DAILY STOCK MARKET UPDATE:27.10.2011

Stock

Karachi Stocks Down 130.07 Points:
KARACHI, Oct 26: At close of trading, the KSE-100 index was at 11387.22, down 130.07 points.

October 26, 2011

TOP  5  SCRIPTS GAINERS AND LOOSERS:

Nestle Pakistan	Rs 72.14	Rafhan Maize	Rs (107.50)
Bata Pakistan	Rs 34.50	Unilever Pakistan	Rs (55.90)
Indus Motors	Rs 4.49	Siemens Pak	Rs (48.63)
Pak-Suzuki Motors	Rs 2.71	National Refinery	Rs (14.37)
Biafo Industries	Rs 2.05	P.S.O.	Rs (10.21)

KSE 30 – Shares Index	Previous 10,896.20,Wednesday’s 10,697.54, minus 198.66 points
KSE 100 – Shares Index	Previous 11,517.29, Wednesday’s 11,387.22, minus 130.07 points
MARKET CAPITALIZATION	Previous Rs.3,016.606bn, Wednesday’s 2,982.170bn, miuns 34.36bn
VOLUME LEADERS	Fatima Fertiliser 17.300m shares, Fauji Fertiliser Bin Qasim 11.661m, Lotte Pakistan 6.415m, D.G. Khan Cement 3.893m,Fauji Fertiliser 3.829m shares.
TOTAL VOLUME	80.940m shares
TOTAL	TONE: easy, total listed 638, actives 321, inactives 317, plus 55, minus179, unchanged 87

Stocks plunge by 130 points on profit-taking

KARACHI, Oct 26: The shares market on Wednesday fell across the board on active selling originating from all the quarters under the lead of foreign investors and local investors.
Dividend news was on the higher side but it failed to enthuse investors who were more interested in profit-taking.
Nestle Pakistan came out with an interim dividend of 250 per cent, Soneri Bank, bonus shares at the rate of 12.50 per cent, MCB, third interim 30 per cent, Biafo Industries, interim 12.50 per cent but Telecard omitted the payout for the year ended June 30.
The prevailing panic for no apparent bearish reason is well reflected in the 1.13 per cent or 130.07 points decline in the KSE 100-share index at 11,387.22 as most of the top base shares remained under pressure and chipped away Rs35 billion from the market capital at Rs2,982.170 billion.
The market decline was again led by the fertiliser sector, which of late, has assumed the role of market trend-setter under the lead of Fauji Fertiliser, Fauji Fertiliser Bin Qasim and Fatima Fertiliser and some other pivotals on the other counters.
But opinions are divided over the protracted bearish spell despite higher corporate earning reports. Some say continued foreign selling at the inflated levels, both in the fertiliser and oil shares, was the chief reason behind the market fall.
But a leading analyst Samar Iqbal believes that the rollover of outstanding positions of October future contracts to the ruling November settlements appears to be the chief reason behind the market sluggishness as it paves the way for lot of selling to settle the outstanding positions.
Fresh massive fall of well over Rs5 in leading base shares, such as Fauji Fertiliser, Engro Chemical, Fauji Fertilizer Bin Qasim and Nishat Mills took the entire market along with a deeper recession.
Presence of strong support at the dips signals that the war of nerves between the bulls and the bears, which is currently at its peak, is technically-motivated and did not reflects panic among investors, analyst Ahsan Mehanti said.
“The market is moving within its technical parameters, both on the lower and higher sides”, he said, and added: “Indications are that the benchmark has already touched its pre-determined low and could rebound from the current lows even tomorrow.”
For the last couple of weeks, the benchmark is hovering between 12,000 points on the higher side and 11,000 on the lower side and in-between investors play according to their perceptions about the future market outlook, he added.
Analyst Ashraf Zakaria said the leading market trend-setters have already hit their lower levels and could boost the index from the current lows any time as was reflected by the presence of strong support at the falling prices. Losers dominated the list under the lead of Rafhan Maize, off Rs107.50 and Unilever Pakistan, Rs55.90, while Nestle Pakistan
and Bata Pakistan managed to finish with sharp gains ranging from Rs72.14 and 34.50, respectively.
Traded volume rose to 80.940m shares from the previous 69m as gainers trailed far behind the losers at 55 to 179, with 87 shares holding on to the last levels.
The active list was topped by Fatima Fertiliser, lower 40 paisa at Rs24.25 on 17m shares followed by Fauji Fertiliser Bin Qasim, sharply lower by Rs3.02 at 59.26 on 12m shares, Lotte Pakistan, easy by 35 paisa at 11.61 on 7m shares, DG Khan Cement, off Rs1.11 at 21.11 on 4m shares, Fauji Fertiliser, sharply lower by Rs5.28 at 173.06 also on 4m shares, Nishat Mills, lower by Rs2.08 at Rs40.42 on 3m shares, and Engro Corporation, off Rs5.29 at 110.20 on 3m shares.
They were followed by JS & Co, lower 24 paisa at 4.83 on 3m shares, Arif Habib Corporation, lower by Rs1.53 at 29.30 also on 3m shares and Bank Al Falah, easy 26 paisa at 10.89 on 2m shares.
FUTURE CONTRACTS: Sharp fall and large volumes in both the settlements of Fauji Fertilizer, Engro Corporation and Fauji Fertilizer bin Qasim again featured the trading on the forward counter on renewed selling.
The active list was topped by Fauji Fertilizer Bin Qasim, off Rs3.04 and 3.01 for both the settlements at Rs59.30 and 59.82 on 2.714m and 1.519m shares, respectively.
Fauji Fertilizer and Engro Corporation both settlements were marked down by Rs5.32 at Rs5.75 and 5.59 in that order on light volume.
DEFAULTER COS: The active list was led by Ravi Textiles, unchanged at Rs0.87 on 39,735 shares followed by Japan Power, easy four paisa at 0.71 on 38,682 shares and Invest Bank, easy two paisa at 0.27 on 15,958 shares.

Mohammed Saleem Mansoori

DAILY STOCK MARKET UPDATE: 26.10.2011

KSE declines 8 points on foreign selling

KARACHI: The Karachi stock market closed in the red zone on Tuesday as offshore participants offloaded their holdings.
The Karachi Stock Exchange (KSE) 100-share index lost 7.96 points or 0.07 percent to close at 11,517.29 points as compared to 11,525.25 points of the previous session. The KSE 30-share index closed with a decrease of 5.79 points or 0.05 percent to 10,896.20 points as compared with 10,901.99 points.
“Cement and fertilizers prices were high, while uncertainty between Pakistan and US relationship dampened the investor sentiment,” said Arif Habib Investments Ltd Director Ahsan Mehanti.
Analysts said although various corporate announcements carried enough sensation to excite market participants, dumping by offshore participants, and hefty rollover volume, along with vague economic and financial picture, disallowed aggressive resistance.
The market turnover decreased by 15.7 percent to 69.23 million shares from its opening at 82.12 million shares. The overall market capitalization lost 0.07 percent to Rs 3.017 trillion as against Rs 3.019 trillion. Losers outnumbered gainers 106 to 129, while 92 stocks were unchanged.
“Debt repayment that starts early next year, absence of International Monetary Fund monitoring and deteriorating economic benchmarks, undoubtedly will keep economic and financial horizon polluted, however widespread triggers will keep the episodes of snap rallies alive,” said Aziz Fida Husein and Co analyst Hasnain Asghar Ali. “Since political and geo-political environments are likely to stay volatile, extreme movements will continue to provide sector and stock swapping opportunities, while companies exposed to various visible threats in the economy can be looked for offloading on strength, while consistent dividend paying and growth reporting companies will continue to prove safe haven for the equity market specific funds.”
The KMI 30-share index decreased by 0.10 percent or 22.19 points to close at 21,414.58 points after opening at 21,436.77 points. The KSE all-share index showed a fall of 0.06 points or 4.77 percent to close at 7,995.88 points as against 8,000.65 points.
“After foreign selling last week investors preferred to book profits at higher levels,” said Topline Securities (Pvt) Ltd equity dealer Samar Iqbal. “Profit-taking was seen in fertilizer stocks, that is why the index after touching a high of 11,671 points saw some correction.”
Investors are eagerly waiting for Fauji Bin Qasim result that will set direction for the market going forward, he added.
Fatima Fert Co was the volume leader with 10.02 million shares as it closed at Rs 24.65 as compared to its opening at Rs 24.07, increasing 58 paisas. staff report

Shares end flat in volatile session

KARACHI, Oct 25: Shares ended flat on the stock market on Tuesday with the KSE-100 index marginally down by 7.96 points. Many market participants thought that the bear spell, which had pushed stocks down by a huge 463 points or nearly 4 per cent last week, was all but over.
The tone of the market was set by the fertiliser sector, where investors looked closely at the news of shortfall in India. Though not directly linked with the neighbouring country, many analysts thought that import by India and resultant increase in regional urea and DAP prices could be healthy for local fertilizer companies.
Aggregate trading volume was low but the market witnessed extreme volatility, with the benchmark KSE 100-index high at 11,670 points and low at 11,496 points, representing variations of as much as 174 points.
Analysts said that market volatility in controlled measure was healthy sign. Analyst Sarfaraz Abbasi at Summit Capital observed that volatility indicates that whatever news reaches the market is incorporated in share values. “It is a sign of healthy, vibrant market,” he said.
Ahsan Mehanti, Director at Arif Habib Investments, commented that strong corporate results announced by Pakistan Petroleum, higher local commodity prices in cement, fertiliser sectors supported the market sentiment in the quarter end earnings announcement session.
He said that investors seemed concerned over uncertainty in Pak-US relations and stocks took the impact despite favourable amendments in SBP banking sector regulations.
Samar Iqbal, equity dealer at Topline Securities, said that investors were eagerly waiting for quarterly results of Fauji Fertiliser Bin Qasim (FFBL) to be announced on Wednesday (today), “which would set the direction for the market going forward”.
The major gainers on Tuesday were Sitara Chemicals up by Rs3.90 at Rs84.40 and Fazal Cloth ex-dividend ex-bonus higher by Rs3.43 at Rs72.06. On the losing side, Unilever Pakistan declined by Rs107.99 at Rs5,712.01 and Nestle Pakistan lost Rs63.24 at Rs3,260.75.
Volume of business declined to 69.226 million shares, from 82.124 million shares on the previous trading session on Friday.
Minus signs dominated with 129 stocks closing lower against 106 ending in the plus columns. Another 92 stocks ended unchanged.On the active list, Fatima Fertiliser dominated trading adding 58 paisa to Rs24.65 on 10.1 million shares. Fauji Fertiliser Bin Qasim took the second place, with a minor decline of 7 paisa at Rs62.28 on 6.9 million shares. Lotte Pakistan PTA was the third most active stock, down 15 paisa at Rs 11.96 on 5.9 million shares.
Other stocks with high volumes included DG Khan Cement up 42 paisa at Rs22.22 on 4.7 million shares; Engro Corporation taking a blunt of blow with a heavy plunge of Rs5.33 at Rs115.99 on 3.3 million shares, but Fauji Fertiliser adding Rs1.12 to its price at Rs178.34 on 2.8 million shares as investors felt that the problems at Engro would not allow it to decrease market price of urea, keeping the earnings strong at other fertiliser companies.
Bank Alfalah rose 26 paisa to Rs11.15 on 2.7 million shares. The textile stocks Azgard Nine down 11 paisa to Rs4 on 2.7 million shares and Nishat Mills taking huge plunge of Rs2.19 to Rs42.30 on 2.1 million shares, amid negative news flows. National Bank added 18 paisa to close at Rs43.96 on 1.8 million shares.
FUTURE CONTRACTS: On the October contract, Fauji Fertiliser Bin showed highest volume of 1.121 million shares closing 25 paisa down to Rs62.34; Engro on 1.1 million shares, plunged by Rs5.55 to Rs116.20; Engro November contract lost Rs4.19 to Rs117.56 on 0.908 million shares; Arif Habib Corporation on 0.754 million shares, shed 14 paisa to Rs30.82 and National Bank of Pakistan gained 18 paisa to Rs44.08 on 0.568 million shares.

 

 

 

SECP’s guidelines for listing

ISLAMABAD: In a bid to promote the capital markets the Securities and Exchange Commission of Pakistan (SECP) has published guidelines for listing of companies through Initial Public Offerings (IPOs).
The guidelines have been issued by the corporate sector regulator to encourage the companies to get listing at a stock exchange for raising funds to meet financial needs.
The SECP guidebook is helpful for the unregistered firms for the purpose of listing, its benefits, minimal requirements and procedure of listing.
The book refers to various provisions of the applicable laws, rules and regulations, the checklist of the contents of an equity prospectus, the format of applications for seeking approval of a stock exchange, and the SECP and the checklist of documents required.
The guidebook can assist the issuers and their lead manager/consultants, the book runners and the underwriters to make their IPOs smoothly and efficiently.
“It is a useful tool to understand the process of approval of the SECP for the issue, its circulation and publication of prospectus and listing of a company on a stock exchange,” said an SECP official, adding that that listing is accompanied with responsibilities as well including public scrutiny.
“There are many specific requirements that the firms need to comply – and the firm managers need to know these requirements to assess whether the company will be able to fully comply,” he added.

Mohammed Saleem Mansoori

DAILY STOCK MARKET UPDATE: 25.10.2011

Stock

Karachi Stocks Up 139.61 Points:
KARACHI, Oct 21: The KSE-100 index was at 11664.86, up 139.61 points.

October 21, 2011

TOP  5  SCRIPTS GAINERS AND LOOSERS:

Indus Dyeing	Rs 5.86	UniLever Pakistan	Rs (76.48)
Fazal Cloth	Rs 4.51	Bata Pakistan	Rs (25.72)
Shahtaj Sugar	Rs 2.36	National Refinery	Rs (17.95)
PITC	Rs 2.23	Attock Petroleum	Rs (12.13)
Pangrio Sugar	Rs 2.08	Shell Pakistan	Rs (10.89)

KSE 30 – Shares Index	Previous 11,125.61, Friday’s 10,901.99, minus 223.62 points.
KSE 100 – Shares Index	Previous 11,685.15, Friday’s 11.525.25, minus 159.90 points.
MARKET CAPITALIZATION	Previous Rs.3,064.709bn, Friday’s 3,018.870bn, minus 45.839bn.
VOLUME LEADERS	Fatima Fertiliser 21.175m, Lotte Pakistan 7.151m, Fauji Fertiliser Bin Qasim 5.229m, Arif Habib Corpn 4.725m, Engro Corpn.4.486m shares..
TOTAL VOLUME	82.123m shares
TOTAL	TONE:bearish,total listed 638,actives 332,inactives ,plus 69,minus 170,unchanged 93

 

Bears prowl the market during outgoing week

KARACHI: The bears prowled the Karachi stock market for all of the past week, knocking off values from most of the investors’ favoured stocks.
The KSE-100 share index plunged by a massive 463 points and settled at 11,525 points, representing 3.86 per cent loss in the five trading sessions, Monday through Friday.
Market capitalisation declined 3.61 per cent to $26.25 billion from end of the earlier week’s close at $34.94 billion.
Average daily turnover fell 31.27 per cent to 86.11 million shares, from 125.94 million shares a week ago.
The volume in the latest week happened to be lower than the 12-month average of 94.81 million shares.
‘Bad news’ was in ample supply. Yet it was the ‘uncertainty’ that kept investors away.
Analysts at several brokerage houses said that investors were not buoyed in spite of some solid corporate results.
Several external issues were thought to sit on investors’ minds. On the political front, the outcome of US Secretary of State,
Hilary Clinton’s visit to the country on Oct 20 was being closely watched to assess whether the relationship had improved or soured further.
Other than that, investors fret over the prevailing gas shortage for fertiliser sector, which was expected to get worse in winter.
Some market participants suspected that interested quarters may have seized the opportunity to make profit following the Sindh High Court orders to SNGPL for supply of the contracted 100mmcfd gas to Engro’s new plant.
A trader said they weaved an interesting tale around it: If gas supply to Engro is restored, the company would cut back on market price of urea by Rs40 per bag and FFC and FFBL would have no option but to follow suit.
The fertiliser sector earnings would be badly hit. The two scrips on the sector that were rising to the limit for many days and helping index to soar, fell on the floor with a thud. Hence, the sector came down by 5.1 per cent during the week, led by Engro down 13.7 per cent and FFC down by 5.4pc.
Across the board selling was witnessed on the second day of trading after a heavy foreign outflow of $60 million as Xenel, the Saudi based co-sponsor of Hubco quit after selling its entire stake of 12 per cent. Aggregate net foreign outflow during the
week, thus amounted to $67million compared to an outflow of $2.9million the earlier week.
Naveed Tehsin, analyst at JS Global calculated that the net foreign investment for first quarter FY12 clocked in at $236million, down 49 per cent, year-on-year. The analyst observed that the continuing global crisis and stern messages from US Secretary of State, Hilary Clinton overshadowed the impressive corporate results.
Pakistan Oilfields had posted an impressive growth of 55 per cent in profit and Attock Refinery earnings surged by 53 per cent, year-on-year.
Macro releases were largely disappointing. Current account deficit widened to $908 million in Sept, up 4.5 times, the earlier month. Moreover, textile exports during the month were recorded at $982 million, down 10 per cent month-on-month.
Going forward, investor would watch out for EU Summit on Oct 23 that would be critical for eurozone debt debacle. The tone and text of messages from the US Secretary of State in her visit to the country would scare or embolden stock traders.
On the market front, some of the big names: PPL, OGDC, MCB, KAPCO, FFBL, Lucky and Hubco are to announce their July-Sept quarterly results.
Many analysts believe that the trend of earnings and payout by big corporates would determine the direction of the market.

Mohammed Saleem Mansoori