STOCK MARKET UPDATE: 06.05.2013

STOCKS

Karachi Stocks Up 192.10 Points:
KARACHI, May 03: At the close of trading, the KSE-100 index was at 19226.63, up 192.10 points.

(Today 6^th April- Market is 204.60 Up@ 11.10 am)

May 03, 2013

 5 TOP GAINERS  &  LOOSERS:

Nestle Pak.	Rs 332.50	Island Textile	Rs (37.00)
Unilever Food	Rs 245.00	Bhanero Tex.	Rs (16.00)
Rafhan Maize	Rs 233.74	Clariant PaK.	Rs (5.91)
Colgate Palmolive	Rs 40.00	Millat Tractors	Rs (5.34)
Siemens Pakistan	Rs 30.60	Abbott Lab. XD	Rs (4.73)

KSE 100-index gains 192 points

KARACHI, May 3: The rally continued full steam ahead on the stock market on Friday, even after the stocks had displayed stellar performance a day ago when the KSE-100 index comfortably crossed the 19,000 points level. On Friday, the benchmark added 192.10 points to close at 19,226.63.
The participation in terms of total volume was 136 million shares on Friday, lower than 147m shares traded a day ago. As the elections were round the corner, investors who considered discretion to be better part of valour stayed on the sideline, lest the law and order situation turned ugly.
However, investors who hoped that a market-friendly government could assume power, were bullish in the hope that long stagnant industrial growth would pick up pace.
Local investors also watched the strong stock performances in global market. By the evening on Friday, the US stocks had hit all-time highs with S&P climbing to record 1,600 points and Dow above the 15,000 points.Yet, at KSE profit taking was also seen on the last session of the week, ahead of two-day closure. The results season which had kept investors focused on company earnings, was also over with most of the popular and big-ticket companies already out with their quarterly numbers.
A significant event for the day was the start of the buy-back of shares by Unilever Overseas from local investors. As a result, on the ready counter, the Unilever share showed trading in unusually high volume of 66,640 shares, which at Rs15,000 a share worked out at Rs1 billion or around $10 million. A fund manager calculated that the Unilever Pakistan was valued at $2bn of which 25 per cent stock held by the outside shareholders was worth $500m.
The foreign funds held $200m worth of stock, which meant that the country would receive around $300 million by the sale of public holding to foreign parent of Unilever Pakistan.
It was due to the huge inflow from buy-back of Unilever stock that the aggregate foreign investment on Friday stood at the lofty sum of $60.30 million. In contrast, the net sell by local participants was also high at $9.25 million by the sale of FMCGs stock held by companies; $11.65m net sale by banks; $16.10m worth stocks sold by mutual funds. Individuals were net sellers of $6.10m and ‘other organisations’ net sellers to the tune of $17.2 million.
Market participants said that such huge figures would be seen also next week as Unilever continues to buy-back the entire public holdings.
The stock market saw brisk trading in several large cap stocks on the fertiliser and energy sector on Friday as investors who took exit from Unilever entered other big ticket stocks.
Although turnover in terms of shares declined, trading value rose by Rs2.6 billion to Rs6.71bn, from Rs4.18bn due to trading in top-tier scrips. Market capitalisation increased by Rs64bn to Rs4.752 trillion, from Rs4.687tr the day earlier.
The gaining stocks at 233, were nearly twice the losers at 138 in a total of 396 stocks that came up for trading on Friday.
Volume leader was TRG Pakistan, with 10m shares, down 14 paisa to Rs10.04. It was followed by Fauji Cement lower by 13 paisa to Rs8.97 on 9m shares, Lotte Chemical up 29 paisa to Rs7.70 on 9m shares, Dawood Hercules hit ‘upper lock’ by addition of Rs2.77 to Rs58.25 on7m shares, Engro Corp was up by Rs1.55 to Rs133.57 on 6m shares and Hub Power Company showed a hefty gain of Rs1.48 to Rs55.47 on5m shares.
Karachi Stock Exchange up by 192 points: KARACHI: The local capital market closed higher on Friday ahead of crucial elections that should mark the first transfer of power from one democratically elected government to another.

The Karachi Stock Exchange's (KSE) benchmark 100-share index ended 1.01 percent, or 192.10 points, higher at 19,226.63 points.

Foreign flows had a positive impact on the market. Pakistani investors focused on large cap stocks like Pakistan State Oil and Engro Corporation Ltd., dealers said.

Pakistan State Oil Company Ltd. rose 1.11 percent to 204.37 rupees and Engro Corporation was up 0.97 percent to 133.30 rupees.

In the currency market, the rupee ended at 98.25/98.30 against the dollar, stronger than Thursday's close of 98.34/98.40.

Overnight rates in the money market rose to 9.50 percent from Thursday's close of 9 percent. (Reuters)

Company News:

Meezan Bank profit up: KARACHI, May 3: Meezan Bank posted profit-after-tax of Rs982 million in the first quarter (January-March) of 2013 compared to Rs903m in the corresponding period of 2012, a growth of nine per cent.
The earning per share (eps) increased to Rs0.98 (March 2012: Rs0.90). Deposits grew to Rs235bn as of March 31, 2013 (Dec 2012: Rs230 billion).
The bank’s share capital increased to Rs10bn with the issuance of 11pc bonus shares approved by the shareholders at the 17th Annual General Meeting held on March 28, 2013.
The bank met the SBP minimum capital requirement a year in advance.

MOHAMMED SALEEM MANSOORI

STOCK MARKET UPDATE: 03.05.2013

STOCKS

Karachi Stocks Up 52.11 Points:
KARACHI, May 02: At the close of trading, the KSE-100 index was at 19034.53, up 52.11 points.

 (Today 3^rd April- Market is 111.19 Up@ 1056 am)

May 02, 2013

 5 TOP GAINERS  &  LOOSERS:

Rafhan Maize	Rs 222.62	Bata (Pak) XD	Rs (20.28)
Nestle Pak. XD	Rs 70.00	Island Textile	Rs (17.67)
Wyeth Pak	Rs 63.04	Fazal Textile	Rs (10.00)
Shezan Inter.	Rs 25.17	Abbott Lab. XD	Rs (6.51)
Sanofi Aventis	Rs 20.29	Blessed Tex.	Rs (5.25)

Equities cross 19,000-barrier

KARACHI, May 2: As was expected the KSE-100 index finally crossed over the barrier of 19,000 points on Thursday to close at 19,034.53 points, posting gains of 52.11 points.
Investors were encouraged over the events on May 1 holiday, when the Chief of Army Staff assured that election would be held on time. The investor interest remained focused on the last leg of the difficult journey to elections on May 11.
Yet, several analysts pointed out that the country’s bourse was performing in line with global bullish trend in stocks as S&P 500 on the Wall Street had also peaked to all-time high, Australian shares closed at its highest level in five years; Indian shares were at one and half month high.
In the South Asian markets, Indonesia and Malaysia had hit historic high.
Analysts at Arif Habib Equity sales pointed out that the KSE had notched up gains of 52 points on Thursday despite the adverse development in telecom sector where the Competition Commission of Pakistan had imposed hefty fines on LDI operators.
The move depressed the sentiment in telecom shares led by PTC which made a low of Rs17 before closing at Rs17.46 at the end of the session.
Analysts suggested that the benchmark having achieved the target of 19,000 points, investors should reevaluate their portfolio.
Ovais Ahsan, analyst at JS Global stated that a large allocation to equity funds by a government institution over the week ensured interest in the market while result season also continued to invite investor interest in blue chip names.
This was corroborated by the figures released by the National Clearing Company of Pakistan on Thursday, which showed massive purchases worth $2.54 million by ‘mutual funds’ that day, which augmented the consistent net buy by the funds over the last week.
Foreign portfolio investment on Thursday stood at $1.11 million.
In the market report for the month of April, Abdul Azeem analyst at Invest Capital mentioned that net foreign inflows stood at $28 million in Apr-13 translating into a cumulative amount of $98m for CY13TD.
With the increase of 5.2pc MoM (939pts) KSE-100 reached its all-time high level of 18,982 at the end of month (April 2013) on closing basis. However, the average daily shares traded dropped by 11pc MoM to 176m shares as activity thinned in the third tier shares.
Better than expected corporate results mainly in cement, textile and some of the banking scrips were the major factors behind the rising trend in the index during April.
Other analysts maintained that resilience of the market was evident by the KSE gains in April regardless of a deteriorating law and order situation. Sentiments were fairly robust during results season.
Volume of trade on Thursday was 147m shares, a quarter lower than the Tuesday’s turnover at 195m shares.
Trading value declined by Rs694m to Rs4.178bn, from Rs4.872bn. Market capitalisation rose by Rs23bn to Rs4.687 trillion, from Rs4.664tr.
Among the 10-top volume leaders, Fauji Cement with 26m shares gained 24 paisa to close at Rs9.10, TRG Pakistan added 64 paisa to Rs10.18 on 20m shares, PTCL dipped by 46 paisa to Rs17.46 on 8m shares, Wateen Telecom declined 24 paisa to Rs5.04 on 7m shares,
Maple Leaf Cement was up by 25 paisa to Rs18.79 on 6m shares, Soneri Bank gained 41 paisa to Rs7 on 5m shares.
Engro Corporation was again under pressure on gas supply issues with the stock taking a plunge of Rs2.22 to Rs132.02 on 5m shares and Dawood Hercules was up 72 paisa to Rs55.48 on 5m shares.
Elections optimism boosts Pakistani stocks: KARACHI: Pakistani stocks closed higher on Thursday due to emerging clarity and optimism about timely elections on May 11.
Fauji Fertiliser continued to rally after its result announcement while investors remained skeptical about Engro Corporation due to problems of gas supply, dealers said.
The Karachi Stock Exchange’s (KSE) benchmark 100-share index ended 0.27 per cent, or 52.11 points, higher at 19,034.53 points.
Fauji Cement Company Ltd rose 3.05 per cent to 9.13 rupees.
In the currency market, the rupee ended at 98.34/98.40 against the dollar, stronger than Wednesday’s close of 98.39/98.44.
Overnight rates in the money market remained flat at 9 per cent.
Karachi Stock Exchange closes higher: KARACHI: Pakistani stocks closed higher on Thursday due to emerging clarity and optimism about timely elections on May 11.
Fauji Fertiliser continued to rally after its result announcement while investors remained skeptical about Engro Corporation due to problems of gas supply, dealers said.
The Karachi Stock Exchange's (KSE) benchmark 100-share index ended 0.27 percent, or 52.11 points, higher at 19,034.53 points.
Fauji Cement Company Ltd rose 3.05 percent to 9.13 rupees
In the currency market, the rupee ended at 98.34/98.40 against the dollar, stronger than Wednesday's close of 98.39/98.44. Overnight rates in the money market remained flat at 9 percent. (Reuters)

Company News:

SECP draft rules allow dividends in share form: ISLAMABAD, May 2: The Securities and Exchange Commission of Pakistan (SECP) has framed new draft rules allowing the companies to give dividends in the form of shares of any other company – listed or unlisted.
The regulation still in draft stage is titled, ‘Distribution of Specie Dividend Regulations, 2013, which has been published in the official Gazette of Pakistan and placed at the Commission’s website for
public comments that can be submitted online on, by May 23, 2013.
‘The recognised practice in the capital markets of the country is to issue ‘bonus shares’ as dividends to the share holders,” said an official of the SECP, adding, “However, the unrecognised practice in terms of legal requirement also continue in the market where the shares of other companies are given as dividends.”
The official said the category is termed as ‘specie dividend’ that is form of dividend where shares of another company whether listed or unlisted.
These shares are held as investment by the issuing company and can be distributed among the entitled shareholders of the issuing company.
Though the distribution of shares of another company as dividend is an acceptable practice in the capital market as it is considered beneficial to both the issuing company and its shareholders, however there were no regulations in this regard, the official said.
“These draft Regulations have been developed after detailed study of practices in various international jurisdictions, keeping in view to mitigate the chances of fraud and deception by the issuer,” the officials added.
The draft regulation has specified that the issuing company can only distribute ‘specie dividend’ only once in two years.
“This is to ensure that the issuing company may not be forcibly inducting the investments of share holders indirectly into the entity whose shares are being given as specie dividends,” the official said.
The draft regulation covers broad parameters, regarding the eligibility conditions for declaration of specie dividend, and it is required to provide an independent valuation report for the securities to be distributed in case the company is unlisted.The draft regulation also contains conditions for distribution of specie dividend, and the requirement to provide a detailed information memorandum to shareholders for the securities to be distributed.
In order to ensure maximum investor protection and transparency it has been made a requirement that a company’s Articles of Association should explicitly permit the distribution of specie dividend and the company obtains the shareholders’ approval before any such distribution.
Besides the SECP has suggested in the draft to make strict monitoring of the non-listed entities whose shares were being given as dividend.
“Where securities of an unlisted company are distributed as specie dividend, listing of such securities shall be mandatory within a period of 90 days from the date of declaration,” the official said, and for this purpose a no objection certificate shall be obtained from the relevant
stock exchange(s) prior to declaration.
“In case such securities cannot be listed, the issuing company shall encash these securities at the option of the shareholders,” the official said.
He said that it is expected that promulgation of these draft Regulations would facilitate companies to distribute securities of other companies as ‘specie dividend’ subject to disclosure requirements and sufficient conditions for ensuring protection of investors. The SECP has said that since many companies in Pakistan are closely held, the distribution of securities as ‘specie dividend’ in a protected environment will help in broadening the investor base and depth of the market.

MOHAMMED SALEEM MANSOORI

STOCK MARKET UPDATE: 02-05.2013

STOCKS

Karachi Stocks Up 159.57 Points:
KARACHI, Apr 30: At the close of trading, the KSE-100 index was at 18982.42, up 159.57 points. 

(Today 2^nd  April- Market is 111.59 Up@ 11.04 am)

April 30, 2013

 5 TOP GAINERS  &  LOOSERS:

Bata Pak	Rs 108.10	Island Textile	Rs (29.83)
Colgate Palmolive	Rs 92.62	Sanofi Aventis	Rs (16.09)
Rafhan Maize	Rs 77.54	Premium Textile	Rs (7.19)
Wyeth Pak	Rs 76.33	Indus Motor Co	Rs (6.63)
Nestle Pak	Rs 50.00	Blessed Textile	Rs (4.50)

Pakistani stocks close higher, rupee steady

KARACHI: Pakistani stocks closed higher on Tuesday amid expectations that the landmark May 11 general elections will be held on time and the economic situation will improve after the change of government.
Heavyweights Oil and Gas Development Corporation and Muslim Commercial Bank Limited rallied due to institutional buying.
Fauji Fertiliser Company also performed well after its excellent payout.  Fauji Cement Company Limited remained the volume leader after its march result attracted some interest.
The Karachi Stock Exchange’s (KSE) benchmark 100-share index ended 0.85 percent, or 159.57 points, higher at 18,982.42 points.
Fauji Cement Company Ltd rose 2.08 percent to 8.85 rupees and Pakistan Telecommunication Company Ltd fell 2.19 percent to 17.90 rupees.
In the currency market, the rupee ended steady at 98.39/98.44 against the dollar.
Overnight rates in the money market fell to 9 percent from Monday’s close of 9.40 percent.

Company News:

Hubco seeks Rs5bn to run 225MW plant: LAHORE, May 1: Hubco wants the government to make an upfront payment of Rs3-5 billion to enable it to resume power generation from its 225MW plant in Narowal.
A senior Hubco official told Dawn on Wednesday that the company had shut down its Narowal plant on March 26, 2013 after operating it partially since Jan 4 because of non-payment of its dues by the government. The resumption the plant can reduce power cuts in Punjab by 40-50 minutes, he said.
He said the overdue amount for Narowal plant had exceeded Rs19bn, causing the company to default on its payment of Rs3.2bn to its Saudi oil supplier, Bakri. The last payment of Rs3bn was made by the government in early March.
On March 26, the company was given Rs8 million. “How a private sector oil supplier can continue to provide oil without getting its dues and how can we run the plant unless we have cash to meet the daily expense of Rs80m? he asked.
He also demanded equitable treatment to all the independent power producers (IPPs) with regard to repayment of their dues. “At the moment some IPPs that went to Supreme Court last year against non-payment by the government have been receiving partial payments on the court orders and are able to operate while others are either running partially or are shut down owing to huge unpaid dues.
The receivables of the Narowal plant are thrice the receivable of other similar IPPs,” he said.
He was hopeful that the petroleum and water and power ministers would take notice of this discriminatory practice against the company and take immediate actions to solve this problem to bring this efficient power plant of 225MW on line.
He claimed that the reduced fuel supply had also affected the operations of the Hub power plant in Balochistan during the third quarter of this fiscal year to March.
“The fuel supplier has reduced supply below the requirements for daily operations and fuel stock is at alarming level. The supplier has also warned us of encashing the company’s guarantees due to non-payment of dues of fuel supplied to the Narowal plant. And if such a thing
happens it will affect our other generation operations,” he added.

MOHAMMED SALEEM MANSOORI