STOCK MARKET UPDATE: 04.01.2013

STOCKS

Karachi Stocks Up 98.55 Points:
KARACHI, Jan 02: At the close of trading, the KSE-100 index was at 16,588.54, Up 98.55 points.

 (Today Market is Up90.61 @ 11.08 am)

Stocks recover 98 points

KARACHI, Jan 3: Share values rose on the stock market on Thursday with the KSE-100 index recovering 98.55 points, from the heavy plunge of 304 points witnessed on Wednesday. The index closed at 16,588.54 points.
Most market participants admitted that political headwinds had taken charge of the market where nervous investors ditched stocks on Wednesday, fearful of developments ahead after the call of four-million march was endorsed by the government’s major coalition partner.
Investors took heart and were comforted after signals on Wednesday evening that the proposed long march might be averted.But the panic appeared to linger still in the air, as in spite of a partial recovery in index, the volume of business remained low at 102 million shares on Thursday, against the huge turnover of 241 million shares the earlier day.
After a brief hangover at the start of trading on Thursday with index down by another 38 points, the index turned north and kept its course to close with 222 stocks as gainers, compared to 78 losers. Another 22 of the total 322 shares that came up for trading finished unchanged. Another heartening factor on Thursday was another heartening belying the belief that foreigners were making a dash to the exit door, after their earlier day’s net sale of shares worth a heavy $2.39 million.
On Thursday foreigners bought net $0.143 million worth equity. Gross inflow stood at Rs113 million; gross sale at Rs99 million and net foreign buy at Rs14 million on Equity Dealer Samar Iqbal at Topline Securities said that after a steep fall on Wednesday market gained amid some serenity on political front while volumes remained low.
Activity remained confined towards mid cap stocks with JSCL, BYCO and MLCF topped the volume which together contributed 35% of over all volume. Cherry picking in FFC, IPPs and cement stocks was also seen.
The market capitalisation of KSE amounted to Rs4.158 trillion on Thursday, against Rs4.135 trillion the previous day.
The two major gainers for the day were UniLever Pak, up by Rs129.95 to Rs10,199.33, followed by Shezan International higher by Rs19.10 to Rs401.10. The biggest losers were Unilever Food, down by Rs220 to Rs4180 and Siemens Pakistan down by Rs12.43 to Rs625.
The regain in index value was spearheaded by the heavyweight OGDC, which climbed by Rs1.21. National Refinery also edged higher by Rs1.86.
Yet, Attock Petroleum dipped by Rs3.19 and PSO conceded Rs1.15. Save for Byco Petroleum, none of the energy stocks were lower in the volume leaders’ list.1
Byco which had hit the lower lock on Wednesday was up by 28 paisa to Rs13.38 on the second highest volume at 10 million shares. The top-10 active scrips were led by Jah Sidd Co which almost hit the ‘upper limit’ by addition of 99 paisa to Rs15.76 on 17m shares.
As a matter of fact, about two dozen scrips hit their ‘upper lock’ showing maximum permissible gain for a single day. Other shares evidencing larger turnover included: Maple Leaf Cement with volume of 7m shares, up by 31 paisa to Rs14.36; Azgard Nine higher by 25 paisa to Rs7.52 on 4m shares; Nishat (Chunian) posting strong gains of Rs1.52 to Rs34.92 on 4m shares. Bank of Punjab edged higher by 12 paisa to Rs9.04 on 3m shares; Colony Mills was up by 97 paisa to Rs5.12 on 3m shares; Fauji Fertiliser added Rs1.09 to Rs117.16 on 3m shares; PIA shed one paisa to Rs 3.81 on 2m shares and KESC was up 4 paisa to Rs5.48 on 2m shares.

Stocks recover 98 points at KSE

KARACHI: Stock prices witnessed some recovery at Karachi Stock Exchange (KSE) on Thursday as investors were seen taking positions in blue chips.
The Karachi Stock Exchange's (KSE) benchmark100-share index ended 0.60 percent, or 98.55 points, higher at 16,588.54.
"We expect the market to jump back in to a bullish tone as result season kicks in," said a stock dealer.
Financial services firm Jahangir Siddiqui rose 6.77 percent to 15.77 per share and Byco Petroleum was up 2.75 percent to 13.46 per share.
Engro Corp fell 0.05 percent to 88.70 per share.
In the currency market, the Pakistani rupee ended steady at 97.35/97.40 against the dollar, compared to Wednesday's close of 97.34/97.39.
Overnight rates in the money market ended at 6.75 percent compared to Wednesday's close of 6.50 percent. (Reuters)
KSE recovers on hopes for early resolution of political issues
KARACHI: The Karachi Stock Exchange’s benchmark 100-index improved by 98.55 points to 16,588.54 on Thursday on the hopes for early resolution of political issues, said dealers.
Ahsan Mehanti, analyst at Arif Habib Corp, said that the stocks showed recovery at the KSE led by oil, fertiliser and cement sectors amid thin activity on the hopes for early resolution of political issues over implementation of the constitution.
Higher international oil prices and strong earnings outlook played a catalyst role in the bullish sentiment in the oversold market amid concerns over the energy crisis and falling foreign interest, he said.
The KSE-100 index surged by 98.55 points, or 0.60 percent, to 16,588.54 points against 16,489.99 points recorded in the last session. The index, at one time, reached the high of 16,601.80 points, while the low level of the day was recorded at 16,452.30 points.
The KSE-30 index increased by 73.34 points, or 0.54 percent, to 13,549.08 points in the session.
Contrary to the index, turnover and value both declined in the market. Turnover fell by a massive 139 million shares to 102.48 million shares from 241.22 million shares, whereas value declined to Rs2.42 billion against Rs5.56 billion recorded in the last session.
Ovais Ahsan, analyst at JS Research, said that the market reclaimed some lost ground after Wednesday’s selloff as institutional buying in the blue-chips such as MCB Bank up by 0.9 percent and Fauji Fertilizer, which increased by 0.9 percent helped the index in the green zone.
“Volumes remained confined to third-tier stocks as Jahangir Siddiqui Company Limited (JSCL) went up by 6.7 percent on a turnover of 17.3 million shares and Azgard Nine Limited went up by 3.4 percent on a turnover of four million shares, respectively,” he said.
A pre-result rally was witnessed in Fauji Fertilizer Bin Qasim, which rose by 1.3 percent as expectations of a final cash payout of Rs2 invited dividend hunters. “Yesterday’s selloff was mostly driven by local mutual funds, taking a first movers advantage as a correction was long overdue. We expect the market to jump back to a bullish tone as results season kicks in,” he said.
Samar Iqbal, equity dealer at Topline Securities (Pvt) Ltd, said that after a steep fall on Wednesday, the market gained 100 points on Thursday amid some serenity on the political front, while volumes remained low.
“The activity remained confined towards mid-cap stocks with JSCL, Byco and MLCF topped the volume, which together contributed 35 percent to the overall volume. Cherry picking in FFC, IPPs and cement stocks was also seen,” she said.
Highest increase was recorded in the shares of Unilever Pakistan, which increased by Rs129.95 to Rs10,199.33 per share followed by Shezan International, which rose by Rs19.10 to Rs401.10 per share.
Major decline was witnessed in the shares of Unilever Food, which fell by Rs220 to Rs4,180 per share followed by Siemens Pakistan-XD that declined by Rs12.43 to Rs625 per share.
Stocks that recorded significant turnover included Jahangir Siddiqui Co, Byco Petroleum, Maple Leaf Cement, Azgard Nine and Nishat (Chunian).
Jahangir Siddiqui Co was the volume leader with a turnover of 17.32 million shares as it increased by 99 paisas to close at Rs15.76 per share, followed by Byco Petroleum with a turnover of 10.48 million shares. It registered a gain of 28 paisas to end at Rs13.38 per share.
Shares turnover in the futures market increased to 129.95 million from 19.10 million shares traded in the previous session. Of 322 companies’ shares traded, 222 advanced, 78 declined and 22 remained unchanged.
Unilever PakRs129.95
Closing Rs10,199.33
Shezan InterRs19.10
Closing Rs401.10
Mithchells FruitRs17.27
Closing Rs364.99
Unilever FoodRs220.00
Closing Rs4,180.00
Siemens PakRs12.43
Closing Rs625.00
Pak ServicesRs8.00
Closing Rs152.00

MOHAMMED SALEEM MANSOORI

STOCK MARKET UPDATE: 03.01.2013

STOCKS

Karachi Stocks Down 304.88 Points:
KARACHI, Jan 02: At the close of trading, the KSE-100 index was at 16489.99, down 304.88 points.

(Today Market is Up 7.08 @ 10.57 am)

January 02, 2013

 5 TOP GAINERS  &  LOOSERS:

Unilever Food	Rs 100.00	Nestle Pak	Rs (133.33)
Uniliver Pak	Rs 69.38	Bata Pak	Rs (59.50)
Khyber Tobacco	Rs 7.06	Shezan Int’l	Rs (19.62)
Millat Tractors	Rs 2.78	Sanofi Aventis	Rs (18.50)
Blessed Textile	Rs 2.10	Mitchells Fruit	Rs (18.15)

KSE index tumbles by 304 points

KARACHI, Jan 2: A massive sell-off was witnessed the Karachi Stock Exchange on Wednesday amid deteriorating law and order situation in the country’s financial capital, rising political uncertainty and also due to a technical correction, dealers said.
“The stock market witnessed panic-selling across the board on rising political noise amid a call for long march on Jan 14 for a powerful caretaker setup ahead of elections,” said Ahsan Mehanti from Arif Habib Ltd.
The KSE 100-share index ended 1.82 per cent, or 304.88 points, lower at 16,489.99 points. It traded in a broad range as it made an intra-day high at 16,808.13 points and an intra-day low at 16,379.52 points.
Turnover increased to 241.22 million shares compared with 119.68m shares on Tuesday. Trading value rose by almost Rs3.5 billion to Rs5.56bn from Rs2.14bn in the previous trading session, but the market capitalisation fell to Rs4.13 trillion from Rs4.22tr on Tuesday.
The market came under heavy selling pressure with political noise, poor law and order conditions and weak macros combining to override attractive valuations and recent positives such as soft CPI and release of Coalition Support Funds.
That said, after the stellar rally in 2012, market participants were anticipating a correction in early 2013 where post near-term weakness, the market’s valuations and strong corporate profitability should drive another rally across the year,” said Raza Jafri, head of research at AKD Securities Ltd.
The current security situation of Karachi is also a grave concern for investors, brokers said.
The energy sector, the heaviest weighted sector, once again witnessed selling pressure as Oil and Gas Development Co Ltd ended Rs4.52 lower at Rs187.40, Pakistan Oilfields shed Rs3.42 to close at Rs432.70 and Pakistan State Oil closed Rs3.77 lower at Rs227.12.
Foreign investors remained net sellers as they sold shares worth a net $2.39 million on Wednesday, compared with buying a net of $134,125 the previous trading session. In December there total net selling to $7.61m. For 2012, foreign investors bought shares worth a net $122.76m.
Banks were the major buyers in the market as they bought equities worth $5.75m. However companies sold shares worth a net $3.06m while individuals sold a net $3.82m.
The biggest gainer was Unilever Food which ended Rs100 higher at Rs4,400, followed by Unilever Pakistan which closed Rs69.38 higher at Rs10,069.38.
Nestle Pakistan witnessed the biggest loss as it shed Rs133.33 to Rs4,600 followed by Bata Pakistan, which fell Rs50.50 to close at Rs1241.50.
The KSE-30 index ended 1.60pc, or 219.20 points, lower at 13,475.74.
Out of the 364 companies traded, the value of just 31 increased, 326 decreased while 7 remained unchanged.
The second and third tier companies dominated the 10 most active traded stocks: Jahangir Siddiqui Company Ltd ended 81 paisa lower at Rs14.77 on turnover of 15.31 million shares, Byco Petroleum closed at its lower limit, after decreasing by Re1 to 13.10 on 13.9m shares and Pakistan International Airlines ended 60 paisa lower at Rs3.82 on 13.78m shares.
Fauji Cement decreased by 21 paisa to Rs6.21 on 12.77m shares, Bank of Punjab ended 79 paisa lower at Rs8.92 on turnover of 8.96m shares and Maple Leaf Cement shed 54 paisa to Rs14.05 on 7.115m shares.
KESC fell 33 paisa to Rs5.44 on 7.09m shares, Azgard Nine ended 53 paisa lower at Rs7.27 on 6.15m shares and NIb Bank shed 9 paisa to close at Rs2.43 on 6.10m shares. Nishat Chunian POwer ended 44 paisa lower at Rs20.46 on 5.57m shares.

Selling at KSE takes away 304 points

KARACHI: The prices of local equities closed lower at Karachi Stock Exchange (KSE) on Wednesday amid concerns over political stability and weaker interest in energy stocks, dealers said.
The Karachi Stock Exchange's (KSE) benchmark100-share index ended 1.82 percent, or 304.88 points, lower at 16,489.99.
Despite a rally in regional markets and oil prices, heavyweight energy companies Oil & Gas Development Corporation, Byco Petroleum and Pakistan Petroleum Ltd. all fell in value, said dealer Samar Iqbal at Topline Securities Byco Petroleum fell 7.09 percent to 13.10 per share. Financial services firm Jahangir Siddiqui was down 5.01 percent to 14.80 per share.
In the currency market, the Pakistani rupee ended weaker at 97.34/97.39 against the dollar, compared to Monday's close of 97.18/97.23.
Overnight rates in the money market ended at 6.50 percent compared to Monday's close of 8 percent.
On Tuesday the currency market and money markets were closed due to a bank holiday. (Reuters)

Foreigners hold $3.1bn worth KSE equities

KARACHI, Jan 2: Foreign investors hold $3.1 billion worth Pakistan equities, which represents 30 per cent of the stock market’s free-float. It also accounts for 7 per cent of KSE’s aggregate market capitalisation of Rs4.2 trillion.
During the outgoing year, foreign portfolio inflow amounted to $125 million, with the market recovering almost the entire net outflow of $127 million in 2011.
But analysts at brokerage Topline Securities pointed out that the overseas investment in Pakistani equities was nowhere near the net purchase of shares by foreigners in certain other Asian emerging and frontier markets. Notable among them were India which saw an inflow of a whopping $24bn; Korea $15 billion and Taiwan $5 billion.
Investment Advisory firm, Magnus Investment Advisors, which tracks investment in Pakistani securities from the perspective of institutional investors both local and foreign calculated returns on equities of nine emerging markets: Brazil, China, India, Indonesia, Malaysia, Pakistan, Philippines, Thailand and Turkey. The period of study was from Nov 1997 to Oct 2012.
It showed that during the 15 year period, the KSE-100 index provided an annual return in terms of US dollars at 9.51 per cent, which was actually the median of the group of the above 10 countries under study. Philippines, Turkey, Brazil ad China had lower returns.
The annual real return in local currency for KSE-100 stood at 6.45pc, which was higher than the median. “The returns are better than expected given the multiple challenges Pakistan has faced during this time period”, the Magnus stated.
The evaluation of risk of KSE-100 on six measures showed that the average dollar loss in the four years was the most revealing risk measure for foreign investors, as it captured historical meltdown risk.
“We found that KSE-100′s average dollar loss in the four worst years was 36.12pc against the median dollar loss of 35.80pc, with Indonesia, Brazil and Turkey posting higher average loss,” the report stated. Thus, the anecdotally held view that KSE-100 has higher risks than other markets was not borne out by facts, it said. The conclusion drawn was that Pakistani stocks did not represent any unusual risk in the universe of emerging countries.
But the important insight gained by Magnus was regarding allocation to KSE-100 for US investors under a mean variance analyses framework. Two constraints were applied, i.e. no shot sales and minimum allocation of 50pc to Standards & Poors’ 500.
Accordingly, Minimum Variance Portfolio of US investors stood at 55.75 per cent; followed by UK 15.59 per cent and China 15.17 per cent. “Investment in Pakistan stocks makes sense for US investors, given the low correlation of 0.14 between S&P-500 and KSE-100″, the analysts say. Magnus admitted that the size and liquidity issues would rule out investment in KSE-100 as a credible option for many large funds, yet the insight could prove useful for a few small to mid-sized institutional investors.

MOHAMMED SALEEM MANSOORI

STOCK MARKET UPDATE:02.01.2013

STOCKS

Karachi Stocks up 105.96 Points:
KARACHI, Jan 01: At the close of trading, the KSE-100 index was at 16799.37, up 105.96 points.

 (Today Market is down 66.71 @ 11.01 am)

January 01, 2013

 5 TOP GAINERS  &  LOOSERS:

Noon Pakistan	Rs 2.53	Unilever Pak	Rs (100.00)
Pak Tobacco	Rs 2.40	Bata Pak	Rs (50.00)
Tri-Pack Films	Rs 2.33	Shezan Int’l	Rs (21.13)
Jubilee General	Rs 2.31	Mithchells Fruit	Rs (19.25)
Ghani Glass	Rs 2.27	Siemens Pak	Rs (10.48)

Stocks extend overnight losses in dull trade

KARACHI, Jan 1: Selling pressure triggered by energy shares led the country’s main stock index to post losses on the first day of the new year and trading activity was dull as global markets were closed on Tuesday, dealers said.
“As major global markets were closed dull activity was seen at local bourse also. Closure of local banks also affected the activity and forced small investors to book profit.
Bank of Punjab closed at lower limit after company announced a huge issue of right shares,” said Samar Iqbal, a dealer at Topline Securities Ltd.
The KSE 100-share index ended 0.65 per cent, or 110.46 points, lower at 16,794.87 points. It made an intra-day high at 16,935.48 points and made an all time high at 17,032.05 in the previous trading session.
Turnover decreased to 119.68 million shares compared with 177.67m shares on Monday. Trading value fell by more than Rs2 billion to Rs2.14bn from Rs4.44 in the previous trading session and market capitalisation stood at Rs4.22 trillion, compared with Rs4.24tr on Monday.
Dealers also said there was selling as the index approached 17,000 points level as its a technical barrier and it would take a few days before it can comfortably consolidate above that level.
“Sell-off that triggered at 17,000, forced the market participants to reduce holdings, led by E&P (Exploration and Production) stocks negativity soon engulfed the front and lower tier stocks thus forcing the benchmark to undergo a technical adjustment which led losses to enter into triple digits towards the closing bell,” said Hasnain Asghar Ali at Escorts Capital Ltd.
The energy sector witnessed selling pressure as Oil and Gas Development Co Ltd ended 69 paisa lower at Rs191.92, Pakistan Oilfields shed Rs1.42 to close at Rs436.12 and Pakistan Petroleum Ltd closed 46 paisa lower at Rs176.33. Out of the 12 companies listed in the energy sector, one had a positive closing.
The decline in the market was despite the inflation data for December coming in within market expectations. December inflation numbers gauged by CPI stood at 7.9 per cent as against 6.9 per cent in November. The number falls with the consensus range of 7.5 to 8 per cent.
Foreign investors turned into net sellers as they sold shares worth a net $134,125 on Tuesday, compared with buying a net of $1.08m the previous trading session. In December there total net selling to $7.61m. For 2012, foreign investors bought shares worth a net $122.76m.
Banks were the major buyers in the market as they bought equities worth $5.63m. However companies sold shares worth a net $5.16m. The biggest gainer was Noon Pakistan which ended Rs2.53 higher at Rs53.23, followed by Pak Tobacco which closed Rs2.4 higher at Rs69.96.
Unilever Pakistan witnessed the biggest loss as it shed Rs100 to Rs10,000 followed by Bata Pakistan, which fell Rs50 to close at Rs1301.
The KSE-30 index ended 0.50pc, or 69.06 points, lower at 13,694.94.
Out of the 342 companies traded, the value of 83 increased, 239 decreased while 40 remained unchanged.
The second and third tier companies dominated the 10 most active traded stocks: Bank of Punjab ended 99 paisa lower at Rs9.71 on turnover of 15.82m shares, Pakistan International Airlines rose 39 paisa to Rs4.42 on 11.32 million shares and Byco Petroleum shed 35 paisa to Rs14.10 on 8.23m shares.
Jahangir Siddiqui Company Ltd ended 56 paisa lower at Rs15.58 on 7.83m shares, Silkbank fell 7 paisa to Rs2.21 on 5.1m shares and Fauji Cement closed 12 paisa lower at Rs6.42 on 4.45m shares.
Nishat Mills gained 23 paisa to rs64.08 on 3.61m shares, NIB Bank shed 11 paisa to Rs2.52 on 3.38m shares and Maple Leaf Cement increased by 2 paisa to Rs14.59 on 3.06m shares. Samba Bank rose 31 paisa to Rs3.30 on 2.98m shares.

Company News:

2 sugar companies announce results: KARACHI, Jan 1: Sugar companies started the year 2013 by unveiling bitter results.
The two companies declaring financial figures on Tuesday, Haseeb Waqas Sugar Mills and Sakrand Sugar Mills, posted losses. For the year ended Sept 30, 2012, Haseeb Waqas showed a sharp plunge in sales to Rs1.917 billion, from Rs3.088 billion the previous year.
It pushed the bottom line in the red to the extent of Rs201 million, from profit after tax amounting to Rs18 million the earlier year.
Loss per share for 2012 stood at Rs6.21 while earning per share (eps) was Re0.57 in 2011.
Sakrand Sugar also reported sales slide to Rs2.464 billion for financial year 2011-12, from Rs3.125 billion the earlier year.
Loss, however, was cut down to Rs135 million for the latest year, from Rs149 million the preceding year, due to a faster decline in cost of sales to Rs2.408 billion from Rs3.084 billion, which helped raise gross profit to Rs56 million, from Rs41 million.
Loss per share for the year decreased to Rs6.05, from Rs6.56.
Analyst, however, said that the results declared on Tuesday are not the representative of the entire sugar sector.
“This is the tail end of the sugar companies’ results and it would be easier to form an opinion after reviewing the overall sector performance,” said an analyst.
Al-Noor Sugar Mills also announced on Tuesday that it proposed to move an ordinary resolution at the company’s upcoming annual general meeting seeking shareholders’ approval of the decision by the board to raise authorised share capital from Rs200 to Rs500 million to facilitate further issue of capital according to the requirements of the company.
The company board in its meeting on Dec 27 had already announced bonus shares at 5 per cent along with cash dividend at 5 per cent or Re0.50 per share for the year ended Sept 30, 2012.

MOHAMMED SALEEM MANSOORI