STOCK MARKET UPDATE: 13.03.2013

STOCKS

Karachi Stocks Up  350.29 Points:
KARACHI, Mar 12: At the close of trading, the KSE-100 index was at 17,872.65, Up  350.29 points.

 (Today Market is 4.99 Up@ 10.42 am)

March 12, 2013

 5 TOP GAINERS  &  LOOSERS:

Colgate Palmolive	Rs 90.00	Rafhan Maize	Rs (196.45)
Indus Dyeing	Rs 20.17	Unilever Pak	Rs (19.00)
Sunrays Textile	Rs 12.00	Uniliver Foods	Rs (8.33)
National Foods	Rs 11.58	Philip Morris	Rs (7.00)
Millat Tractors	Rs 11.22	Clariant Pak	Rs (5.27)

KSE100-share index recovers 350 points

KARACHI, March 12: The bulls staged a strong comeback on Tuesday with across the board gains at the Karachi Stock market.
As investors were able to shake off fears of imminent US sanctions on the launching of Iran-Pakistan gas pipeline, investors stooped to pick up shares that were knocked down by the heavy plunge on Monday.
The KSE-100 index recovered by a massive 350.29 points or 2 per cent on Tuesday to close at 17,872.65 points, narrowing the gap over Monday’s enormous loss of 440 points to just about 100 points.
With the results season over and no significant economic events, the activity at the stock market remained mostly news driven.
In spite of a grand recovery on Tuesday, the turnover was conspicuous by a decline of 10 per cent to 211 million shares, over 235 million shares traded the day earlier.
In terms of trading value, the amount also dipped by 17 per cent to Rs6.8 billion, from Rs8.2 billion on Monday.
Manager Equity Sales, Samar Iqbal at Topline Securities observed that the market recovered sharply after no sanction related statement from the US.
Investors took a sigh of relief and covered their position after realising that Iran-Pakistan pipeline may not pose major risk.
Engro and NML closed at upper limit due to institutional buying.
Analyst Ahsan Mehanti at Arif Habib Corporation commented that stocks showed strong recovery on below expected global reaction on controversial Pakistan-Iran gas pipeline project.
Bullish activity continued in stocks across the board after reports on delay of CCP hearing of PTCL; easing gas  shortage issues for fertiliser companies and strong corporate earning outlook.
Foreigners were on the ‘buy’ side on Tuesday with net portfolio inflow at $1.58 million, against outflow of $0.88 million the previous day, raising the total net buying for the month to $11 million. Among local participants, individuals were the biggest sellers on Tuesday at $2.77 million, which traders said comprised mainly retail investors and punters, who stayed on the sidelines, fearing a further tumble near the end of the session, which, however, was not to be.
Market capitalisation declined by Rs67 billion to Rs4.436 trillion on Tuesday, from Rs.4.369 trillion the earlier day.
Among the 348 stocks that came up for trading, gainers at 236, outnumbered losers, by ratio of 3:1, with the losses recorded in 84 shares and 28 scrips stayed unchanged.
On the 10 top volume leaders’ list, PIA posted the highest turnover of 24m shares, up by 34 paisa to Rs6.90.
It was followed by another telecom stock, Telecard, which gained 76 paisa to Rs 6.16 on 17m shares.
Engro Corporation, which had touched its ‘lower lock’ the earlier day, regained Rs6.12 to Rs128.65 on 14m shares.
Jah.Sidd.Co edged higher by 28 paisa to Rs14.22 on 13m shares; PTCL was up by 81 paisa to Rs21.08 on 13m shares; Maple Leaf Cement added 96 paisa to Rs17.09 on 10m shares; Fauji Cement was up by 25 paisa to Rs8.15 on 9m shares; Lafarge Pakistan rose by 46 paisa to Rs6.14 on 8m shares; NIB Bank inched up by 3 paisa to Rs2.23 on 8m shares and Nishat Mills, the Mansha group company, recovered almost all the earlier days loss, rising to Rs3.71 on Tuesday to Rs78.06 on 7m shares.
KSE-100 index gains 350.29 points: KARACHI: Karachi stock market closed higher on Tuesday after there was no immediate announcement of sanctions against Pakistan for concluding a gas deal with Iran.
The Karachi Stock Exchange's (KSE) benchmark 100-share index ended two percent, or 350.29 points, higher at 17,872.85 points.
The market had dipped sharply the day before after investors sold shares in anticipation of possible sanctions.
Iran and Pakistan held a ceremony Monday to mark the beginning of work on a gas pipeline, a deal that the US has repeatedly warned may fall foul of a sanctions regime designed to prevent Iran from developing a nuclear bomb.
Engro Corporation and Nishat Mills Ltd closed at their upper limit due to institutional buying, said Samar Iqbal of Topline Securities.
Pakistani stocks can only rise or fall five percent a day, a rule meant to curb volatility in the market.
Foods and Fertilizer Engro Corporation rose 4.99 percent to 128.65 rupees, while Nishat Mills was up 4.99 percent to 78.06 rupees.
In the currency market, the rupee was steady at 97.85/97.90 against the dollar, compared to Monday's close of 97.85/97.90.
Overnight rates in the money market remained flat at 9.40 percent.

Company News:

Foreign investors: SECP to issue provisional certifications

ISLAMABAD, March 12: Foreign investors would not be required to obtain prior security clearance from the interior ministry, as Securities and Exchange Commission of Pakistan (SECP) would issue provisional certifications to foreign directors or companies till the time such a clearance is received.
The interior ministry has relaxed the conditions on the recommendations of SECP. Security clearance now no longer remains a prerequisite for registration of companies having foreign investment and directors.
According to the new policy, the SECP would issue certificate of registration to foreign investors that will be subject to clearance from the ministry.
Similarly, the SECP would also approve appointments of foreign directors on boards of companies.
The appointments would also be subject to provision of security clearance certificate from the ministry.
Besides, there would be no bar on non-resident Pakistanis to work on the boards of directors of local and foreign companies in Pakistan.
As per the agreement between SECP and the interior ministry, it has been decided that the Commission reserves the right to cancel registration of a foreign company or appointment of a foreigner director in case the ministry of interior does not issue security clearance for the director or company concerned after its registration.
However, it would be mandatory for foreigners to file all relevant documents necessary for security clearance along with
an undertaking that in case of refusal of security clearance by the ministry, the already recorded returns shall be de-registered forthwith and the directors shall be replaced.
“Delay in security clearance was considered a major discouraging factor for foreign investment and also led to many complaints,” said an SECP official, adding that the decision would not only increase foreign direct investment (FDI) in Pakistan but also increase trust level of foreigners in the country.
Under the current regime, foreign investors are required to obtain security clearance from the interior ministry before starting their businesses in Pakistan, but the process takes a long time because verification process is done by ISI and IB.
On its part the interior ministry has been assured by the SECP that it would be the responsibility of their local partners if any unwanted action / activity was conducted by the foreign investors which would be against the local laws.
It has also been decided that the SECP — in consultation with other stakeholders — shall finalise a list of countries whose nationals should be considered for exemption from the requirement of security clearance.
The nationals of these countries would be exempted from security clearance requirement which at the moment applies to all foreigners serving as directors of companies operating in Pakistan.
The SECP, considering the problems faced by foreigners and its negative impact on investment in Pakistan, raised the issue with the ministry.
The interior ministry and the SECP have also agreed that a committee with representatives from the Ministry of Interior, SECP, BoI, companies and corporate lawyers should prepare a revised pro forma / questionnaire that does not seek “irrelevant
information,” such as number of their siblings or property they own.
This pro forma should then be placed on the website where it would be easily accessible to all.
The pro forma would also include a declaration from foreign visitors that he/she is not involved in money laundering and other illegal criminal activities.
Once the required information about a foreign investor is obtained, the obtained security clearance would be valid for five years.
It has also been decided that the data management for security clearances for foreign directors will be moved to NADRA as it is better equipped to deal with such issues and one section in the Interior ministry would coordinate with NADRA to deal with the visa issues of these directors.

Senate passes Securities and Exchange Commission amendment bill

ISLAMABAD: The Senate on Tuesday unanimously passed the Securities and Exchange Commission of Pakistan (Amendment) Bill of 2013 aimed at regulating the domestic capital market and safeguarding the interest of investors.
The bill was introduced by Finance Minister Saleem Mandviwalla.
According to proponents of the legislation, the purpose of the bill is to amend the Securities and Exchange Commission of Pakistan Act, 1997 with a view to make it more effective in achieving its objectives.
The proposed amendments in the bill will remove certain practical difficulties experienced in protecting the enforcement and other related actions of the commission and to ensure their continuity and effectiveness in connection with regulating the capital market and safeguarding the interest of investors.
The bill has already been passed by the National Assembly. After signatures of the President it will become an Act of Parliament.

MOHAMMED SALEEM MANSOORI