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Monday, 1 April 2013

STOCK MARKET UPDATE: 02.04.2013



STOCKS
Karachi Stocks Up 228.80 Points:
KARACHI, Apr 01: At the close of trading, the KSE-100 index was at 18272.11, up 228.80 points.
(Today Market is 96.66 Up@ 10.37 am)

April 1, 2013
 5 TOP GAINERS  &  LOOSERS:

UniLever Pak
Rs 439.00
Colgate Palmolive
Rs (48.16)
Unilever Food
Rs 49.00
Indus Dyeing
Rs (22.20)
Wyeth Pak Ltd
Rs 44.57
Philip Morris Pak
Rs (12.97)
National Foods
Rs 15.27
Khyber Tobacco
Rs (5.40)
Indus Motor Co
Rs 12.69
Faisal Spinning
Rs (5.24)

Karachi Stocks soar 228 points
KARACHI, April 1: Stocks roared on Monday where the KSE-100 index galloped by 228.80 points, to set a new record closing at 18,272.11 points.
Dealers said that though a rally was expected on the first day after the quarter ended March 31 closing, the ferociousness of the bulls surprised the market.
A stockbroker said that the two major reasons for the market bullishness were a boost to investor confidence after the process of filing of nomination papers, which investors saw as one more firm step towards the smooth process towards general elections on May 11.
The rally was also triggered as the results season for quarter-ended March 31 would begin by the end of the week. The investor confidence was fortified by inflation number for March at 6.6 per cent YoY, witnessing the slowest pace of increase in 38 months. The CPI inflation for Feb stood at 7.38 per cent YoY.
Ahsan Mehanti, analyst at Arif Habib Corp said that stocks closed at record after Oil Marketing Companies’ margins raised up to 13pc on oil products raising valuations in OMC sector.
Strong data on urea and cement sales gave rise to bullish sentiments at KSE amid concerns for rising circular debt issues in energy sector, rising fiscal debt and uncertainty over economic impact of IMF loan repayments.
Hasnain Asghar Ali at Escorts Capital said that earnings sensation kept fresh inflows in search of value stocks. Major interest was seen in companies which have record of quarterly payouts.
Those were thought to be safer bet, which attracted investment from both local and foreign participants. Foreign inflow on Monday stood at $1.99 million. Among the local participants, companies bought shares of the value of $0.98 million, mutual funds $3.57 million and ‘other organisations’ $0.59 million.
On the sell side, banks offloaded shares worth $2.81 million, while individuals decided to take profit at the high level, selling off $4.32 million worth stocks. Day traders and punters had a field day as the index traveled only in the northwardly direction.
Analyst observed that the Oil and gas exploration and production stocks led the gainers, while fertiliser and banking stocks pushed index further up. Engro also performed well, in spite of an unclear situation on the gas issues.
The market capitalisation based KSE-30 index surged by 174.14 points to 14,382.52 points. In all 332 stocks came up for trading of which 214 were in the plus territory; 98 in minus and 20 remained unchanged.
The turnover in terms of share declined to 171 million on Monday, from 204 million shares on Friday. Yet, the trading value jumped to Rs7.281 billion, from Rs4.972 billion.
Market capitalisation increased by Rs38 billion to Rs4.485 trillion, from Rs4.447 trillion.
The biggest gains on Monday were recorded in UniLever Pakistan, up by Rs439 to Rs12,689, followed by Unilever Food higher by Rs49 to Rs 4299. The heaviest falls were in Colgate, down by Rs48.16 to Rs1780 followed by Indus Dyeing lower by Rs22.20 to Rs426.80.
Among the top-10 traded scrips, the Maple Leaf Cement hit the ‘upper circuit’ of Re1 to Rs18.76 on 21m shares. Bank of Punjab also hit the upper lock of Re1 to Rs9.22 on 13m shares, DG Khan Cement gained Rs1.86 to Rs71.13 on 12m shares, Engro Corporation soared by Rs5.40 to Rs134.40 on 12m shares and PIA decreased by 58 paisa to Rs7.18 on 9m shares.
Lafarge Pakistan was up by 15 paisa to Rs6.58 on 7m shares, Fauji Cement edged higher by 8 paisa to Rs8.49 on 6m shares, PTCL was up by 13 paisa to Rs20.43 on 6m shares, Jah Sidd Co was up by 28 paisa to Rs13.48 on 5m shares and Lotte PakPTA added 13 paisa to Rs7.41 on 5m shares.
Easing inflation figures boost Pakistani stocks: KARACHI: Pakistan’s stock market closed higher on Monday, supported by a lower inflation rate and interest in the oil, fertilizer and cement sectors, dealers said.
The Karachi Stock Exchange’s (KSE) benchmark 100-share index ended 1.27 per cent, or 228.80 points, higher at 18,272.11 points.
Pakistan’s inflation rate eased to 6.57 percent in March year-on-year, from 7.4 per cent in February, the Pakistan Bureau of Statistics said on Monday.
Traders said the end of the nomination process ahead of May 11 general elections also boosted investor confidence.
“With (the) nomination paper submission process over, investors confidence improves as local bourse crossed 18,270 points mark for the first time ever,” said Samar Iqbal, a trader at Topline Securities.
“Pre-result mania coupled with (a) lower CPI helped also kept interest alive.”
Pakistan Petroleum Ltd rose 2.61 per cent to 179.78 rupees and Engro Corporation rose 4.42 per cent to 134.70 rupees.
In the currency market, the rupee ended steady at 98.38/98.43 against the dollar.
Overnight rates in the money market remained flat at 9.40 percent.
Cements, oils, fertilizers make KSE's day: KARACHI: Pakistan's stock market closed higher on Monday, supported by a lower inflation rate and interest in the oil, fertilizer and cement sectors, dealers said.
The Karachi Stock Exchange's (KSE) benchmark 100-share index ended 1.27 percent, or 228.80 points, higher at 18,272.11 points.
Pakistan's inflation rate eased to 6.57 percent in March year-on-year, from 7.4 percent in February, the Pakistan Bureau of Statistics said on Monday.
Traders said the end of the nomination process ahead of May 11 general elections also boosted investor confidence.
"With (the) nomination paper submission process over, investors confidence improves as local bourse crossed 18,270 points mark for the first time ever," said a trader.
"Pre-result mania coupled with (a) lower CPI helped also kept interest alive”, he added.
Pakistan Petroleum Ltd rose 2.61 percent to 179.78 rupees and Engro Corporation rose 4.42 percent to 134.70 rupees. (Reuters)
Company News:
JSCL asked to explain Rs431m ‘advisory fee’: LAHORE, April 1: The Securities and Exchange Commission of Pakistan (SECP) has taken notice of a hefty payment by the Jahangir Siddiqui & Company Limited (JSCL) of Rs431 million to one of its non-executive director as ‘advisory fee’ in a Rs1.95 billion deal with the International Container Terminal Services Inc (ICTSI) Mauritius Limited early last year.
The payment made to Ali Jahangir Siddiqui, son of Jahangir Siddiqui, founder of the JS Group, forms over 22 per cent of the total deal amount. The company documents say the payment of the fee to him had been “duly approved” by the board of directors.
In a letter sent to the company’s chief executive officer, Suleman Lalani, the commission has asked him to “substantiate the advisory services” given by Ali for which the payment was made to him.
The commission’s letter states the review of the company’s audited accounts for 2012 has shown that an advisory fee of Rs443 million had been paid, which also includes the payment made to its director for signing a share purchase agreement with ICTSI Mauritius Ltd.
Under the agreement the company sold about 13 million of its voting shares to ICTSI in the Pakistan International Container Ltd at a price of Rs150 per share.
The commission has pointed out in the letter that it had also received complaints from a few of the company’s shareholders about the advisory fee payment (to the director). Therefore, it has asked the company’s CEO to provide a certified copy of advisory agreement entered into with Ali Jahangir Siddiqui, minutes of the board meeting in which advisory agreement was approved and details of transactions against which advisory services were provided.
Additionally, the commission has advised the CEO to explain the “transaction in respect of payment to the director” before shareholders at the company’s annual general meeting scheduled for Friday.
Our Equities Correspondent adds from Karachi: Sources close to the company, when asked to comment said: “As this letter was issued today, April 1, 2013 and therefore JSCL board meeting is to be held on Tuesday on this matter.
JSCL cannot comment on communication between itself and the regulator unless it has responded to the regulator first”.
Sources also said: “It is curious that SECP has raised this matter on the basis of an unsigned letter from one of the rivals. The SECP letter is simply a request for information”.
SSGC, TIP sign MoU: KARACHI, April 1: SSGC signed a memorandum of understanding (MoU) with Transparency International Pakistan (TIP) on Monday, a press release said.
The MoU will facilitate the gas utility in availing TIP’s expertise as an observer by adopting best practices while following the rules of the government. The MoU was inked by TIP’s Chairman Sohail Muzaffar and SSGC’s Managing Director Zuhair Siddiqui.
MD SSGC said the signing of this MoU will make SSGC even more conscious and mindful about maintaining transparency in all aspects of procurement processes.
Muzaffar said that of late, apart from the private sector, public sector organisations and schemes such as PIA, NADRA, PSM and BISP had associated themselves with his organisation to ensure transparency in their procurement processes.

MOHAMMED SALEEM MANSOORI

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