STOCK MARKET UPDATE: 18.04.2013

STOCKS

Karachi Stocks Up 32.25 Points:
KARACHI, Apr 17: At the close of trading, the KSE-100 index was at 18394.12, up 32.25 points. 

(Today 18^th April- Market is 37.34 Up@ 10.39 am)

April 17, 2013

 5 TOP GAINERS  &  LOOSERS:

Wyeth Pak Ltd	Rs 56.00	Unilever Food	Rs (240.00)
Bata (Pak)	Rs 50.00	Bhanero Tex.	Rs (15.86)
Gillette Pak	Rs 10.23	Philip Morris Pak.	Rs (14.63)
Indus Dyeing	Rs 10.00	Fazal Textile	Rs (11.65)
Mithchells Fruit	Rs 9.45	Atlas Honda Ltd	Rs (9.33)

Bearish spell continues on stock market

KARACHI, April 17: Having plunged by 350 points in the first two sessions this week, the KSE-100 index was in for more losses on Wednesday at the start of the session as it dived by another 103 points to touch 18,208 points.
However, late rally led by second tier stock Maple Leaf Cement, which posted the highest turnover of 19 million shares for the day with its price touching ‘upper circuit’, triggered buying in the cement and fertilizer sectors.
The index thus, rose by 154 points to the day’s highest at 18,465 points. The trading remained choppy throughout the day with the index managing to close with a recovery of 32.25 points to 18,394.12 points.
Analyst Fahad Ali at JS Global observed that after a volatile early session at the bourse, the KSE-100 index closed in the green.
In the later half market witnessed some value buying and positive participation by local institutions. Cement sector rallied on expectations of decline in coal prices, as commodities across the globe moved south.
DGKC announced its 9MFY13 results where 9MFY13 EPS of Rs9.68 was almost in line with market consensus. High volumes were witnessed in PTC and Engro as well, with accumulation at low levels.
Dealers at Arif Habib equity sales stated that Maple Leaf spearheaded the late rally with turnover 19 million shares and outstanding orders of approximately 7m shares. PTC remained under pressure throughout the day but unlike a day ago, it did not hit its lower circuit raising hopes that the worst might be over.
The flow of result announcements were expected to increase with each passing day to results in market upward movement on the basis of good result announcements.
Ahsan Mehanti at Arif Habib Corp observed that stocks closed higher amid speculations about Quarter-end earning announcements. Institutional interest in oil, banking and cement stocks led the late session buying on strong valuations.
Approval for release of Rs20bn for energy sector to ease circular debt crisis also renewed foreign interest, strong data on urea and cement sales were major reasons for bullish sentiments at the market.
The figures released by the National Clearing Company of Pakistan (NCCPL) showed that the foreign investors bought shares valued at $2 million on Wednesday. Among the local participants, ‘banks’ were also buyers of equity worth $1.04 million.
However, companies sold shares at $0.78 million; mutual funds at $0.81 million and individuals also offloaded stocks worth $1.43 million.
Turnover for the day was lower at 174 million shares, from 184 million shares traded a day ago. Trading value rose to Rs6.946 billion, from Rs6.457 billion. Market capitalisation was up by Rs8 billion to Rs4.508 trillion, from Rs4.499 trillion.
In all, 346 stocks came up for trading on Wednesday, of which the plus and minus were equally divided at 161 and 163, respectively.
On the top-10 traded stocks list, Maple Leaf Cement gained 97 paisa to Rs18.36 on 19m shares, PTC lost 71 paisa to Rs18.46 on 14m shares, Engro Corporation in a late rally jumped by Rs4.04 to Rs134.58 on 13m shares, TRG Pakistan shed 36 paisa to Rs7.96 on 12m shares, Jah Sidd Co decreased 33 paisa to Rs11.67 on 11m shares, D.G. Khan Cement stepped down by 5 paisa to Rs69.98 on 8m shares, Byco Corporation slipped by 44 paisa to Rs10.56 on 5m shares, Pak Elektron gained 21 paisa to Rs11.81 on 4m shares; NBP was up by 49 paisa to Rs39.11 on 4m shares. In an unusual move, the Summit Bank, right allotment saw a huge volume of 4m, traded three paisa higher to close at 16 paisa.
Pakistan stocks close higher; rupee steady: KARACHI: Pakistani stocks closed higher on Wednesday after a steep fall of more than 350 points in the last two sessions, with renewed buying in Maple Leaf Cement and Engro helping the recovery, traders said.

The Karachi Stock Exchange's (KSE) benchmark 100-share index ended 0.18 percent, or 32.25 points, higher at 18,394.12 points.

Maple Leaf Cement Factory Ltd was up 5.75 percent to 18.39 rupees while Engro climbed five percent to 135.40 rupees.

Pakistan Telecommunication Co Ltd fell 3.76 percent to 18.45 rupees.

In the currency market, the rupee ended almost steady at 98.34/98.39 against the dollar. Overnight rates in the money market remained flat at 9.40 percent. (Reuters)

Company News:

DG Cement posts Rs4.2bn profit: KARACHI, April 17: Investors, who have been anxiously awaiting cement companies’ results this reporting season, received the first of the financial figures from the D G Khan Cement Company (DGKC) on Wednesday.
The company posted after-tax profit (PAT) at Rs4.2 billion, translating into earnings per share (eps) at Rs9.68 for the nine months 2012 (9MFY13).
The earnings showed a jump of 105pc over the PAT at Rs2.1bn and eps at Rs4.73 in the same time last year (YoY).
The results were generally in line or slightly lower than most analysts’ expectorations of eps at Rs9.88, which was why the D G
Khan stock showed a symbolic decline of 5 paisa to Rs69.98 in trading on Wednesday.
The company’s revenues increased 9pc YoY in 9MFY13, on the back of a higher average net retention price while cost of sales stayed relatively restrained (due to lower coal prices), up only 1pc YoY.
This allowed the company to record gross margin at 38pc as against 33pc in the same period last year, said Furqan Ayub, analyst at JS Global.
The company announced PAT at Rs1.3bn (eps: PKR 3.03) for its 3Q showing a growth of 68pc YoY.
The QoQ comparison reveals a contraction of 10pc in the bottom-line.
Unexpected rise in production and selling costs are catalysts behind attrition in bottom-line, commented analysts at Taurus Securities.
Production costs grew on a much higher note against a modest rise in the topline hence leading to a 13pc contraction in margins.
Unlike the last quarter when Cost of Goods Sold (COGS) per ton declined by 3pc QoQ, it rose by 11pc for the quarter under review.
Analyst Yousuf Rahman at Global Securities listed key highlights which included: Revenues of the company at Rs6,306m during 3Q FY13 against Rs6,003m during 2Q FY13, showing growth of 6pc YoY.
The main reason for the increase was attributed to a rise in retention prices for cement manufacturers as cement prices rose by 6pc YoY to Rs450 per bag during 3Q FY13 against Rs426 per bag during 3Q FY12.
Although, official numbers have not been released, Global Securities analyst believed that the company’s local dispatches were likely to have clocked in at 0.748m tonnes, up 1pc QoQ and export dispatches at 0.25m tonnes, higher by 10pc QoQ in 3Q FY13 on the back of higher demand from Afghanistan following the start of the summer season.

HBL:Habib Bank Limited (HBL) signed an agreement with Daewoo Pakistan Express Bus Service Ltd to provide electronic cash management solutions, a press release said.

MOHAMMED SALEEM MANSOORI