STOCK MARKET UPDATE: 27.02.2013

STOCKS

Karachi Stocks Down 105.84 Points:
KARACHI, Feb 26: At the close of trading, the KSE-100 index was at 17914.66, down 105.84 points.

 (Today Market is 28.81 Up@ 11.13 am)

February 26, 2013

 5 TOP GAINERS  &  LOOSERS:

UniLever Pak	Rs 300.00	Shezan Inter.	Rs (21.70)
Nestle Pakistan	Rs 231.82	Sanofi Aventis	Rs (17.74)
Colgate Palmolive	Rs 76.00	Clariant Pak	Rs (9.16)
Indus Dyeing SD	Rs 21.65	Blessed Tex.	Rs (6.15)
Mitchells Fruit	Rs 12.49	Millat Tractors	Rs (5.23)

Stocks extend overnight losses

KARACHI, Feb 26: Stocks extended overnight losses on Tuesday as investors continued to book profits at the technical level of 18,000 points and amid lack of positive triggers as the earning season had almost come to an end, dealers said.
The KSE 100-share index ended 0.70 per cent, or 125.60 points, lower to close below the psychological level of 18,000 points at 17,894.90. It traded in a broad range as it made an intra day high at 18,042.40 points and an intra day low at 17,819.47 points.
Turnover fell further to 312.85 million shares, compared with 322.3m shares traded on Monday and trading value decreased to Rs8.88 billion from Rs9.11bn in the previous trading session. Market capitalisation stood at Rs4.46 trillion from Monday’s Rs4.48tr.
“Market witnessed choppy trading activity today with investors opting for profit taking following healthy gains in CY13TD. Telecom companies again dominated volumes. With the result season at its tail end, we could see consolidation in the near-term,” said Ayub Ansari of AKD Securities Ltd.
Dealers said investors were hesitant to indulge in fresh buying as the index was consolidating at current levels but were confident that the market is expected to make new highs once the market settles above 18,000 points.
“Telecard which has been increasing for last few sessions witnessed heavy selling where stock closed 7 per cent down with 67m shares of volume,” said Samar Libel, a dealer at Topline Securities Ltd.
Oil and Gas Development Co Ltd also added towards the market’s losses, as it shed Rs1.81 to close at Rs204.01.
Foreign investors turned into net buyers as they bought shares worth a net $509,444 on Tuesday, compared with selling a net $1.15m on Monday, bringing the total net buying for the month at $23.72m.
Banks were the biggest buyers with equity worth $2.49m.
The biggest gainers were from the Fast Moving Consumer Goods sector led by UniLever Pakistan which ended Rs300 higher to close at Rs10,850 followed by Nestle Pakistan Ltd, which closed Rs231.82 higher at Rs5,131.82. Shezan International witnessed the biggest loss as it shed Rs21.7 to Rs412.30, followed by Sanofi-Aventis Pakistan, which ended Rs17.74 lower at Rs337.26.
The KSE-30 index ended 0.83pc, or 122.44 points, lower at 14,647.65.
Out of the 357 companies traded, the value of only 86 increased, 252 decreased while 19 remained unchanged. The telecom sector along with second and third tier shares once again dominated the 10 most active traded stocks: Telecard Limited was the volume leader as it fell 54 paisa to Rs7.42 on turnover of 67.36m shares, Azgard Nine shed 30 paisa to Rs8.29 on 19.26m shares and Pakistan Telecommunication Co Ltd ended 26 paisa lower at Rs23.38 on 17.86m shares.Jahangir Siddiqui Co Ltd decreased by 89 paisa to Rs17.85 on 16.33m shares, Engro Corp shed Rs2.24 to Rs111.59 on 16.33m shares and Maple Leaf Cement ended 62 paisa lower at Rs18.34 on 11.24m shares.
Pakistan International Airlines fell 8 paisa to Rs4.32 on 10.63m shares, WorldCall Telecom closed Rs1.10 lower at Rs53.64 on 10.21m shares and National Bank of Pakistan shed Rs1.10 to Rs53.64 on 9.03m shares.
Wateen Telecom Ltd ended 40 paisa lower at Rs3.64 on 8.84m shares.
KSE 100-share index sheds 125 points : KARACHI: The Karachi Stock Exchange's (KSE) benchmark100-share index ended 0.70 percent, or 125.61 points, lower at 17,894.89.

Stock market closed lower on Tuesday, after investors sold shares in a telecom company that had been steadily rising this week.

Telecard, which has been increasing for last few sessions following a court approval of increased international call rates, witnessed heavy selling, said dealer Topline Securities.

In the currency market, the rupee strengthened, closing at 98.12/98.17 against the dollar, compared to Monday's close of 98.15/98.12.

Pakistan made another loan repayment to the International Monetary Fund of $392 million, the State Bank of Pakistan said.

Overnight rates in the money market rose to 9 percent from Monday close of 8.75 percent. (REUTERS)

MOHAMMED SALEEM MANSOORI

STOCK MARKET UPDATE: 26.02.2013

STOCKS

Karachi Stocks Down 53.77 Points:
KARACHI, Feb 25: At the close of trading, the KSE-100 index was at 18020.50, down 53.77 points.

(Today Market is 44.60 Down@ 11.22 am)

February 25, 2013

 5 TOP GAINERS  &  LOOSERS:

Unilever Food	Rs 130.00	Colgate Palmolive	Rs (80.00)
UniLever Pak	Rs 31.82	Clariant Pak	Rs (14.02)
National Foods	Rs 8.60	Mithchells Fruit	Rs (8.00)
Sunrays Textile	Rs 7.90	AL-Ghazi Tractors	Rs (4.65)
Shell Pakistan Ltd.	Rs 7.07	Fateh Textile	Rs (4.06)

Stocks undergo technical correction

KARACHI, Feb 25: Stocks ended lower on Monday due to profit-taking, but dealers said losses were curtailed towards the end of the trading session as investors bought shares of heavyweight, National Bank of Pakistan (NBP), after it announced a strong growth in earnings.
The KSE 100-share index ended 0.30 per cent, or 53.77 points, lower at 18,020.50 points. It traded in a broad range as it made a fresh all-time high at 18,175.77 points and an intra day low at 17,972.62 points.
“The new intra-day high however triggered technical correction on back of institutional offloading, wherein despite leading the volumes PTC stayed red through out the session, along the entire main board thus pushing the index below 18,000, the benchmark underwent an adjustment of almost 225 points from day’s high,” said Hasnain Asghar Ali from Escorts Capital Ltd.
Turnover fell to 322.3 million shares, compared with 369m shares traded on Friday and trading value decreased to Rs9.11 billion from Rs9.41bn in the previous trading session. Market capitalisation stood at Rs4.48 trillion from Friday’s Rs4.49tr.
Dealers said investors accumulated shares of NBP as it announced the highest ever cash dividend while unveiling its result for the 2012 and earned a profit after tax of Rs16.2 billion.
But selling in the telecom sector, especially Pakistan Telecommunication Co Ltd, led the index to close in the negative territory.Foreign investors turned into net sellers as they sold shares worth a net $1.15 million on Monday, compared with buying a net $1.91m on Friday, bringing the total net buying for the month at $23.21m.
Individuals were the biggest buyers with equity worth $7.17m but selling by mutual funds worth $6.36m offset the gains.
The biggest gainer was UniLever Food which ended Rs130 higher to close at Rs4,255 followed by UniLever Pakistan which closed Rs31.82 higher at Rs10,550. Colgate Palmolive witnessed the biggest loss as it shed Rs80 to Rs1,520, followed by Clariant Pakistan, which ended Rs14.02 lower at Rs266.39.
The KSE-30 index ended 0.30pc, or 43.97 points, lower at 14,770.09.
Out of the 377 companies traded, the value of 170 increased, 183 decreased while 24 remained unchanged.The telecom sector along with second and third tier shares once again dominated the 10 most active traded stocks: Telecard Limited was the volume leader as it gained 86 paisa to Rs7.96 on turnover of 35.05m shares, National Bank of Pakistan rose Rs1.35 to Rs54.74 on 31.38m shares but PTCL fell 33 paisa to Rs23.64 on turnover of 27.84 million shares.
Jahangir Siddiqui Co Ltd increased by 12 paisa to Rs18.74 on 21.07m shares, Azgard nine hit its upper circuit after gaining 90 paisa to Rs8.59 on 17.57m shares but WorldCall Telecom shed 17 paisa to Rs3.67 on 15.06m shares.
Wateen Telecom Ltd ended 8 paisa lower at Rs4.04 on 12.54m shares, Maple leaf Cement marginally rose 2 paisa to Rs18.96 and Fauji Cement closed 13 paisa lower at Rs7.85 on 8.95m shares.
Engro Foods Ltd also ended on its upper circuit as it gained Rs5.67 to Rs130.47 on 8.18m shares.
KSE sheds gains as companies claim profits; rupee weak: KARACHI: Pakistan's stock market closed lower on Monday after companies booked profits, traders said.
The Karachi Stock Exchange's (KSE) benchmark 100-share index ended 0.30 percent, or 53.77 points, lower at 18,020.50.
"Profit taking was seen from selected counters above the key 18,000 points level," said a dealer.
Engro Corporation rose 5.0 percent to 113.83 rupees as news that the company had reached an agreement for gas supplies from the state-run Oil and Gas Development firm lifted the share price, dealers said.
D.G.Khan Cement fell 1.12 percent to 62.00 rupees and
In the currency market, the rupee ended weaker at 98.15/98.20 against the dollar, compared to Friday's close of 98.06/98.12.
Overnight rates in the money market fell to 8.75 percent from Thursday close of 9 percent.

Company News:

NBP earns Rs16.2bn profit: KARACHI, Feb 25: National Bank of Pakistan announced it’s highest ever cash dividend while unveiling its result for the 2012 and earned a profit after tax of Rs16.2 billion.
It also reported a payout of 15 per cent bonus shares along with a 70 per cent (Rs7.0 per share) cash dividend to the shareholder’s as final dividend for the year 2012, which translates into payout ratio of 97.2.
This year the cash dividend was Rs13 billion (1850m shares at the rate of Rs7), while last year the cash dividend was Rs12.6 billion (1680m
shares at the rate of Rs7.5).
Due to a fall in interest rates, the bank’s interest margin like all other banks remained under pressure, said the bank’s press release.
This reduction was partially offset through volume growth and improving deposit mix.
Total assets of the bank increased to Rs.1.31trillion at the year end, up by 14pc from 2011.
The bank’s total deposits increased by Rs110bn or 12pc. Despite the economic challenges the bank’s non performing loans (NPL) remained at the year 2011 level with NPL ratio improving to 12.2 per cent from 14.9pc last year.
Provision coverage stood at 82 per cent which improved from 76 per cent in 2011.
During 2012, several major I.T. initiatives were undertaken including conversion of almost all the branches to NBP’s online network, expansion of ATM networks, and establishment of a full fledge 24/7 call centre.
National Bank occupies an important position among the ‘Big Five’ commercial banks in the country.
The bank became the first ever financial institution of the country to cross one trillion rupees bench-mark with more than 16,500 employees and 1,285 branch banking network across the country, and 23 foreign branches and representative offices in four countries left unique footprints in South Asia, Central Asia and Middle East.

MOHAMMED SALEEM MANSOORI

STOCK MARKET UPDATE: 25.02.2013

STOCKS

Karachi Stocks Down 54.21 Points:
KARACHI, Feb 25: The KSE-100 index was at 18020.06, Down 54.21 points.  (Today @ 2.17 pm)

February 23, 2013

 5 TOP GAINERS  &  LOOSERS:

MCB Bank Ltd.	Rs 10.94	Unilever Food	Rs (75.00)
Exide (PAK)	Rs 9.00	Island Textile	Rs (47.50)
Philip Morris Pak.	Rs 8.50	UniLever Pak	Rs (41.82)
Murree Brewery	Rs 7.52	MithchellsFruit	Rs (15.99)
Gillette Pak	Rs 7.13	Shield Corporation	Rs (6.85)

Stocks soar to all-time high at 18,074

KARACHI, Feb 22: The stocks roared higher on Karachi Stock Exchange so as to easily crash through the KSE-100 index barrier of 18,000 points. The index jumped 153.25 points to close at 18,074.27 on Friday.
Led by Engro, MCB Bank and telecoms, all hitting their ‘upper circuit’, the market turned north after an initial extension of the previous day’s decline.
The significant feature of the day’s trading was the non-participation by oil and gas stocks. The heavyweight OGDC remained quiet with a small gain of 48 paisa, contributing at most 10 points to the index rise. Yet, addition of Rs10.94 to the price of MCB Bank stock accounted for almost half of the day’s gains.
Stock brokers, traders and investors celebrated the index rise to another historic high.
One of the leading brokers, Aqeel Karim Dhedhi (AKD) said he was scarcely surprised. “The Pakistan equity market has great potential and there is a long way to go before reaching the cliff,” he said. AKD believed that the healthy corporate earnings and interest rate decline had rejuvenated investor confidence in the market.
Sector-wise, he said, the Oil and Gas sector was benefiting after acceleration in the E&P activities; textiles had benefited from low cotton prices, EU concessions and devaluation of the rupee.
Banks were reporting robust profitability with both textile and banks able to reduce financial charges and bad debts, fertiliser production was set to rise following the solution of gas issues, cements were gaining from increased utilised capacities and higher prices as construction activities pick up pace.
Healthy earnings growth had seen pharmaceutical companies trading at high double digit multiples. Broker AKD said that the Pakistani stocks were currently at multiple of 7 times the forward earnings, which was substantially lower than 9.5 per cent discount rates.
CEO at Topline Securities, Mohammad Sohail said that the index had managed to cross the psychological level of 18,000 points due to continuous buying by foreign fund managers in recent days. He noted that the volumes remained hefty, with the investors focus on telecom stocks due to positive news flow.
Slight correction was, however, witnessed in the oil stocks due to falling international oil prices.
Foreign investors bought shares of the value of $1.9 million on Friday, compared to hefty purchases of $4 million worth stocks on Thursday. The day’s inflow increased the total net buying by foreign funds and individuals for the month to $24.34 million.
Volume increased to 369 million shares on Friday, from 350 million shares traded the previous day. Market
capitalisation scaled to Rs4.492 trillion, from Rs4.465 trillion on Thursday. Trading value also increased to Rs9.4bn, from Rs8.6 billion.
The market capitalisation based KSE-30 index rose by 144.81 points to 14,814.06 points.
In all 365 stocks came up for trading with 208 gainers and 141 losers. The highest gain for the day, amounting to Rs10.94 was noted in MCB Bank, which closed at Rs230.23. On the active list, telecom stocks lead the rally following the Supreme Court ruling against High Court orders on International Clearing House deal raising higher earnings outlook on LDI revenues.
WorldCall Telecom saw highest business in 46 m shares, the stock up by 14 paisa to Rs3.84. Telecard finished ‘limit up’ by addition of Re1 to Rs7.10 on 32m shares; PTCL also hit the ‘upper circuit’, gaining Rs1.14 to Rs23.97 on 30m shares.
TRG Pakistan added 25 paisa to Rs8.28 on 26m shares; Maple Leaf Cement gained 53 paisa to Rs18.94 on 23m shares; Wateen Telecom edged higher by 9 paisa to Rs4.12 on 20m shares; Fauji Cement was up by 14 paisa to Rs7.98 on 20m shares; Jah Sidd Co declined by 26 paisa to Rs18.62 on 15m shares; Nishat Mills recorded sharp gains of Rs3.33 to Rs72.36 on 13m shares and Engro Corporation saw maximum day’s gain of Rs5.16 to Rs108.41 on 12m shares.
KSE-100 index gains 159.25 points: KARACHI: Karachi Stock Exhcnage (KSE) closed higher on Friday after the index crossed 18,000 points, boosted by buying from foreign fund managers in the last few days.

The KSE benchmark 100-share index ended 0.86 percent, or 153.25 points, higher at 18,074.27.

Around 370 million shares were traded, mostly in telecoms companies. Both Pakistan Telecommunication Corporation and Engro Corporation closed at their upper limit.

Their stocks were boosted by news that the courts had approved a rise in international call rates and that the Engro would receive a steady gas supply. Pakistan suffers from chronic gas and electricity shortages.

Some correction was witnessed in oil stocks due to falling international oil prices, said equity dealer Samar Iqbal at Topline Securities.

World Call Telecom rose 2.7 percent to 3.80 rupees and Pakistan Telecommunication Corporation rose 4.99 percent to 23.97 rupees.

In the currency market, the rupee ended at 98.06/98.12 against the dollar, stronger than Thursday's close of 98.13/98.18.

Overnight rates in the money market rose to 9 percent from Thursday close of 8.50 percent.

 Company News:

SNGPL profits turn into loss: ISLAMABAD, Feb 22: Marred by huge system losses, theft and extension of gas connection on political considerations, the Sui Northern Gas Pipelines Limited (SNGPL) has reported to the government that its 17.5 per cent guaranteed rate of return has turned into a 7.06 per cent loss owing to recent decisions of the Lahore High Court and the Oil and Gas Regulatory Authority.
In a letter to the federal government, SNGPL’s managing director Arif Hameed said the returns on average fixed assets of the company for fiscal year 2011-12 have declined to a negative 7.06 per cent instead of guaranteed 17.5 per cent profit under its licence.
He said Ogra did not take into consideration the fact that despite increasing unaccounted for gas (UFG) from 4.5 per cent to 7 per cent and including late payment surcharge as on operating income in pursuance of SNGPL’s petition and stay order granted by the Lahore High Court, “the company managed to earn 4.68 per cent return on its average fixed assets as compared to 17.5 per cent guaranteed as per licence issued to it.”
The SNGPL is a public limited company listed at all three stock exchanges of Pakistan.
Although the major shareholding of nearly 54 per cent was held by the government of Pakistan, almost 46 per cent stake is held by private shareholders.
“These shareholders have made huge investments for which they expect the company to earn profit and declare dividends”, said Mr Hameed.
He said when company announced dividend on Feb 13, it had earned profit of Rs3.044 billion, a majority of which was stilled retained even after announcing the cash dividend.
A subsequent decision on Feb 15, 2013 by the Lahore High Court dismissing SNGPL’s petition (that sought to allow 7 per cent system losses) resulted in a huge loss of Rs8.36 billion (after tax) wiping out almost 65 per cent of the retained earnings accumulated by the company over the years.
“It is pertinent to mention that as a result of this decision, the return on average fixed assets of the company for the year 2011-12 declined from 4.68 per cent to a loss of 7.06 per cent”, the managing director of the SNGPL said.
Early this month, the Ogra had rejected a demand of the petroleum ministry to increase gas tariff for all consumers by about Rs10 per unit by treating Rs11 billion worth of gas theft, pilferage and non-recovery of un-metered gas as gas sales.
The Ogra determination was subject to a case pending before the LHC under which the Ogra had been stopped from reducing the UFG losses to 4.5 per cent from 7 per cent.
Under a 2005 agreement between the Ogra and gas companies, a gradual UFG reduction programme was put in place that required the two gas utilities to bring down their UFG losses from about 11 per cent to 4.5 per cent in 2011. The gas companies, however, failed to meet these targets and their UFG still goes beyond 10 per cent.
On top of that, the utilities wanted the Ogra to recover the cost of gas theft and losses in areas affected by law and order situation from consumers throughout the country and allow certain quantities of unmetered gas from all consumers.
This was not acceptable to Ogra that had come under scrutiny before the Supreme Court of Pakistan in a Rs82 billion Ogra corruption case.

MOHAMMED SALEEM MANSOORI