STOCK MARKET UPDATE: 05.12.2012

STOCKS

Karachi Stocks Up 107.49 Points:
KARACHI, Dec 04: At the close of trading, the KSE-100 index was at 16645.47, up 107.49 points.

 (Today Market is 29.10 Down@ 12.10 pm)

December 4, 2012

 5 TOP GAINERS  &  LOOSERS:

Nestle Pakistan	Rs 221.15	Unilever Pak	Rs (190.96)
Island Textile	Rs 41.27	Bata Pak	Rs (10.33)
Colgate Palmolive	Rs 35.00	Millat Tractors	Rs (6.58)
Indus Dyeing	Rs 10.00	Pak Gum & Chem	Rs (4.27)
Allawasaya Textile	Rs 9.47	Faisal Spinning	Rs (4.10)

Stocks gain 112 points at 16,650

KARACHI, Dec 4: Stocks hit a fresh record high on Tuesday as institutions took new positions in blue chips amid expectations in a cut in the State Bank of Pakistan’s key policy rate when it meets this month to unveil its monetary policy, dealers said.The Karachi Stock Exchange (KSE) 100-share index ended 0.68 per cent, or 112.17 points, to record high of 16,650.15 points.
Turnover decreased slightly to 193.05 million shares, compared with 195.59 million traded on Monday, as some investors were cautious and preferred to stay on the sidelines as the index breached its previous all-time high.
Trading value also fell to Rs4.9bn from the previous day’s value of Rs5.37bn but market capitalisation rose to Rs4.17 trillion, compared with Monday’s Rs4.13tr.
“Led by hi cap stocks, Karachi bourse saw new record high. Big market cap stocks, like OGDC, PPL, MCB, gained due to active institutional support.
Retail investors were seen active in JSCL, MLCF and KESC.
Low inflation for November increased expectation of other policy rate cut to force investors to take new positions,” said Samar Iqbal, a dealer at Topline Securities Ltd.
Consumer price index for November stood at 6.93 per cent year on year, down 0.39 per cent, month on month, depicting a deflationary trend, which has raised hopes that the central bank will continue to loosen its monetary policy when it meets this month.“Fresh flows in oil and gas marketing and exploration stocks led the benchmark on the record making track, thus keeping the low volume led adjustment away for the day, gains did found follow-up mainly in the value stocks, thus allowing the index to maintain triple digit gains on closing bell,” said Hasnain Asghar Ali from Escorts Capital Ltd.
Heavyweight Oil and Gas Development Co Ltd gained Rs3.50 to Rs190.16 while MCB Bank rose Rs3.08 to Rs192.75.
The biggest gainer was Nestle Pakistan which rose Rs221.15 to Rs4,644,15, followed by Island Textile which ended Rs41.27 higher at Rs1,040.
Unilever Pakistan witnessed the biggest loss for the day as it shed Rs130.96 to Rs9,805 followed by Bata Pakistan which shed Rs10.33 to close at Rs1,649.67.
Foreign investors bought equities in the net sum of $1.457 million, compared with a net outflow of $1.62 million on Monday.
The KSE-30 index ended 0.75 per cent, or 100.54 points, higher at 13,487.64 and out of the 372 companies traded, the value of 208 increased, 139 decreased while 24 remained unchanged.
Among the 10-top traded stocks, Jahangir Siddiqui Co Ltd gained 91 paisa to Rs18.47 on 23.31m shares, Maple leaf rose 8 paisa to Rs14.52 on 19.68m shares but KESC shed 24 paisa to Rs6.66 on 14m shares.
Fauji Cement ended unchanged at Rs6.91 on 9.35m shares, Pakelektron gained 98 paisa to Rs9.07 on 7.63m shares and SuiNorth rose 81 paisa to Rs24.94 on 5.62m shares.
DG Khan Cement ended 33 paisa higher at Rs54.10 on 5.54m shares, Engo gained 90 paisa to Rs98.23 on 5.22m shares and Azgard Nine closed 13 paisa higher at Rs8.61 on 4.13m shares. Pervaiz Ahmed ended 28 paisa higher at Rs3.44 on 3.65m shares.
Karachi stocks scale new peak: KARACHI: Stocks hit a record high for the fifth time in six sessions on Tuesday, supported by expectations that the central bank will ease rates later this week.

The Karachi Stock Exchange's (KSE) benchmark 100-share index surged as high as 16,675.94 in intraday trading.

It closed at 16,650.15, up 0.68 percent or 112.17 points.

Jahangir Sidiqui rose 5.69 percent, or one rupee, to 18.56 per share, while D.G. Khan Cement was up 0.07 percent, or 0.4 rupees, to 53.81 per share.

Maple Leaf Cement fell 0.14 percent, or 0.02 rupees, to 14.42 per share.

The market found support from expectations that the State Bank of Pakistan will cut its discount rate this week after government data showed inflation under control.

The consumer price index rose a smaller-than-expected 6.93 percent in November compared to a year earlier. (Reuters)

SECP detectsinsider trading

ISLAMABAD, Dec 4: The Securities and Exchange Commission of Pakistan (SECP) has uncovered yet another case of insider trading at the Karachi Stock Exchange (KSE).
The SECP has issued two orders for insider trading against Pakistan Petroleum Provident Fund Trust Company Limited (PPPFTCL) and one of the employees of PPL.
The regulator has imposed a cumulative penalty of Rs1.5m on account of insider trading.
“It is part of stringent surveillance practices to cut unfair market practices and to bring transparency in the market,” said an official of the SECP.
The case was traced during a routine check of the market activity after the closing of trade by SECP officials.
“Like earlier cases, this case of insider trading was unearthed on speculative evidence that was further probed,” the SECP official informed.
The Pakistan Petroleum Provident Fund Trust Company (Pvt.) Limited is a private limited company which manages funds of the employees of the PPL.
The SECP order said that trading data of Karachi Stock Exchange from Aug 7 to Aug 9 transpired that Pakistan Petroleum Limited Senior Provident Fund managed by the trust bought 662,500 shares of the PPL just few days prior to the announcement of financial results of the PPL for the year ended June 30.
The matter was taken up with PPL and show-cause notices were issued to the trust and employees of PPL on suspected insider trading in the scrip of PPL.
The review of documents, provided by the respondents, revealed that the investment committee of the trust approved and recommended buying of PPL shares to the trustees of the Senior Provident Fund which gave its final approval in the said investment in the shares of PPL.
The SECP enquiry established that one member of the Investment Committee of PPPFTCL by virtue of being head of the finance department of PPL who is the General Manager Finance (Chief Financial Officer), was an insider person.
“Due to his position in PPL, the said official was in possession of material information regarding financial results and the performance of the company,” the SECP official said, adding that the case of insider trading against the PPPFTCL and the employee of PPL was established on the basis of preponderance of evidence and material on record.
The commission vide orders dated Nov 30 charged CFO with illegally passing on and disclosing of inside information about the impending financial results of the PPL to the trust which traded on that confidential information unlawfully. The official said that as the market is growing there is need for higher degree of monitoring to maintain ethical practices in the stock market.
Company news:
OGDC, Parco raise LPG price: LAHORE, Dec 4: The state owned OGDC and Pak-Arab Refinery raised their LPG prices to match the Contract Price (CP) of $974 per ton for December after months of keeping their prices below Saudi Aramco CP.
Parco increased its base stock price from Rs93,500 to Rs93,700 per ton whereas OGDC increased its base stock price from Rs87,000 to Rs93,685 per ton with effect from Dec 3.
Despite the nominal increase in producer price, retail prices have jumped by as much as Rs8,000 per ton following shutdown of JJVL’s facility which met with a fire accident last week.
“Temporary suspension of supplies from JJVL which accounts for 25 per cent of country’s LPG production has created a severe shortage in the market,” said Belal Jabbar the spokesman for the LPG Association of Pakistan.
Prices of domestic and commercial cylinders have arisen from Rs1,610 to Rs1,700 and Rs6,220 to Rs6,583 respectively “In order to cater to this shortage JJVL and other companies are importing approximately 7000 tons of LPG to ensure ample availability during the month of December.
LPG marketing companies are cognizant of their responsibility and are working with their distributors to address the shortage” said Belal.
Currently retail prices are as follows in different parts of the country; Rs140 per kg in Sindh and Balochistan, Rs145 per kg in Punjab, Rs150 per kg in AJK and Khyber Pakhtunkhwa and Rs155 pr kg in Northern Areas.

MOHAMMED SALEEM MANSOORI

STOCK MARKET UPDATE: 04.12.2012

STOCKS

Karachi Stocks Down 36.22 Points:
KARACHI, Dec 03: At the close of trading, the KSE-100 index was at 16537.64, down 36.22 points.

(Today Market is 109.933 Up @ 12.59 pm)

December 3, 2012

 5 TOP GAINERS  &  LOOSERS:

Island Textile	Rs 47.55	Nestle Pakistan	Rs (232.00)
Sanofi-Aventis	Rs 8.97	UniLever Pak	Rs (163.58)
Exide (Pak)	Rs 6.74	Bata (Pak)	Rs (62.00)
Salfi Textile	Rs 5.29	National Foods	Rs (6.99)
Javedan Corp	Rs 4.19	Blessed Textile	Rs (6.15)

Pakistan stocks fall, ending 4-day rally; rupee weakens

KARACHI: Pakistani stocks closed lower on Monday, as traders booked profits after the benchmark index hit record highs in each of the previous four sessions.
The Karachi Stock Exchange’s (KSE) benchmark 100-share index ended 0.22 per cent, or 35.88 points, lower at 16,537.98 on total volume of 195,57 million shares. The market surged to a record of 16,651.10 on Friday.
Sui Northern Gas fell 0.46 per cent, or 0.11 rupees, to 24.05 per share, while National Bank dropped 1.32 per cent, or 0.66 rupees, to 49.20 per share. Bank Al Falah rose 0.72 per cent, or 0.12 rupees, to 16.86 per share.
The market’s decline was limited by a smaller-than-expected rise in inflation, which traders believe will give the central bank the necessary freedom to ease interest rates later this week.
Pakistan’s consumer price index rose 6.93 per cent in November from a year earlier, the Pakistan Bureau of Statistics said. On a month-on-month basis, inflation declined by 0.39 per cent from October. In the currency market, the Pakistani rupee eased to 96.57/96.62 against the dollar, compared to Friday’s close of 96.49/96.54, on weak demand for the local currency. Overnight rates in the money market ended at 7.00 per cent compared to Friday’s close of 9.50 per cent.

Equity prices fall on profit-selling

KARACHI, Dec 3: Stocks ended lower on Monday as investors opted to book profits after the market was trading at its record high and gained 336 points in the previous week.
Dealers also said there were concerns on the outlook of the economy especially after a tough stance from the International Monetary Fund calling on Pakistan to take some serious structural reforms.
The KSE 100-share index ended 0.22 per cent, or 35.88 points, lower at 16,357.98 points.
Turnover decreased to 195.59 million shares, compared with 312 million shares traded on Friday, as some investors were cautious and preferred to stay on the sidelines as the index breached its previous all-time high last week.
Trading value also fell to Rs5.37 billion from Friday’s value of Rs6.74 billion and market capitalisation stood at Rs4.13 trillion, compared with Rs4.15 trillion on Friday.
“Tough comments by IMF regarding health of the economy and financial imbalances, coupled with tense law and order situation in the city and stern comments by the political participants was seemingly enough ingredients for a bear-run,” said Hasnain Asghar Ali from Escorts Capital Ltd.
Pakistan should reduce subsidies and widen the tax base to tackle the government’s bloated budget deficit, the International Monetary Fund’s board said last week.
The Pakistani government should also reform tax policy and boost tax compliance in the long-term to reduce the fiscal deficit, which is likely to reach 6.5 per cent of national income by June 2013, above the government’s target of 4.7 per cent, Fund directors said.
The board also called on Pakistan to discuss its policies with the Fund.
“In spite of lower than expected inflation number for the month of November no major activity was seen at local bourses.
Investors preferred to book profits in banks amid hope that a further decline in policy rate will affect their margins,” said Samar Iqbal, a dealer at Topline Securities Ltd.
Pakistan’s November inflation numbers dipped to the lowest level of its revised based at 6.9 per cent as against 7.7 per cent in October, which was far below the market consensus which was expecting it in the range of 7.5 to 8 per cent This has also raised expectations of a rate cut when the central bank meets next month to review the monetary policy.
Foreign investors sold equities in the net sum of $1.62 million, compared buying a net $85,333 on Friday. Foreign investors bought shares worth a net $35.62 million in November.
The KSE-30 index ended 0.26 per cent, or 34.71 points, lower at 13,387.10 points and out of the 379 companies traded, the value of 179 increased, 178 decreased while 22 remained unchanged.
Among the 10-top traded stocks, Sui North Gas came into the limelight as the most turnover of 16 million shares on news that the government may increase gas prices, but decreased 3 paisa to Rs24.13.
Bank Alfalah saw investor interest as there are expectations of a better dividend than last year and gained 7 paisa to Rs16.81 on 14.64 million shares and Fauji Cement shed 4 paisa to Rs6.91 on 13 million shares.
Jahangir Siddiqui Co was up 33 paisa to Rs17.56 on 12.05 million shares, National Bank of Pakistan fell 78 paisa at Rs49.08 on 8.26 million shares and Engro Corp rose Rs1.22 to Rs97.33 on 8.09 million shares.
KESC gained two paisa to Rs6.90 on 7.61 million shares, Bank of Punjab ended 17 paisa higher at Rs9.30 on 6.89 million shares and Maple Leaf Cement closed 49 paisa lower at Rs14.44 on 4.66 million shares.
NIB Bank rose marginally by one paisa to Rs2.39 on 4.15 million shares.
Karachi stocks shed last week’s gains : KARACHI: Equities market closed lower on Monday, as traders booked profits after the benchmark index hit record highs in each of the previous four sessions.
The Karachi Stock Exchange's (KSE) benchmark 100-share index ended 0.22 percent, or 35.88 points, lower at 16,537.98 on total volume of 195,57 million shares.
The market surged to a record of 16,651.10 on Friday.
Sui Northern Gas fell 0.46 percent, or 0.11rupees, to 24.05 per share, while National Bank dropped 1.32 percent, or 0.66 rupees, to 49.20 per share.
Bank Al Falah rose 0.72 percent, or 0.12 rupees, to 16.86 per share.
The market's decline was limited by a smaller-than-expected rise in inflation, which traders believe will give the central bank the necessary freedom to ease interest rates later this week.
Consumer price index rose 6.93 percent in November from a year earlier, the Pakistan Bureau of Statistics said. On a month-on-month basis, inflation declined by 0.39 percent from October. (Reuters)

SECP notifies insurance draft rules

KARACHI, Dec 3: The Securities and Exchange Commission of Pakistan (SECP) notified a draft of accounting rules and regulations for the Life and non-Life Insurance companies, which includes revised accounting formats and regulations to bring in more transparency.
By issuing these accounting formats and regulations, the SECP, as the apex regulator, aims to protect the interests of policyholders and promote the sound development of the insurance industry.
The ‘Revised Accounting Formats and Regulations for Conventional Insurers’ is also available at the SECP website.
The existing SECP insurance rules were introduced in 2002 but since then there have been vast developments and changes in the International Reporting Standards (IFRSs) by International Accounting Standards Board.

MOHAMMED SALEEM MANSOORI

STOCK MARKET UPDATE: 03.12.2012

STOCK

Karachi Stocks Up 56.38Points:
KARACHI, Dec 03: The KSE-100 index was at 16630.24, up 56.38 points.

November 30, 2012

 5 TOP GAINERS  &  LOOSERS:

Bata Pak	Rs 82.00	Unilever Pak	Rs (534.71)
Wyeth Pak	Rs 44.50	Nestle Pak	Rs (245.00)
Island Textile	Rs 44.18	Unilever Food	Rs (220.00)
Indus Dyeing	Rs 27.00	Sunrays Textile	Rs (8.59)
Sanofi Aventis	Rs 17.43	Millat Tractors	Rs (6.16)

KSE 100-Index closes at record 16,573pts

KARACHI: Local stocks hit a record high for the fourth day in a row on Friday, closing the week up nearly 3 percent, driven by a rally in cement shares and expectations that the central bank will ease rates next week.
The Karachi Stock Exchange's (KSE) benchmark 100-share index surged as high as 16,651.10 in intraday trading.
It closed at 16,573.86, up 0.28 percent or 46.78 points from the previous session.
"Investors remained bullish in cement stocks, while the textile sector also joined the bandwagon," said Samar Iqbal, an equity dealer.
"With the end of the year approaching, there was also renewed interest in the banking sector."
Fauji Cement rose 2.05 percent, or 0.14 rupees, to 6.98 per share, while National Bank was up 4.99 percent, or 2.37 rupees, to 49.87 per share.
Karachi Electric fell 0.72 percent, or 0.05 rupees, to 6.88 per share.
The market also found support from expectations that the State Bank of Pakistan will cut its discount rate with inflation under control.
The government will publish November inflation figures on Monday, while the central bank meets later in the week to decide on monetary policy.

KSE gains 336 points during the week

KARACHI: Karachi Stock Exchange (KSE) was seen buoyant all through the week making a handsome gain aggregating to 336 points.
The investors during this week also remained optimistic and traded briskly taking the KSE-100 index to peak at 16,573 points at closing.
Stock market analysts said that the investors took more interest in the cement and textile sectors due to their better financial results. Besides, the stock pundits also attributed the persistent upbeat in the market to investors’ expectations relating to further cut in discount rate by the Central Bank.

MOHAMMED SALEEM MANSOORI