Daily Stock Market update: 22nd Dec,2011

Stock

Karachi Stocks Up 23.92 Points:
KARACHI, Dec 22: The KSE-100 index was at 11292.71,up 22.64 points.(today 22.12.2011,time:10.41 am)

December 21, 2011

TOP  5  SCRIPTS GAINERS AND LOOSERS:

Nestle Pakistan	Rs 122.28	Clariant Pakistan	Rs (5.23)
Siemens Pak	Rs 31.37	Attock Petroleum	Rs (4.71)
Wyeth Pak Limited	Rs 30.33	Millat Tractors	Rs (4.43)
Atlas Honda Ltd	Rs 4.48	Atlas Battery Ltd	Rs (4.37)
Al-Ghazi Tractors	Rs 2.70	Fauji Fertiliser	Rs (2.43)

KSE 30 – Shares Index	Previous 10,409.25, Wednesday’s 10.308.09, minus 101.16
KSE 100 – Shares Index	Previous 11,338.04, Wednesday’s 11,268.55, minus 69.49 points
MARKET CAPITALIZATION	Previous Rs.2,938.750bn, Wednesday’s 2,922.213bn, minus 16.537bn
VOLUME LEADERS	Fatima Fertiliser 8.869m, Engro Corporation 4.663m, Hub-Power 3.884m,Fauji Fertiliser 2.600m, Fauj Fertiliser Bin Qasim 2.414m shares.
TOTAL VOLUME	46.576m shares
TOTAL	TONE; easy, total listed 638, actives 304, inactives 334, plus 92, minus 113, unchanged 99

Karachi Stocks fall 69 points on renewed profit-taking

KARACHI, Dec 21: The stock market on Wednesday failed to sustain the overnight run-up followed by active selling in the energy sector on reports of imposition of gas cess by next month.
After overnight’s two per cent gain, the benchmark was quoted lower by 69.49 points at 11,268.55 points as the same set of leading shares, which pushed it up, ended lower on renewed profit-taking at the previous rise.
Fertilizer shares led the decline under the lead of blue chips, such as Fauji Fertilizer and Engro Corporation, followed by reports of increase in urea prices, while oil shares fell in unison under the lead of OGDC, Pakistan Petroleum, and other pivotals.
Fresh foreign selling in Engro Corporation after overnight recovery also caused selling in other leading shares but Fatima Fertilizer was an exception, which came in for active support at its lower rate and led the list of actives.
Floor brokers said the market lacks consistency in support even from the institutional investors as many are not inclined to hold long positions in view of the prevailing political situation.
They said short-term jobbing bouts of buying and selling appear to be the hallmark of the entire trading activity and until perception of political stability gains credibility, the performance of the market may remain volatile.
“In developing political scenario, the talk of year end buying or portfolio adjustment appears to have no relevance to the ground situation as everybody is playing safe and for good reasons too,” some others said.
Leading gainers were led by Nestle Pakistan and Siemens Pakistan, up Rs122.28 and 31.37, while losers were led by Clariant Pakistan and Attock Petroleum, lower by Rs5.23 and 4.71.
Traded volume fell to 46.576m shares from the previous 78m shares as losers held a fair lead over the gainers at 113 to 92, with 99 shares holding on to the last levels.
The active list was led by Fatima Fertilizer, up 33 paisa at Rs22.82 on 9m shares followed by Engro Corporation, off Rs2.35 on 5m shares, Hub-Power, lower by Rs1.02 at 34.50 on 4m shares, Fauji Fertilizer, off Rs2.43 at 154.86 on 3m shares, Fauji Fertilizer Bin Qasim, easy by 92 paisa at 47.11 also on 3m shares, JS & Co, unchanged at 4.19 on 2m shares, and Bank Al-Falah, easy 16 paisa at 11.35 on 2m shares.
They were followed by WorldCall Telecom, steady by nine paisa at 0.90 on 2m shares, DG Khan Cement, easy 22 paisa at 18.78 on 1.403m shares and Nishat Chunian, up 40 paisa at 18.24 on 1.017m shares.
FUTURE CONTRACTS: Engro Corporation came in for renewed selling on reports of increase in urea prices and was marked down by Rs2.49 at 94.54 on 1.558m shares followed by Fauji Fertilizer, off Rs2.68 at 152.90 on 0.861m shares and Fauji Fertilizer Bin Qasim easy by 82 paisa at 47.21 on 0.619m shares.
They were followed by Attock Refinery, off Rs1.69 at 110.19 on 0.298m shares and Pakistan Oilfields, steady by 15 paisa at 357.72 on 0.233m shares.
DEFAULTER COs: The activity on this counter was slow in the absence of active buyers. Prices, therefore, generally maintained the overnight levels.
Dost Steel came in for stray support and was quoted higher by one paisa at Rs1.20 on 13,148 shares followed by Genertech Power, easy by the same amount at 0.34 on 10,002 shares and SS Oils, up 79 paisa at Rs6.00 on 5,500 shares.
DIVIDEND: Adam Sugar Mills, cash 25 per cent, Pangrio and Mirza Sugar Mill, both nil for the year ended Sept 30, 2011.

Fertilizer stocks in sharp focus

KARACHI, Dec 21: Shares in fertilizer companies have taken centre stage on the country’s stock market, replacing the heavy-weight oil and gas exploration companies.
Four of the five stocks that witnessed the biggest volume of business on Wednesday represented the fertilizer sector: Fatima, the volume leader with 8.9 million shares; Engro at second place with 4.6 million shares, Fauji at fourth with 2.6 million shares and Fauji Fertilizer Bin Qasim at fifth with 2.4 million shares.
The resumption of gas supply to urea producers and its taper off, in turns, has placed fertilizer companies into sharp focus.
Several stock brokerage firms pushed notes in the market in the afternoon on Wednesday, quoting unnamed sources, saying that effective Thursday, Engro Corporation was to raise prices of urea by around Rs100 per bag to Rs1,580 per bag.
Differential would be collected on all the pending orders, they said. Engro Corporation, however, did not make an announcement of price increase, if any, at the stock market on Wednesday.
Analysts contended that the company had reversed its previous decision by raising urea prices by Rs100 (inclusive of sales tax) per 50 kg bag to Rs1,580 per bag (dealer transfer price).
Retail price for the farmer would stand close to Rs1,600 a bag effective from Thursday.
“The price-hike is primarily due to non-availability of gas to Engro new plant (Enven) since last 13 days in spite of government’s commitment to provide gas in December to meet higher demand in peak Rabi season,” said an analyst.
In line with past practice, other fertilizer producers were expected to raise prices in the next few days.
Market watchers said that a risk factor that had surfaced over the past few months was the government’s intention to impose (possibly from January 2012) gas cess on various sectors, including fertilizer to check rising gas demand.

Mohammed Saleem Mansoori

Daily Stock Market update: 21st Dec,2011

Stock

Karachi Stocks Up 242.39 Points:
KARACHI, Dec 20: At close of trading, the KSE-100 index was at 11325.42, up 242.39 points.

December 20, 2011

TOP  5  SCRIPTS GAINERS AND LOOSERS:

Nestle Pakistan	Rs 116.46	Unilever Foods	Rs (7.69)
Siemens Pakistan	Rs 36.67	Indus Motors	Rs (3.56)
Wyeth Pakistan	Rs 32.59	Unilever Pakistan	Rs (3.69)
Service Industries	Rs 7.71	Mirpurkhas Sugar	Rs (2.31)
National Refinery	Rs 6.26	Nadeem Textiles	Rs (2.10)

KSE 30 – Shares Index	Previous 10,161.18, Tuesday’s 10,409.25, plus 248.07 points
KSE 100 – Shares Index	Previous 11,083.03, Tuesday11,338.04, plus 255.91 points
MARKET CAPITALIZATION	Previous 11,083.03, Tuesday11,338.04, plus 255.91 points
VOLUME LEADERS	WorldCall Telecom 11.991m, J.S & Co 10.908m, Engro Corporation 6.305m, Lotte Pakistan 6.193m, Fauji Fertiliser Bin Qasim 3.660m shares.
TOTAL VOLUME	77.801m shares
TOTAL	TONE; Firm, total listed 638, actives 310, inactives 328, plus 150, minus 79, unchanged 81

KSE-100 Index stages smart recovery of 256 points

KARACHI, Dec 20: The shares market on Tuesday staged a smart recovery on active covering purchases at attractively lower levels in fertiliser and oil sectors, aided by strong rumours about early positive changes in the CAPITAL GAINS TAX regime.
Although many were not clear or fathom about the possible changes in the CGT that too at the end of the year, as rumours
have it, everyone tried to ride the bandwagon, putting the market back on the rails just in one go.
A massive increase of 2.30 per cent or 255.91 points at 11,338.04 in the benchmark reflects some may have the information about the changes in the CGT, but others just followed the trend of a highly oversold market.
Fauji Fertiliser whose board meets tomorrow to approve business plan for the next year led the market advance closely followed by Fauji Fertiliser Bin Qasim; even the Engro Corporation, which has dropped to a new low owing to reported closure of its new urea plant, and MCB were the star performer.
But the index heavy OGDC, which rose by Rs5.58 at 159.41 alone contributed about a half of the total rise, floor brokers said.
“The market has been in a highly oversold position and needed a technical correction at the lower levels,” said a leading analyst Ahsan Mehanti, adding “the rumour-mongers made it successfully look so.”
He said in part the covering purchases may well be a part of year-end portfolio dressing but whether the snap rally extends itself or not, would show the reasons behind the speculative rise.
Analyst Samar Iqbal said the market has been in a highly oversold position because of negative political developments and needed correction alone on technical grounds and that came in from short-covering in selected shares having potential of
quick capital gains.
Top gainers included Nestle Pakistan and Siemens Pakistan, up by Rs116.46 and 36.67, while losers were led by Unilever Foods and Indus Motors, off Rs7.69 and 3.56.
Traded volume rose to 77.801m shares as gainers held a strong lead over losers at 150 to 79, with 81 shares holding on to the last levels.
The actives list was led by WorldCall Telecom, easy by three paisa at 0.81 on 12m shares followed by JS & Co, lower by eight paisa at 4.19 on 11m shares, Engro Corporation, up Rs4.59 at 96.56 on 6m shares, Lotte Pakistan, steady by 45 paisa at 9.52 also on 6m shares, Fauji Fertiliser Bin Qasim, up Rs2.16 at 48.03 on 4m shares, Fatima Fertiliser, higher by Rs1.07 at 22.49 on 4m shares and DG Khan Cement, higher 90 paisa at 19.00 on 4m shares.
Azgard Nine followed them, up 36 paisa at 3.46 on 3m shares, Fauji Fertiliser, sharply higher by Rs4.88 at 154.86 also on 3m shares and MCB, up Rs3.44 at 140.70 on 3m shares.
FUTURE CONTRACTS: Engro Corporation led the list of actives on this counter and recovered by Rs4.62 at 97.03 on a large volume of 2.029m shares followed by Fauji Fertiliser, higher by Rs4.87 at 155.58 on 0.893m shares and DG Khan Cement, firm by 92 paisa at 19.09 on 0.809m shares.
They were followed by Azgard Nine, steady 25 paisa at 3.40 on 0.698m shares and Fauji Fertiliser Bin Qasim, higher by Rs2.09 at 48.03 on 0.616m shares.
DEFAULTER COs: Kohinoor Industries came in for active support and led the list of actives, up 11 paisa at Rs1.05 on 0.115m shares, followed by Dost Steel, steady one paisa at 1.19 on 22,927 shares and Dadabhoy Cement, easy by one paisa at 1.41 on 17,909 shares.

Mohammed Saleem Mansoori

Daily Stock Market update: 20 Dec,2011

Stock

Karachi Stocks Down 12.86 Points:
KARACHI, Dec 20: The KSE-100 index was at  11070.17, down 12.86 points. 

December 19, 2011

TOP  5  SCRIPTS GAINERS AND LOOSERS:

Nestle Pakistan	Rs 101.02	Engro Corporation	Rs  (4.76)
UniLever Pak Ltd	Rs 59.65	Ferozsons (lab.)	Rs  (3.02)
Rafhan Maize	Rs 36.11	Tri-Pack Films	Rs  (2.85)
Wyeth Pak Limited	Rs 31.88	Mirpurkhas Sugar	Rs  (2.16)
P.S.O.	Rs 5.89	Pakistan Oilfields	Rs  (1.31)

KSE 30 – Shares Index	Previous 10.154.14, Monday’s 10.161.18. plus 7.04 points.
KSE 100 – Shares Index	Previous 11,028.14, Monday’s 11,083.03, plus 54.89 points.
MARKET CAPITALIZATION	Previous Rs.2,862.753bn, Monday’s 2,876.230bn, plus 13.477bn.
VOLUME LEADERS	Lotte Pakistan 4.913m, J.S.& Co 4.317m, Engro Corporation 3.493m,D.G.K.Cement 2.764m, Fauji Fertiliser Bin Qasim2.384m shares.
TOTAL VOLUME	36.453m shares
TOTAL	TONE;Steady,total listed 638,actives s301,inactives 337,plus 116,minus 95,unchanged 90

KSE-100 Index recovers 55 points on president`s return

KARACHI: The shares market resumed trading on a steady note as investors covered positions on selected counters on the perception that the present setup may be well in place after the return of the President from Dubai.

The bulk of the support originated from institutional investors, which some analysts presume could be `inspired` as was reflected by mostly fractional price changes and light volumes.
The KSE 100-share index recovered 54.89 points at 11,083.03 as compared to last week`s 11,028.14 as some of the leading base shares managed to close partially recovered under the lead of oil shares.
But on the other hand, leading fertiliser shares, which are known market trend-setters remained under the pressure and ended further lower under the lead of Engro Corporation and Fauji Fertiliser.
“Rumours may have died for the moment but only paving the way for others,” some leading analysts believe.
“The next couple of sessions will unfold whether or not the prevailing political uncertainty will end.”
But cautious buying reflects that investors may like to know some more details about the sudden exit and return of the President, notably after talk with the army chief, they said.
Floor brokers said the fall in turnover figures showed that investors just filled in gaps here and there but did not opt for fresh covering at the attractively lower levels.
Investors will await fresh developments on the local political front in the backdrop of a galore of public meetings by various parties, although they have no relevance to the ground situation as the national elections are still far way, they added.
But active covering purchases on the forward counters at the current lower level, notably in National Bank, Fatima Fertiliser and some low-priced issues reflects that investors hopes about the return of normalcy in the current political mess and active year-end portfolio adjustments on the corporate sector.
Leading gainers were led by Nestle Pakistan and Unilever Pakistan, up by Rs101.02 and 59.65, while losers were led by Engro Corporation and Ferozsons Lab, off by Rs4.76 and 3.02.
Traded volume fell to 36.453m shares from the previous 48m shares but gainers held a strong lead over the losers at 116 to 95, with 90 shares holding on to the last levels.
The active list was topped by Lotte Pakistan, up 39 paisa at Rs9.07 on 5m shares followed by JS & Co, lower by 25 paisa at 4.27 on 4m shares, Engro Corporation, off Rs4.76 at 91.97 on 4m shares, DG Khan Cement, easy 59 paisa at 18.10 on 3m shares, Fauji Fertiliser Bin Qasim, up 72 paisa at 45.87 on 2.364m shares, Azgard Nine, steady by five paisa at 3.10 on 2.191m shares, and Fatima Fertiliser, firm by 16 paisa at 21.42 on 2m shares.
They were followed by Fauji Fertiliser, off Rs1.26 at 149.98 on 1.239m shares, National Bank, up 64 paisa at 39.77 on 1.035m shares and TRG Pakistan, easy two paisa at 1.17 on 0.916m shares.
FUTURE CONTRACTS: Engro Corporation remained under pressure and shed another Rs4.76 at 92.41 on 1.295m shares followed by DG Khan Cement, off 56 paisa at 18.17 on 0.823m shares, and Fauji Fertiliser, lower by Rs1.02 at 150.71 on 0.686m shares.
They were followed by Fauji Fertiliser Bin Qasim, up by 61 paisa at 45.9 on 0.535m shares and National Bank, steady by 68 paisa at 39.98 on 0.308m shares.
DEFAULTER COs: Modest activity was witnessed on this counter amid slow demand. Brother Textiles led the list of actives, lower seven paisa at 0.45 on 32,000 shares followed by Kohinoor Industries 27,406 shares and Shakarganj Foods, up six paisa at 6.53 on 14,000 shares.
DIVIDEND: On the corporate front, another good payout was announced by Mirpurkhas Sugar Mills, which came out with a cash of 7.5 per cent plus bonus shares of 10 per cent for the year ended Sept 30.

Modest stock recovery forecast for 2012

KARACHI, Dec 19: Disenchanted by the performance in the current year–nine sessions now remaining to the end of the year– stock strategists have already started to plan for the year ahead.
Topline Securities Research believes that investors in Pakistan equities would keenly follow the foreign flows and political developments in 2012. “These two factors will remain major market movers next year while volumes are likely to remain dull,” say the analysts.
In the year 2011 to date, the Pakistan equities have yielded a negative return of 8 per cent (12 per cent in dollar terms).
Currently Pakistani stocks are trading at close to 3-year low valuation with price-to-earning (P/E) ratio of 5.1 times (5.8 times including OGDC). The dividend yield materialised at 11 per cent (9 per cent with OGDC) which was close to T-Bill yield. But for 2012, analysts expect the stock market to post a modest recovery with KSE-100 index to close at 13,000.
If that be true, the equity market would be giving out estimated gains (inclusive of dividend yield) of 18 per cent (12 per cent in dollar terms).
“We expect energy and fertiliser stocks to continue to perform in 2012 due to strong fundamentals while few banks may do well once the process of economic recovery begins,” say analysts. Yet it would be the foreigner who would have the major say in determining the direction of the market.
Analysts state that in spite of Pakistan being relatively resilient from fragile condition of the West, it cannot remain completely immune. With volumes plummeting to 10-year low at Rs3.6 billion ($42million) a day, the net selling of $118 million by foreigners, could be pointed out as major reason for stocks decline as local investors remained shy, shaken also by the various political issues being faced by the government. Foreign funds still hold Pakistani equity worth $2.4 billion (29 per cent of free float), which could be the major mover and shaker for the equity market in 2012.
“Thus we believe that prolonged global economic crisis, economic slowdown in Pakistan and strained Pakistan-US relations will force risk-averse foreign fund managers to trim their exposure at least in first half of 2012, thus keeping Pakistan market to trade at discount to its historical average price-to-earnings ratio of 8.0 times,” analyst said, adding that as Pakistan equity had shown relatively better performance compared to the regional peers in 2011 and its discount over other markets had shrunk, offshore fund managers may also be compelled to offload their position to rebalance their portfolio.
On the positive side, analysts peer to see the local political scene ahead. Could there be an early election? That and any sign of improvement in relationship with US, biggest foreign investor in Pakistan, might bring cheer to the market, analysts say, posting a possible hasty recovery.
Some analysts at other brokerages, however, do not see a political upheaval in the country as a stimulant for investors to accumulate stocks. But most stock pundits do admit that foreigner fund managers have their hands on the rudder and they could steer the market in either direction until the local investor sentiments starts to improve

Mohammed Saleem Mansoori