KARACHI STOCK EXCHANGE-DAILY MARKET TREND: STOCK MARKET UPDATE:27.07.2012

KARACHI STOCK EXCHANGE-DAILY MARKET TREND: STOCK MARKET UPDATE:27.07.2012: STOCK: Karachi Stocks Down 11.39 Points: KARACHI, July 26: At the close of trading, the KSE-100 index was at 14553.29, down 11....

STOCK MARKET UPDATE:27.07.2012

STOCK:

Karachi Stocks Down 11.39 Points:
KARACHI, July 26: At the close of trading, the KSE-100 index was at 14553.29, down 11.39 points.

July 25, 2012

5 TOP GAINERS  &  LOOSERS:

Wyeth Pak	Rs 33.62	Sanofi Aventis	Rs (7.02)
Mithchells Pak	Rs 14.29	Al Abbas Sugar	Rs (4.70)
Shezan Int’l	Rs 10.31	Al Noor Sugar	Rs (2.79)
National Foods	Rs 10.12	National Refinery	Rs (2.48)
Abbott Lab	Rs 7.48	Pak Datacom	Rs (1.99)

Karachi Stocks Dawn 11 points in directionless trading
KARACHI, July 26: Stocks slipped on Thursday with the KSE-100 index down 11.39 points to 14,553.29 points. Volume in terms of shares increased by 42 per cent to 81 million shares, from 57 million shares traded the day before.
Yet trading value was slightly higher by Rs305 million to Rs2.961 billion, from Rs2.557 billion. Investors played on both sides of the fence, as the market lacked triggers and remained in search of direction.
The great expectations on upcoming corporate results made investors hold on to the high dividend yield stocks. Yet the worries over judicial pronouncements, though postponed for two weeks remained at the back of investors’ mind.
There was no urgency on the part of investors to take firm positions on either side, which led to low volatility of just around 70 points, the index high at 14,617.43 points and low at 14,547.77 points and a change of less than Re1 in prices of most of the 10-top volume leaders.
Foreign investors continued to buy albeit at a lower pace; the net purchase at $0.35 million on Thursday. Among other class of investors, Companies went into heavy buying of $4.08 million worth stocks and individuals also picked up stocks valued at $2.52 million.
Samar Iqbal, equity dealer at Topline Securities said that the market saw mixed activity in spite of positive news flow. Reduction in T-Bill yield and likely reimbursement of $1.1 billion by US did not have any major impact on the share prices.
Ahsan Mehanti at Arif Habib Corp observed that activity remained thin despite strong corporate earnings outlook and recovery in global stocks and commodities. Concerns for rising circular debt in energy sector, revenue loss to fertiliser sector on gas supply worries played a catalyst role in bearish sentiment at KSE, he said.
Hasnain Asghar Ali, COO at Escorts Capital, said that the front line stocks witnessed technical reshuffle and future switching. The sidelined participants awaited deeper discounts for placements.
Volume leaders’ negative outlook stayed prominent but the exchange of healthy volumes on decline, and hefty volumetric trade in JSCL and DGKC, besides allowing increase in overall turnover, kept day traders poised for intra-day trading activity.
He mentioned that the upcoming corporate announcements, eased up temperatures on political front and the likely visit of delegates from neighbouring countries would continue to produce short term triggers, along with receipt of funds from US, which was hoped to soothe macro economic numbers.
Although concerns on political front and judicial decisions could trigger volatility going forward, low multiples and healthy cash payouts could help limit the downside. The low volume due to Ramazan and overlapping roll-over period might however continue to restrict turnover for upcoming sessions. In case of improvement in volumes, intra-day activity could take place in frontline stocks.
The KSE-30 index shed 40.38 points to 12,592.74 points. Market capitalisation decreased by Rs1 billion to Rs3.714 trillion, from Rs3.715 trillion the previous day.
In all, 270 stocks came up for trading on Thursday, with 114 gainers; 133 losers and 23 maintaining old values.
The volume leader list showed Hubco at first place with 12m shares down 6 paisa to Rs43.10.
Jah Sidd Co added 63 paisa to Rs16.22 on 11m shares, D.G. Khan Cement was up by 16 paisa to Rs45.47 on 6m shares, JS Growth Fund edged higher by 5 paisa to Rs8.20 on 3m shares and Lucky Cement lost Rs1.45 to Rs128.89 on 3m shares.
Bank of Punjab rose by 22 paisa to Rs8.82 on 3m shares, JS Investments climbed by 32 paisa to Rs9.73 on 2m shares, Askari Bank rose 9 paisa to Rs15.59 on 2m shares, NBP slid 10 paisa to Rs45.84 on 2m shares and Bank Alfalah shed 6 paisa to Rs17.98 on 2m shares.


Draft amended: NCCPL to collect CGT
ISLAMABAD, July 26: The Federal Board of Revenue (FBR), in an amended draft of Capital Gains Tax, has authorised the National Clearing Company of Pakistan Limited (NCCPL) to collect tax made on profit during the purchase and sale of shares at the capital markets.
NCCPL will also be responsible to deposit the tax collected to the FBR as opposed to previously where investors were liable to deposit the Capital Gains Tax (CGT) themselves.
“The main point of this new amendment is that the major emphasis is on automation, and human interaction has been minimised with regards to the collection of CGT,” an FBR official said, in hopes of increasing CGT collection.
The amended draft is available on FBR’s website and the public is encouraged to give its feedback by August 3.
“If any serious kind of objections are not received that the authorities have overlooked, the ordinance is expected to be notified by the end of August 2012,” said an FBR official.
Under the new regime, to compute the CGT, transactions and their corresponding values with NCCPL, stock exchanges and the Central Depository Company of Pakistan Limited will be taken into account.
The CGT collection during 2011-12 was around Rs445 million, and the officials accounted the low collection due to the self-filing regime, in which most investors did not pay their CGT.
The draft law on the FBR website stated that, “these rules shall apply to capital gains derived from listed securities on or after the April 24, 2012.”
The CGT rate would remain the same; 10 per cent capital gains tax will be imposed on profits made from stocks sold within six months of purchase and eight per cent on stocks sold between 6 months to a year. CGT will not be applicable for shares that have been held by investors for over one year and the base of computation will be from April 24, 2011. Officials said the time of holding the stocks will be calculated from April 24, 2011 for shares sold after April 24, 2012. A FBR official said that the collection procedure had been simplified to “A-B”, which is the purchase price minus sale price.
The draft law also highlighted that ‘capital gain or loss arising on the disposal of listed securities shall be computed on the basis of FIFO method.”
There has been confusion among investors over the timing of the sale of a stock as they maintained that shares that they had sold were of the same company’s shares they had bought earlier.
“Under the new regime, scrip of the same company would be counted as one entity and the same number of shares purchased on the first date would be taken for computing the CGT,” according to the FBR official.

MOHAMMED SALEEM MANSOORI

KARACHI STOCK EXCHANGE-DAILY MARKET TREND: STOCK MARKET UPDATE: 26.07.2012

KARACHI STOCK EXCHANGE-DAILY MARKET TREND: STOCK MARKET UPDATE: 26.07.2012: STOCK: Karachi Stocks Up 40.72  Points: KARACHI, July 26: The KSE-100 index was at 14605.42 , up 40.72  points.(today 10. 46 a...

STOCK MARKET UPDATE: 26.07.2012

STOCK:

Karachi Stocks Up 40.72  Points:
KARACHI, July 26: The KSE-100 index was at
14605.42, up 40.72  points.(today 10.46 am)

July 25, 2012

5 TOP GAINERS  &  LOOSERS:

Shezan Int’l	Rs 9.82	Unilever Pak	Rs (25.00)
Millat Tractors	Rs 6.76	Hino Pak Motor	Rs (3.79)
National Foods	Rs 4.69	Exide Pak	Rs (3.70)
PSO	Rs 3.87	Indus Motor Co	Rs (2.41)
Abbott Lab	Rs 3.59	Clariant Pak	Rs (2.27)

Pakistan stocks end up; rupee weakens; o/n rates unchanged
ISLAMABAD: Pakistan’s main stock market closed up on Wednesday after the country’s Supreme Court adjourned a case that could threaten the country’s prime minister with disqualification, analysts said.
The Karachi Stock Exchange benchmark 100-share index gained 52.61 points, or 0.36 per cent, to close at 14,564.68 points on volume of 43.49 million shares.
Prime Minister Raja Pervez Ashraf has been ordered to re-open corruption cases against President Asif Ali Zardari.  Failing to do so could see him lose office, further discrediting the government.
“There was a fear that the prime minister may face the same prosecution as his predecessor for not re-opening the cases in Switzerland, which would have increased instability.
That not happening was a positive factor,” said Atif Zafar, a research analyst at the JS Global financial services company.
The Supreme Court on Wednesday adjourned proceedings until August 8.
Ashraf’s predecessor Yusuf Raza Gilani was disqualified last month by the Supreme Court for failing to re-open the cases.
In the currency market, the rupee weakened to close at 94.58/63 to the dollar, compared with 94.43/49 on Tuesday.
Overnight rates in the money market remained unchanged at 11.90 per cent.
Karchi Stocks recover 52 points
KARACHI, July 25: The Karachi stock market which was struggling to prevent a plunge, finally found its direction back to the North on Wednesday. The KSE-100 index gained 52.61 points to recover the loss of the last two days. The index closed at 14,564.68 points.
A positive news flow mainly on the judicial matters was complimented by substantially high earnings and dividend by a first major company — Fauji Fertiliser (FFC) in the current result season.
Investors thus decided to return to the trading floor with trading value of shares rising to Rs2.6 billion, about twice the earlier day’s Rs1.4 billion.
The volume in terms of number of shares traded, however stood at 57 million shares on Wednesday, same as the day before.
Investors were also encouraged by the fact that even at its day’s low, the benchmark KSE-100 index did not take a dip below 14,500 crucial level.
Investor sentiments improved also on reports that the sliding rupee and the declining foreign exchange reserves would be provided temporary relief as the US was expected to transfer $1.12 billion to the SBP next week as part payment for services provided to coalition forces.
Hasnain Asghar Ali, COO at Escorts Capital commented that better then expected earnings and payout by Fauji Fertilizer Company (FFC) provided the trigger to otherwise a range bound market.
The judicial concerns pushed back for a fortnight, a breath of fresh air entered the market, which re-activated the bulls. Market could expect various triggers ranging from healthy corporate announcements to receipt of funds withheld by US. All that could invite the sidelined participants, mainly in the frontline stocks trading at low multiples.
Besides FFC various other stocks from cement and textile sectors, kept the fund managers busy in accumulation, mainly due to availability of stocks at attractive multiples. It provided some respite to sinking value and volumes, besides offering wider trading opportunities to investors.
Ahsan Mehanti at Arif Habib Corp said that stocks closed higher amid institutional interest in oversold market. Investors took positions in shares across the board on hopes for release of payment from US.
Also strong earnings outlook, record earning announcement by FFC and renewed foreign interest in blue chip stocks played a catalyst role in bullish sentiments in stocks at KSE despite concerns for macroeconomic conditions and uncertain global markets.
Samar Iqbal, equity Dealer at Topline Securities said that better than expected FFC results and two-week time to the Government by Supreme Court helped equity values.
The KSE-30 index also gained 54.82 points to end at 12,633.12 points. Market capitalisation showed sharp rise of Rs13 billion to Rs3.715 trillion from Rs3.702 trillion on Tuesday.
Among the 252 active stocks on Wednesday, 129 ended in the plus territory; 96 in minus and 27 remained unchanged.
The biggest rise was recorded in Shezan International, up by Rs9.82 to Rs206.34, followed by Millat Tractors rising by Rs6.76 to Rs510.48. The highest losers were seen in UniLever Pak down by Rs25 to Rs7,325 and Hinopak Motors lower by Rs3.79 to Rs72.09.
Among the 10-top volume leaders, Jah Sidd Co was up by 42 paisa to Rs15.59 on 5m shares, DG Khan Cement rose 37 paisa to Rs45.31 on5m shares, Nishat Mills climbed by Rs1.25 to Rs53.45 on 4m shares and Fauji Fertiliser gained Rs1.25 to Rs118.69 on 4m shares, on better than expected second quarter results.
Askari Bank edged up by 14 paisa to Rs15.50 on 3m shares, NBP added 54 paisa to Rs45.94 on 3m shares, JS Investments increased by 43 paisa to Rs9.41 on 2m shares, Arif Habib Corp inched up five paisa to Rs34.10 on 2m shares, Lucky Cement rose Rs1.75 to Rs130.34 on 2m shares and Cherat Cement climbed by Rs1.70 to Rs36.49 on 2m shares.


Urea plants suffer Rs5.5bn loss
LAHORE, July 25: In the first half of 2012, all SNGPL-based plants, including Agritech, DH Fertilisers, Pakarab and Engro (new plant), faced a collective loss of Rs5.5 billion in terms of revenue as their total sales of urea stood at 150,000 tons as against 316, 000 tons in the first half of last year.
In a statement, the fertiliser industry stated that 52 per cent decline in terms of sale translates itself in a revenue loss of Rs5.5 billion. The total urea production by SNGPL based plants in the first half of 2011 stood at 297,000 tons which declined by 33 per cent (or 198,000 tons) till June this year.
The plants operated at 18 per cent of their capacity during these six months against 25 per cent last year. During the first half, they faced an estimated gas curtailment of 82 per cent in which Agritech and Pak Arab got gas for 63 days each while Engro Enven and DH Fertilisers got gas for 33 days in the first six months of 2012.
In the first quarter of this year, all SNGPL-based and SSGC-based plants faced a loss of revenue by 53 per cent compared with first quarter of 2011, generating Rs8.16 billion revenue in the first quarter as compared to last years’ Rs17.29 billion.
In 2012, four plants based on SNGPL as well as SSGC based FFBL lost profitability by 125 per cent and made a collective loss of Rs1.076 billion whereas the same plants had made profit of Rs4.3 billion in the first quarter of 2011.
The SNGPL-based plants are facing crisis as 82 per cent gas curtailment was never witnessed before 2012.
Despite making an investment of $2.3 billion in the last four years on new production capacity, making Pakistan world’s seventh largest urea manufacturer, there is an idle urea capacity of over three million tons.
Fertiliser sector officials said that if same gas curtailment continues during the remaining five months of 2012, the SNGPL-based fertiliser plants would be forced to shut down permanently.


Nishat Mills pulls out of ICI deal
KARACHI, July 25: Nishat Mills Limited withdrew its Public Announcement of Intention (PAoI) for the proposed acquisition of 75.81 per cent shares in ICI Pakistan Limited.
The company announced on Wednesday that it was withdrawing the PAoI “as the target entity did not provide much synergies to
its existing business lines.” Nishat Mills had made the PAoI regarding its proposed acquisition of stake in ICI on June 11, 2012.
The company said it was releasing the withdrawal notice in accordance with Regulation 17 of Listed Companies (substantial acquisition of voting shares and Takeovers) Regulations, 2008.
FFC investment: The Fauji Fertiliser Company (FFC), which declared the financial results and payout for the 1HFY12 on Wednesday, also announced that it was backing out of its acquisition of shares in Agritech.
The company said: “In view of the gas scenario and company’s financial commitments, the FFC board of directors has decided not to pursue 9.99 per cent equity stake in Agritech Limited as conveyed to the stocks exchanges vide the company’s letter dated April 19.”
MOHAMMED SALEEM MANSOORI

KARACHI STOCK EXCHANGE-DAILY MARKET TREND: STOCK MARKET UPDATE:25.07.2012

KARACHI STOCK EXCHANGE-DAILY MARKET TREND: STOCK MARKET UPDATE:25.07.2012: STOCK: Karachi Stocks Down 10.02 Points: KARACHI, July 24: At the close of trading, the KSE-100 index was at 14517.23, down 10.02...

STOCK MARKET UPDATE:25.07.2012

STOCK:

Karachi Stocks Down 10.02 Points:
KARACHI, July 24: At the close of trading, the KSE-100 index was at 14517.23, down 10.02 points.

July 24, 2012

5 TOP GAINERS  &  LOOSERS:

Bata Pak	Rs 31.17	Unilever Food	Rs (10.00)
Clariant Pak	Rs 2.90	National Foods	Rs (6.22)
Indus Motor Co	Rs 2.54	Attock Petroleum	Rs (4.56)
Burshane LPG	Rs 2.01	Hino Pak Motor	Rs (3.99)
Biafo Ind	Rs 1.50	Abbot Laboratories	Rs (3.72)

Karachi Stock market undergoes mild correction
KARACHI, July 24: The Karachi stock market remained listless for the second day on Tuesday, with the KSE-100 index down 15.18 points to settle at 14,512.07 points.
The index had, however, held on to the 14,500 level. The turnover, though showing improvement both in respect of volume and value over the previous day, many market participants suggested that the index was undergoing technical correction.
Volume of shares traded on Tuesday stood at 57 million, which was almost twice the Monday volume. Trading value rose by 54 per cent to Rs1.443 billion on Tuesday, from Rs935 million a day ago.
“The small loss in index on low volumes for the last two days suggests consolidation,” said an equity dealer. The thought was further fortified by low volatility, a mere 60-point gap between the high and low of the index during the day.
The trigger for the bulls was the handsome earnings and payout by upcoming declarations by major companies as the results season progresses.
Samar Iqbal, equity dealer at Topline Securities said that the market once again posted lacklustre behaviour on Tuesday in the absence of any positive news.
Volumes remained low and shares price moved in a narrow band ahead of the Supreme Court hearing on Wednesday.
Later in the day, some reports suggested that the government had submitted its reply to the Supreme Court in the NRO implementation
case, in which it stated that the prime minister cannot write a letter to Swiss authorities. That set the stage for another round of low volumes amid uncertainty at the local bourse.
The news flow was generally mundane. The Securities and Exchange Commission of Pakistan (SECP) approved various documents submitted by the stock exchanges under the Stock Exchanges (Corporatisation, Demutualisation and Integration) Act, 2012.
Moreover, the government decided in principle to restrict all public sector exploration and development companies to sell LPG, extracted from oil and gas fields, only to Sui gas companies so as to stabilise LPG prices.
Ahsan Mehanti at Arif Habib Corporation stated that the activity at the bourse remained dull despite strong corporate earnings outlook, in line with global stocks and commodities, which sank following Moody’s cut on Germany’s outlook of ‘AAA’ credit rating from ‘stable’ to ‘negative’.
Security unrest in the city and concerns for rising circular debt in Pakistan energy sector were other depressants.
Hasnain Asghar Ali COO at Escorts Capital said that the roll over participants had to make discounts deeper to tempt short term support for a smooth roll-over.
It resulted in forcing the benchmark to continue the spell of technical adjustment, mainly due to extreme squeeze in turnover, a regular happening during early sessions of the month of Ramazan.
He contended that despite murky situation on the financial and political fronts, low running multiples proved to be an attraction for the local participants.
A sum of Rs5 billion decreased from the stock market capitalisation, which stood at Rs3.702 trillion, from Rs3.707 trillion. KSE-30 index shed 25.86 points to 12,578.30 points. Among the 231 active stocks, 128 were losers, 76 gainers, while 27 remained unchanged.
JS Growth Fund led the volume leaders list with 13m shares, down 17 paisa to Rs7.91. It was followed by Nishat Chunian Power lower by 9 paisa to Rs15.26 on 8m shares, D.G. Khan Cement added 16 paisa to Rs44.94 on 4m shares, Arif Habib Corp was up 23 paisa to Rs34.05 on 4m shares and Jah Sidd Co rose 15 paisa to Rs15.17 on 3m shares.
Nishat Power slipped by 9 paisa to Rs15.01 on 3m shares, Hub Power Company declined by 46 paisa to Rs43.02 on 2m shares, Lafarge Pakistan slid eight paisa to Rs4.65 on 2m shares, JS Investments rose by 19 paisa to Rs8.98 on 1m shares and Arif Habib Limited climbed by Rs1.78 to Rs40.81 on 1m shares.

Company news: 10.00 am FFC Annoucement:
FFC result today: KARACHI, July 24: Fauji Fertiliser Company Limited (FFC) is slated to declare financial results and payout for the second quarter of year 2012 on Wednesday. The board would sit to consider the figures and payout after the ‘Iftar’ on Tuesday evening.
The 2Q12 results would accompany the figures for the first half of the year. Investors have been anxiously waiting for the FFC results, for the announcement would be the first by a major company this reporting season and could be harbinger for the results lined-up for later in the week and the next.
Second, investors expect FFC to neutralise the ill effect of the earlier declared financials by the subsidiary, Fauji Fertiliser Bin Qasim (FFBL), which had announced 82 per cent plunge in after tax earnings to Rs644 million (earning per share at Re0.69). That fell short of the analysts’ consensus expectations and more importantly, the board skipped a dividend, which was a blow to investor sentiments.
For FFC, analysts at most brokerage houses were projecting jump of 32 to 35 per cent EPS at around Rs4.30 to Rs4.90. Much of the market is looking forward to a cash dividend for the second quarter at Rs3.50 to Rs4.50. That would add to the 30 per cent already paid in the first quarter.
Arif Habib
The company announced results for the year 2012 on Tuesday, posting a profit at Rs366 million, translated into eps at Rs8.13. It
represented a jump out of the deep red of Rs559 million and the loss per share at Rs12.43, suffered the previous year.
The Board announced Rs3 per share dividend for the shareholders. The main items that turned the tide included surge in “capital gains on sale of investments” to Rs256m, from Rs4 million in 2011 and a huge jump in ‘gain on re-measurement of investments carried at fair value through profit & loss account, to Rs260 million, from Rs12m a year ago.
Other item that helped in turnaround was the decrease in ‘administration expenses’ to Rs210 million, from Rs930 million the previous year.
2)KARACHI, July 24: Intel Pakistan, NexSource Pakistan, eHealth Services Ltd and ASK Development will jointly provide quality healthcare to rural communities through eHealth, aimed at improving human and institutional development of civil society and public sector organisations through partnership in capacity building initiatives, says a press release.
MOHAMMED SALEEM MANSOORI