STOCK MARKET UPDATE: 09.05.2013

STOCKS

Karachi Stocks Up 209.81 Points:
KARACHI, May 08: At the close of trading, the KSE-100 index was at 19472.55, up 209.81 points. 

(Today 9^th April- Market is 199.60 Up@ 11.16 am)

08 May,2013

5 TOP GAINERS  &  LOOSERS:

Shezan Int’l	Rs 30.60	Nestle Pak	Rs (250.00)
Exide Pak	Rs 21.75	Rafhan Maize	Rs (233.90)
Indus Dyeing	Rs 18.20	Wyeth Pak	Rs (77.10)
Murree Brewery	Rs 16.07	Bata Pak	Rs (60.00)
Colgate Palmolive	Rs 15.00	Island Textile	Rs (28.00)

Stocks stage rally of 209 points

KARACHI, May 8: A surprise strong rally triggered and led by foreign investors saw the KSE-100 index climb by staggering 209.81 points or 1.09 per cent to close at 19,472.55 points on Wednesday.
When the foreign funds enter to buy, they usually prefer stocks that promise high growth, high yield. The top tier scrips across the board, therefore, were in demand which generated healthy volumes.
The figures released by the National Clearing Company of Pakistan showed foreign portfolio inflow at a massive $13.92 million on Wednesday. Keeping aside a big portion emanating from the Unilever Overseas buyback of shares in Unilever Pakistan, the foreign fund investment into Pakistan equity market was about the highest seen in recent days.
Analysts attributed the foreigners’ interest generally to their penchant for Asian markets and particularly to a possible sense of settling down of matters, political and economic in Pakistan. “So near to the elections, foreign funds may be confident of political change, which would put into power an investment-friendly government,” said a market participant.
He pointed out that though the buying was across the board, the foreign fund managers were careful to pick stocks, which they believe were attractive at current values.
Oil and gas, cement, textiles and banks saw the greatest amount of activity. The trading value of shares on Wednesday also shot to Rs9.247 billion, which represented increase of Rs3.972bn over the earlier day’s trading value at Rs5.276bn.
The local investors meanwhile showed a bit of nervousness with most groups deciding to take profit and sail through the elections. Except for the mutual funds which bought $1.53 million worth stocks to balance their portfolio, the rest of the participants took to sales.
Companies offloaded stocks worth $1.45 million and banks $2.31 million. Individual retail and weak holders cleared the decks with heavy sale of $6.14 million worth stocks. They were however able to secure good capital gains on offloading at peak prices, which pulled the index from its high at 19,515.94 points.
Since the buying spree continued all through the day the index low was the earlier day’s closing at 19,262.74 points.
Fahad M. Ali at brokerage JS Global affirmed that bulls were completely in charge at the bourse on Wednesday. DGKC, NML and MCB Bank outperformed the market closing after a gain of 4.8pc, 3.7pc and 3.3pc respectively. Most of the local institutions in the market maintained a wait and watch approach.
Samar Iqbal, manager equity sales at Topline Securities stated that traded value crossed Rs.9bn mark with renewed interest in large cap stocks like Engro, PPL, OGDC, DGKC and PTC. Investors appeared confident that the election process and the formation of new government would not pose any major risk, analysts said.
In the aggregate, 395 stocks came up for trading on Wednesday with gainers at 209, leading losers at 158 by a wide margin. Turnover rose to 252 million shares, from 173 million shares traded on Tuesday. Market capitalisation saw addition of Rs32bn to Rs4.803 trillion, from Rs4.771tr.
Among the volume leaders were Fauji Cement with 54m shares up by 11 paisa to Rs10.05, TRG Pakistan down 90 paisa to Rs8.78 on 21m shares, D.G. Khan Cement posting hefty gains of Rs3.26 to Rs71.20 on 9m shares, Engro Corporation up by Rs1.98 to Rs137.01, PTCL higher by 51 paisa to Rs18.12 on 6m shares, NBP up by 22 paisa to Rs39.03 on 6m shares, Nishat
(Chunian) stronger by Rs1.72 to Rs49.69 on 5m shares and the loss-making PIA down by 54 paisa to Rs4.61 on 5m shares.

MOHAMMED SALEEM MANSOORI

STOCK MARKET UPDATE: 08.05.2013

STOCKS

Karachi Stocks Up 6.04 Points:
KARACHI, May 07: At the close of trading, the KSE-100 index was at 19262.74, up 6.04 points.

(Today 8^th April- Market is 152.25 Up@ 10.37 am)

Equities manage modest gains

KARACHI, May 7: The stock market closed flat with a token gain of 6.04 points to settle at 19,262.74 points. The market seemed to be making efforts to close positive, though several indicators suggested that investor attitude was fast changing to ‘wait and watch’ in the face of frenzied campaigns for the elections, which are only four days away.
The contribution of 50 points by the two heaviest weighted stocks in the index, OGDC and MCB Bank, supported the index from tumbling into the red.
Unlike Monday, the stocks could climb only 36 points above the earlier day’s close to the high at 19,298 points but dipped by 94 points to intra-day low at 19,169.13 points.
The fact that some big ticket heavy-weighted index shares were major contributors was also seen in the steep decline in trading value of shares by Rs1.812 billion for the day to Rs5.256 billion, from Rs7.088bn the previous day. It was despite the increase in trading volume to 173 million shares from 137 million shares.
The positive closing also seemed deceptive since out of the 371 shares traded on Tuesday, the losers at 213 were way ahead of the gainers at 131 stocks.
Figures released by the National Clearing Company of Pakistan showed that almost all local investors continued to book profit. Companies made net sale of $4.74 million worth. Banks sold $2.78 million, mutual funds $1.58 million and individuals $0.68 million worth stocks.
‘Other organisations’ bought shares valued at $2.09 million. Foreign inflow on Tuesday was again in the hefty sum of $7.68 million with the bigger contribution from Lever Overseas as the foreign parent continues to mop up shares held by other shareholders in the company’s Pakistani subsidiary, Unilever Pakistan.
Analyst Veer Bajaj at JS Global observed that after a positive start, the KSE-100 index continued its intraday correction and index consolidated above the 19,000 mark with low volumes witnessed in blue chip stocks.
On the political front the picture remained gloomy and shaky ahead of the coming elections. Value buying was observed in banking and insurance sectors with MCB, UBL, SNBL, NBP and AICL being picks of investors.
Investors also showed some interest in PPL on news of its expansion as the stock gained one per cent. Volumes were also registered in third tier stocks. Ahsan Mehanti at Arif Habib Corp stated that sentiments remained positive though trading was thin post major quarter earning announcements.
Renewed foreign interest and release of funds for PSO to ease circular debt in energy sector were positive despite concerns for $600m IMF repayments in May.
On the equity sales desk of Topline Securities, Samar Iqbal commented that in the absence of any trigger, market continued to consolidate ahead of general elections.
Renewed buying interest was seen in Fauji Cement amid expectation of better earnings due to debt swap. OGDC and PPL also remained on investors’ radar.
Market capitalisation decreased by Rs4 billion to Rs4.771 trillion on Tuesday, from Rs4.775 trillion the previous day.
Fauji Cement led the volume leaders with 62 million shares, traded 93 paisa up to Rs9.94. TRG Pakistan shed 26 paisa to Rs9.68 on 11m shares; Jah Sidd Co was down by 54 paisa to Rs10.48 on 6m shares.
Engro Corporation slipped 4 paisa to Rs135.03 on 6m shares, Soneri Bank added 13 paisa to Rs7.10 on 5m shares, Maple Leaf Cement declined 23 paisa to Rs18.27 on 5m shares, NBP was up by 19 paisa to Rs38.81 on 4m shares, Adamjee Insurance jumped by Rs3.20 to Rs82.49 on 4m shares PTCL down 26 paisa to Rs 17.61 on 3m shares and Lafarge Pak Cement gained 21 paisa to Rs6.30 on 3m shares.

Company News:

PSO again facing payment default: ISLAMABAD, May 7: With fuel stocks at power houses down to a critical two-day requirement, the country’s largest fuel supplier —Pakistan State Oil — has faced a total of nine defaults on international payments because of serious financial crunch.
An official said that diesel consumption dropped by over 7 per cent in the last two months, suggesting a slowing down in overall economic activities, except for agriculture sector even though a bumper wheat crop was expected this season.
A senior official said a furnace oil shipment due on May 5 was cancelled at the last moment because no bank was ready to open LC (letter of credit).
Another ship-load of furnace oil has been ordered to arrive on May 9 following disbursement of Rs10 billion by the federal government on the directives of the caretaker prime minister to ensure smooth supply on the three days around election-day.
“Even though oil and gas sector receivables against power sector have gone beyond Rs435bn, we are under strict instructions to ensure smooth fuel supplies for elections,” said a senior petroleum ministry official.
“The PSO has technically defaulted on international payments for nine times since August 2012,” he said, adding the bigger challenge is that a future default could lead to serious complications for the country because PSO handles more than 65pc of Pakistan’s fuel requirements. As a result, PSO has been forced to increase fuel supply to the power system to 20,000 tonnes per day from previous supply of 16,000 tonnes per day until Sunday.
The power sector owed Rs135bn to the PSO and another Rs300bn to the natural gas companies as of Tuesday, an official said.
The latest Rs10bn disbursements to PSO were overdue at the start of April after which fuel supplies worth Rs10bn had been provided to the power sector.
While discussing poor recoveries from the power sector, a recent meeting was informed that system losses at Sukkur and Hyderabad Electric Power Companies had gone beyond 39 and 32pc, respectively, and nobody could question their chief executives because of their close relationship with former ministers of the PPP government.
As of May 7, PSO’s total fuel stocks stood at 10 days of requirement that was expected to slightly improve when a fresh shipment arrived on May 9.
However, all the power stations have an average of two-day of fuel stocks.
He said the PSO had refused to continue with fuel supplies because of non-payments but was prevailed upon to take another brunt in the national interest to ensure smooth supplies for elections.
When contacted, PSO’s spokesperson Maryam Shah said a furnace oil shipment of 70,000 tonnes was due on May 9 that would be sufficient to meet country’s power requirement for election period. She said the company also had sufficient stocks of diesel and petrol for retail sales to meet market demand for 15 and 10 days requirement.
She said the PSO’s total receivables had gone beyond Rs149.7bn on May 7, including Rs139.5bn against power sector.
As a consequence, PSO’s payables to international supplies have exceeded Rs83bn and another Rs29bn to domestic refineries.
Responding to a question on oil cargo cancellation, she said “no cargo has been cancelled by PSO so far. However, due to letter of credit confirmation issue, one of the cargo of furnace oil which was due on May 5 has been delayed.”
Regarding international defaults, she confirmed defaults but added: “we would clarify that it were due to technical issues in letters of credit that have resulted in delayed payments to international suppliers approximately nine times since August 2012.
These issues arise due to non-payments of power sector.”
Despite financial constraints, PSO has always worked hard to meet the energy needs of the country. However, payments from our customers, especially power entities are required in a streamlined manner so that we may sustain the supply chain and continue imports, she concluded.

MOHAMMED SALEEM MANSOORI

KARACHI STOCK EXCHANGE-DAILY MARKET TREND: STOCK MARKET UPDATE: 07.05.2013

KARACHI STOCK EXCHANGE-DAILY MARKET TREND: STOCK MARKET UPDATE: 07.05.2013: STOCKS Karachi Stocks Up  30.07  Points: KARACHI, May 06: At the close of trading, the KSE-100 index was at 19256.70, up  30.07  ...

STOCK MARKET UPDATE: 07.05.2013

STOCKS

Karachi Stocks Up 30.07 Points:
KARACHI, May 06: At the close of trading, the KSE-100 index was at 19256.70, up 30.07 points. 

 (Today 7^th April- Market is 79.99 Down@ 10.40 am)

May 06, 2013

 5 TOP GAINERS  &  LOOSERS:

Nestle Pak.	Rs 167.50	Bata (Pak)	Rs (100.00)
Colgate Palmolive	Rs 80.00	Wyeth Pak Ltd	Rs (65.42)
Siemens Pakistan	Rs 32.13	Island Textile	Rs (35.00)
Shezan Inter.	Rs 27.75	Clariant PaK.	Rs (17.00)
MithchellsFruit	Rs 20.27	Pak Services	Rs (12.45)

Karachi Stocks gain despite profit-taking

KARACHI, May 6: The KSE-100 index closed with measly gains of 30 points at 19,256.70 points on Monday. Although it represented a new high, the index retreated on extensive late session profit-taking, from the early morning heavy gains of 220 points, which had carried the benchmark to the day’s highest at 19,445.27 points.
While the third-tier stock took a back seat, the high valued stocks were in the forefront of trading on Monday, which represented that retail investors and weak holders had moved to the sidelines.
The fact that institutional investors also decided to book profit showed their nervousness ahead of the elections on Saturday. Most were fearful as uncertainty over the law and order situation had deepened.
A report released by the Topline Securities calculated that the local bourse has rallied 11pc during the past three months. It was stated to be line with past trends when the Pakistan markets had gained on average 12pc in three months before elections in the last two decades.
“This time foreign funds have also played a key role as they have invested approximately $85m (excluding Unilever buyback inflows) in the past three months”, analysts affirmed.
Regarding the Monday’s trend, analyst Mujtaba Barakzai at JS Global stated that the KSE-100 index had made a new intraday high of 19,444 fueled by fresh buying in PPL (with the news of expansion strategies). The market also witnessed foreign interest in heavyweight, OGDC.
Also the fertiliser stocks, FFC with good dividend yield, and Engro on the basis of gas allocation were among the investors’ favourites for the day. The figures released by the National Clearing Company of Pakistan showed that the buyers on Monday were just the foreign funds which poured in $8.78 million.
The overwhelming part of the sum, however, represented the inflow of funds from Unilever Overseas, as the company continues to buy-back stocks held by other investors. Other than that, all local individual and institutional investors were ‘net sellers’ for the day with Companies offloading stocks worth $1.29 million; banks selling off shares of the value of $1.26 million; Mutual funds also trimming portfolio by $1.09 million, after several day’s of net buy.
Individuals sold $1.79 and ‘other organisations’ $1.79 million worth stock. The market capitalization based KSE-30 index was up by 16.90 points to 14,814.62 points.
Turnover improved to 137 million shares on Monday, from 136 million shares traded the previous Friday. Trading value increased to Rs7.088 billion, from Rs6.707 billion. Market capitalisation saw addition of Rs23 billion to Rs4.775 trillion, from Rs4.752 trillion.
The two biggest gainers for the day were Nestle Pakistan up by Rs167.50 to Rs7150, followed by Colgate Palmolive higher by Rs80 to Rs2090.
Among the 393 stocks that came up for trading on Monday, the gainers and losers were even at 189 each.
On the ten volume leaders’ list, Fauji Cement saw trading in 11m shares, up by 4 paisa to Rs9.01, International Steel gained 88 paisa to Rs17.48 on 8m shares.
Engro Corporation climbed by Rs1.50 to Rs135.07 on 8m shares, TRG Pakistan shed 10 paisa to Rs9.94 on 5m shares, Dawood Hercules added 77 paisa to Friday’s hefty gains and closed at Rs59.02 on 5m shares, PTCL was up by 16 paisa to Rs17.87 on 5m shares, Pakistan Petroleum jumped by Rs4.52 to Rs194.98 on 4m shares.
Lotte Capital slipped 15 paisa to Rs7.55 on 4m shares, Maple Leaf Cement slid 20 paisa to Rs18.50 on 4m shares and Dewan Motors added 25 paisa to Rs3.35 on 4m shares.
KSE 100-share Index up 30 points: KARACHI: Stock prices witnessed gains at Karachi Stock Exchange (KSE) on the opening day of the week over expectations of general elections to be held as per the schedule on May 11.

The benchmark KSE 100-share Index closed 30 points up to 19256.70 at market close on Monday.

The market opened in the green zone and at one stage it was seen hovering around 200 points up. However, the intra-day correction took away a major chunk of positive gains, leaving the main Index with 30 points up.

According to stock market analysts the capital market is upbeat over timely holding of general elections 2013. The stock traders and investors are hoping to see improvement in law and order besides foreign capital flowing into the country after the forthcoming polls.

Company News:

Meezan Bank: KARACHI: Meezan Bank on Monday announced plans to launch branchless banking services in Pakistan.
In this regard Meezan Bank has signed a memorandum of understanding with Monet and Warid Telecom as partners for the rollout of this initiative that will allow people who do not have access to financial services to avail Islamic banking services.

MOHAMMED SALEEM MANSOORI