STOCK MARKET UPDATE: 16.04.2013

STOCKS

Karachi Stocks down 189.78 Points:
KARACHI, Apr 15: At the close of trading, the KSE-100 index was at 18524.50, down 189.78 points.

(Today 16^th April- Market is 45.48 Down@ 10.47 am)

April 15, 2013

 5 TOP GAINERS  &  LOOSERS:

Murree Brewery	Rs 10.00	Unilever Food	Rs (161.59)
Gillette Pak	Rs 9.28	Bata (Pak)	Rs (92.00)
Atlas Battery Ltd.	Rs 8.41	Mithchells Fruit	Rs (18.95)
Atlas Honda Ltd	Rs 7.65	Philip Morris Pak.	Rs (16.21)
Mehmood Textile	Rs 4.47	National Foods	Rs (14.00)

Equities fall like house of cards

KARACHI, April 15: Bears rampaged all over the stock market on Monday, where equities fell like ninepins. The KSE-100 index plunged 189.78 points to close at 18,524.50. All top volume leaders ended in the red.
Most market participants, however, dispelled the fear that the bears had come to rule the roost. They said that there were reasons for the bulls to take a breather after the steep climb in the past several weeks.
The dull trading on Friday had provided the first signs that the bulls were tired and could rest a while.
The sell off on Monday was triggered by the dismal figures of March quarter earnings announced by the Pakistan Telecommunication Company (PTC), which saw the telecom scrip dip to the day’s low.
News flow on the economic front had nothing to cheer and dealers said that though expected, the status quo on policy rate at 9.5 per cent by the SBP Monetary Policy declared on Friday, was a sentiment dampener.
Other matters of interest in the SBP’s second quarterly report received mixed investor response. Those included: The central bank saying that the country was likely to achieve GDP growth rate of up to 4 per cent against the target of 4.3 per cent for FY13; the average inflation rate for the year projected to remain within target; the rupee depreciation against dollar at 2.6 per cent during H1-FY13 and growth in large scale manufacturing (LSM) sector by 3.3 per cent during second quarter of FY13.
On Monday, the investors’ enthusiasm on fertiliser stocks also cooled a bit as many preferred to revise forecast earnings.
Manager Equity Sales at Topline Securities Samar Iqbal stated that in sympathy with the fall in global equity markets and commodity prices local bourse also dropped by one per cent.
Foreign investors who were in the driving seat in the bull-run, decided to take profit with an outflow of $0.80 million on Monday. Among the local participants, ‘companies’ made hefty purchases of $5.55 million with another net buy of $0.04 worth equity by ‘banks’ and $0.61 million by ‘individuals’.
However, a massive sell off by ‘companies’ valued at $5.5 million erased the gains which should have accrued.
Volumes declined by 18 per cent to 153 million shares on Monday from 180 million shares traded on Friday. Trading value, however, rose by 14 per cent to Rs5.127 billion, from Rs4.509bn as higher valued stocks came up for trading.
The market capitalisation based KSE-30 index dipped 161.66 points to 14,434.86 points.
Market capitalisation saw evaporation of Rs55 billion, which stood at Rs4.546 trillion on Monday, from Rs4.601tr the previous session.
Active stocks were 351 of which an overwhelming majority of 268 ended in the red zone with only 64 in the green and the remaining 19 unchanged.
TRG Pakistan topped the 10-volume leaders list with trading in 20m shares, down 30 paisa to Rs8.01. It was followed by Maple Leaf Cement lower by Re0.94 to Rs17.58 on 11m shares, PTCL hitting its lower circuit, down Rs1.06 to Rs20.17 on 10m shares, Telecard declined 52 paisa to Rs5.05 on 8m shares, Pak Elektron also closed ‘limit down’ by Re1 to Rs12.04, in spite of news reports that the Siemens Pakistan had almost finalised the deal with the company for the sale of its transformer business.
NBP lost three paisa to Rs38.43 on 7m shares, Fauji Cement saw activity in 7m shares down by 4 paisa to Rs8.48, while Engro Corporation was under immense pressure and dived down by Rs6.59 to Rs134 on 7m shares. Jah Sidd Co declined 51 paisa to Rs12.33 on 4m shares and Lotte PakPTA ended lower by 19 paisa to Rs7.10 on 3m shares.

Shifted Companies

KARACHI, April 15: The Karachi Stock Exchange (KSE) shifted the following companies from ‘Defaulters’ segment of the exchange to the “Normal Counter” with effect from Monday, April 15: Mandviwala Mauser Plastic Industries Limited and Dandot Cement Company Limited.

A notice released by the KSE stated that the decision was taken as the companies had rectified the default of Listing Regulation No.30(1)(e) relating to non-payment of Annual Listing Fee.

Company News:

PTC posts Rs3.3bn profit: KARACHI, April 15: Pakistan Telecommunication Company (PTC) announced results for the first-quarter 2013 (1Q2013) on Monday, posting consolidated net profit after tax (PAT) at Rs3.3 billion, translating into earning per share (eps) at Re0.65, up 39 per cent over the PAT at Rs2.4bn (eps: Re0.47) in the same time last year.
On a stand-alone basis, the PAT amounted to Rs2.9bn (eps: Re0.57) in 1Q2013 up by 115 per cent over PAT at Rs8.6bn (eps: Rs1.69) in 4Q2012 and 1.4bn (eps: Rs0.27) in first quarter last year. Sequentially, consolidated and standalone earning were lower by 65 per cent and 66pc, respectively.
The results were below analysts’ consensus expectations, which resulted in a sharp decline of Rs1.06 (touching lower limit) in price of PTC stock in trading at the market, which closed at Rs20.17.
Ayub Ansari, deputy head of research at ADK Securities stated that the 1QCY13 earnings came in below the brokerage’s estimated (consolidated and standalone eps of Re0.97 and Re0.77, respectively), where the analyst attributed lower gross margins as the key factor behind the below line earnings. In this regard, while revenues were in line with estimates, downward sticky costs (consolidated cost of good sold (COGS) were up 10pc QoQ despite 4pc QoQ drop in revenues) contributed towards lower than estimated earnings for the company
Analyst Zeeshan Afzal at Topline Securities stated that the decline in earnings as against 4Q 2012 was primarily linked to the absence of Voluntary Separation Scheme (VSS) reversal and higher effective tax rate. The lower International Clearing House (ICH) revenue and higher cost of services of ‘Ufone’ could also have impacted earnings.
During the quarter, PTC’s consolidated revenue declined by 4pc to Rs32.2bn against Rs33.5bn 4Q 2012. The drop of Rs1.3bn in revenues was apparently linked to about Rs2bn decrease in ICH revenue due to lower minutes. Increase in cost of services by 10pc to Rs20.7bn as against Rs18.8bn in 4Q 2012 also squeezed the gross margins to 35.5pc in 1Q 2013.
Further, 4Q 2012 eps was abnormally high because of reversal of Rs1.5bn VSS charge combining with nominal 3pc effective tax rate. Absence of any reversal and 37pc effective tax rate resulted in consolidated PAT of Rs3.3bn (eps: Rs0.65) in 1Q 2013 as against Rs9.4bn (eps: Rs1.85) in 4Q 2012.

MOHAMMED SALEEM MANSOORI