the presence of clear requirements. It is pertinent to mention here that dissemination of material information by the listed companies through the stock exchanges is also a requirement of listing regulations.
The said provision of the 1969 Ordinance states the obligations of persons including listed companies, persons who possess inside information, the persons discharging managerial responsibilities in listed companies with respect to discloser of information and persons associated with the persons discharging managerial responsibilities in a listed company.
Company News:
PSO, PNSC stopped from executing contract: KARACHI, Feb 13: The Sindh High Court on Wednesday restrained the managing director of the Pakistan State Oil and chairman of the Pakistan National Shipping Company (PNSC) from executing the Contract of Affreightment till further orders.
A division bench, headed by Justice Maqbool Baqar, gave this direction on the petition of a private firm, Cargo Channel, against the contract between the PSO and PNSC without inviting open bids as per law, rules and regulations.
The PSO MD and PNSC chairman have already been issued contempt notices by the same bench in an application of the Transparency International-Pakistan for awarding contract of affreightment to the PNSC despite a restraining order passed by the court on Jan 28.
The court had issued a restraining order to the PSO from entrusting the contract of affreightment to any party without inviting competitive bids, in violation of Rule 4 (2) of the Public Procurement Rules, 2004.
Cargo Channel submitted that the PSO had entered into an unlawful and exclusive ‘Contract of Affreightment’ with the PNSC on Oct 5, 2012, for importation of PSO products without inviting competitive bids, in violation of Rule 4 (2) of the Public Procurement Rules, 2004, and Public Procurement Regulatory Authority (PPRA) Ordinance, 2002.
The petitioner’s counsel submitted that the agreement between PSO and PNSC was to come into effect on Jan 1, 2013 and the shipping company was to arrange shipment initially for about three million tons petroleum products yearly through its ships.
He stated that the contract of the Affreightment was bound to result in loss of the Rs6 billion per year to the national exchequer.
He said that PSO agreed to pay PNSC for shipping of cargo to Pakistan from the UAE at the rate of $6.75 per metric ton and $8.25 for cargo being shipped from Kuwait, while the competitive market rates for provision of such shipping services from UAE alone were only $4.25 to $4.50 per metric ton.
The petitioner impleaded secretaries of Petroleum and Natural Resourses and Ports and Shipping, PSO MD and PNSC chief as respondents.
The court was prayed to direct the PSO to award any contract of Affreightment of cargo through competitive bidding in pursuance of laws of Public Procurement Regulatory Authority Ordinance 2002. The petitioner also prayed to declare the contract between the PSO and PNSC illegal and restrain them from giving effect to such a contract.
The bench directed the respondent to file their respective comments before the next date which would be later announced by the court’s office.
In the meantime, the court ordered that the respondents shall not act upon the impugned contract till the next date of hearing.

MOHAMMED SALEEM MANSOORI