5
Thursday, January 20, 2011
South East Asian stocks
European shares retreat from highs; miners slide
Inflation worries make investors more selective
KSE-100 Index Opening Closing Change % Change Turnover (mn)
MPS doubts deal KSE a hefty blow
12,658.16 12,577.61 80.55 0.64 188.01
LSE-25 Index Opening Closing Change % Change Turnover (mn)
3,953.47 3,936.12 17.35 0.44 7.48
ISE-10 Index Opening Closing Change % Change Turnover (mn)
3,135.46 3,107.52 27.94 0.89 0.11
Nawaz Ali
Major Gainers
Close
Change
ULEVER 4,577.17 NESTLE 2,825.67 IDYM 194.95 TRIPF 140.12 SAPL 155.75
Symbol
72.88 18.96 6.94 6.62 5.60
Major Losers
Symbol
Close
Change
RMPL 2,182.60 WYETH 984.25 SIEM 1,210.74 UPFL 1,160.00 COLG 991.40
-72.4 -30.75 -28.03 -26.67 -16.78
Top 5 Volume Leaders
Symbol
Close Vol (mn)
LOTPTA FFBL PTC NML DGKC
16.19 42.14 20.03 71.23 30.20
45.77 15.76 12.55 12.45 7.32
Active Issues Plus Minus Unchanged
140 235 22
Sector Updates FERTILISER 000 tonnes
Urea Offtake (Jan to Nov 10) 5,463 Urea Offtake (Nov 10) 845 Urea Price (Rs/50 kg) 870 DAP Offtake (Jan to Nov 09) 121 DAP Offtake (Nov 10) 152 DAP Price (Rs/50 kg) 3,137
AUTOMOBILE ASSEMBLER PAK SUZUKI MOTOR Units Production (July 10 to Nov 10) Sales (July 10 to Nov 10) Production (Nov 10) Sales (Nov 10)
33,929 32,092 7,087 6,813
INDUS MOTOR CO Production (July 10 to Nov 10) 20,987 Sales (July 10 to Nov 10) 20,375 Production (Nov 10) 3,974 Sales (Nov 10) 3,753
HONDA ATLAS CAR Production (July 10 to Nov 10)6,626 Sales (July 10 to Nov 10) 6,247 Production (Nov 10) 1,145 Sales (Nov 10) 1,075
DEWAN FAROOQ MOTORS Production (July 10 to Nov 10) 186 Sales (July 10 to Nov 10) 70 Production (Nov 10) 0 Sales (Nov 10) 0
BANKING SECTOR Scheduled bank (Rs in mn) Deposit (December 3,10) 4,824,464 Advances (December 3,10) 3,050,639 Investments (December 3,10) 1,916,917 Spread (October 10) 7.49%
OIL MARKETING CO (000 tons) MS (Jul 10 to Nov 10) MS (Nov 10) Kerosene (Jul 10 to Nov 10) Kerosene (Nov 10) JP (Jul 10 to Nov 10) JP (Nov 10) HSD (Jul 10 to Nov 10) HSD (Nov 10) LDO (Jul 10 to Nov 10)) LDO (Nov 10) Fuel Oil (Jul 10 to Nov 10) Fuel Oil (Nov 10) Others (Jul 10 to Nov 10) Others (Nov 10)
PRICES (Ex-Refinery) MS (1 Dec 10) MS (1 Nov 10) MS % Chg Kerosene (1 Dec 10) Kerosene (1 Nov 10) Kerosene % Chg JP-1 (1 Dec 10) JP-1 (1 Nov 10) JP-1 % Chg HSD (1 Dec 10) HSD (1 Nov 10) HSD % Chg LDO (1 Dec 10) LDO (1 Nov 10) LDO % Chg Fuel Oil (1 Dec 10) Fuel Oil (1 Nov 10)
932 186 66 12 589 124 2,792 612 26 4 3,641 572 3 1
Rs 45.15 44.53 1.39% 52.04 51.25 1.54% 52.27 51.48 1.53% 55.20 54.24 1.77% 50.52 49.51 2.04% 43,019 42,046
MUMBAI: Sharad Pawar (C), president of the International Cricket Council (ICC), ICC chief executive Haroon Lorgart (2nd R), and ICC 2011 World Cup director Ratnakar Shetty (2nd L) pose with the 2011 World Cup trophy during a function at the Bombay Stock Exchange.-Reuters
China, HK stocks up on inflation-fall talk HONG KONG/SHANGHAI: Shares in China and Hong Kong rose on Wednesday in relatively healthy turnover as investors scooped up companies most likely to benefit from a global economic recovery. China's key stock index closed up 1.8 per cent, supported by a report that showed consumer inflation eased in December from a recent peak in November, traders said. While the figure was not a surprise since December CPI for last year was high compared with 2009, some investors took signs of easing inflation as cue to hunt for bargains after the market's steep falls earlier this week. China is scheduled to publish the numbers at 0200 GMT on Thursday. The rising mainland market lifted Hong Kong's Hang Seng index 1.1 per cent, with
Banks, miners hit FTSE LONDON: Banking and mining stocks weighed on Britain's top share index on Wednesday as concerns over the global economic recovery resurfaced, while sentiment among retailers was dented after some disappointing updates. The FTSE 100 closed down 79.73 points, or 1.3 per cent lower at 5,976.70, ebbing away from Tuesday's fresh 31-month high. "The market moved a long way ahead of the last quarter and it deserves a bit of a pull back," Paul Kavanagh, a partner at Killik & Co, said. Kavanagh said there was still appetite to get involved in this market with short term investors enjoying the fluctuations, but longer term investors are lingering on the sidelines waiting to get involved lower down than 6,000. Optimism over corporate earnings took a knock after US banking giant Goldman Sachs posted a decline in quarterly profit, which followed Citigroup missing estimates on Tuesday. UK Banks fell on talk out of Germany, which has been denied, that Greece's debt may have to be restructured, traders said. Barclays fell 3.8 per cent. London-listed miners such as Lonmin , down 3.2 per cent, were lower along with metals after economic data from the United States and ahead of a raft of key Chinese economic data due to be released early on See # 9 Page 11
cyclical shares such as shippers and metal producers, whose profits are closely linked with rising economic activity, outperforming the broader market. "The market was repairing itself after a heavy loss earlier this week, with the leaked CPI figure maintaining the momentum in the afternoon," said Guo Yanling, a senior trader at Shanghai Securities. "But the index may have little potential to rise sharply amid an inflationary environment." Inflation is seen as a key risk for Chinese as well as most Asian markets this year with the recent escalation in global food and crop prices putting policymakers on the back foot and increasing the risk of rising interest rates. Still, investors encouraged by broadly positive US earnings and economic data have contin-
ued to put money into North Asian markets which were significantly outpaced in 2010 by their smaller southern peers such as Indonesia and Thailand. A drop in the dollar to a twomonth low lifted crude oil prices to near $92 per barrel. China Mobile Ltd , a major laggard among the large caps in Hong Kong, rose 2.6 per cent and provided the biggest boost to the Hang Seng Index on the day. The benchmark Shanghai Composite Index finished at 2,758.1 points and appeared to have found firm support at the crucial 2,700-point level after digesting the news of the latest official hike in bank reserve requirement ratios. The index was up 1.1 per cent by midday as traders reported cash flowing into the stock market from the weak bond market.-Reuters
Nikkei up on earnings hopes TOKYO: The Nikkei average rose for a third straight session on Wednesday, inching towards recent eight-month highs as a mostly upbeat start to the US earnings season lifted expectations for Japanese firms to show further recovery. Target price hikes for Google and earth-moving equipment maker Caterpillar have bolstered hopes that the world's No1 economy is on a sustainable recovery path and sent US stocks higher, despite weak results from Citigroup. The Nikkei has climbed 3 per cent this year and is up 15 per cent since the start of November after many foreign investors changed their stance on laggard Japanese stocks to neutral from underweight. Analysts said such a buying pattern was behind Wednesday's surge in textiles, which outperformed other sectors with a rise of 3.1 per cent helped by an across-the-board hike in share price targets by Goldman Sachs on attractive valuations. Toray Industries Inc, Japan's largest maker of synthetic fibres, jumped 4.7 per cent to 556 yen and Teijin Ltd surged 6.6 per cent to 421 yen, becoming the biggest per centage gainer among the Nikkei 225 components. "But advances in the whole index are limited as investors consolidate around new levels and slowly brace for a small correction, which may be trig-
gered once all positive factors linked to robust earnings disappear after companies have reported later this month." The benchmark Nikkei ended the day up 0.4 per cent or 38.12 points at 10,557.10. Resistance now looms at 10,620.57, an eight-month peak marked last week, market players said. If that level is breached, the next target investors are eyeing is 10,638.23, a high hit in May last year. The broader Topix index rose 0.6 per cent to 936.87. With individual investors actively buying, trading volume was firm, with 2.2 billion shares changing hands on the Tokyo Stock Exchange's first section, slightly below last week's average of 2.3 billion. Market participants said foreign buying is set to continue on expectations Japanese companies will show further improvements in their OctoberDecember earnings, but also stressed that earnings are still well below levels from before the financial crisis. Social network and gaming company Gree was up 3.4 per cent at 1,174 yen after announcing on Tuesday it would go into the smartphone ad network business, connecting advertisers with websites that want to run advertisements. Advancing issues outpaced declining ones by a ratio of about 2 to 1.-Reuters
US stocks late-morning
Goldman takes toll on S&P, Nasdaq NEW YORK: US stocks mostly fell on Wednesday as disappointing results from Goldman Sachs and Wells Fargo deflated hopes for strong bank earnings in the last quarter. The Nasdaq declined more than 1 per cent as more disappointment on the earnings front came from Cree Inc. It pushed an index of semiconductors down 1.7 per cent. Goldman Sachs Group Inc's stock fell 2.8 per cent to $169.83 after the Wall Street firm posted a 53 per cent drop in profit as trading revenue tumbled. Shares of Wells Fargo & Co lost 1.7 per cent to $31.93 after the company posted a fourthquarter profit that missed some analysts' estimates. With financials, "I think expectations were for some better results after a fairly robust fourth quarter and start to 2011," said Thomas Villalta, portfolio manager for Jones Villalta Asset Management in Austin, Texas. See # 8 Page 11
KARACHI: Selling over uncertain upcoming monetary policy and non-stop profit-taking bled Karachi Stock Exchange big time on Wednesday. Offloading in oil, banking and fertiliser stocks did the real damage. The benchmark KSE 100Index fell by 80 points to close at 12,577 points, KSE 30-Index lost 92 points to close at 12,325 points and KSE All-Share index was down by 52 points to close at 8,721 points. "Selling pressure from local investors kept index depressed throughout the session", said Samar Iqbal, equity dealer at Topline Securities. Volumes also remained low with mid-cap stocks leading the rally. On the contrary POL increased by more than 1% on the back of the news regarding increased production in Tal
Block where POL is the major beneficiary, he added. About 188 million shares were traded in the overall market which is 82.8 million shares less as compared to a turnover of 270.8 million a day earlier. Foreigners' participation too was limited as according to NCCPL there was a netforeign buying of $0.71 million on Wednesday. Trade began on a positive note and index stayed in the green zone in the first hour of trade where it touched an intraday high at 12,733 points (+ve 75 points). However, thereafter, continued profit-taking by the local investors ejected early gains and index went into bearish territory. It then remained mainly in the negative zone till the end of the session due to selling in oil, banking and fertiliser stocks and near closing bells touched its lowest level of the day at See # 10 Page 11
Indian shares fall; tech stocks down MUMBAI: The BSE Sensex shed 0.6 per cent on Wednesday, led by a decline in software companies, while outlook remained shaky on interest rate hike concerns. IT stocks led the decline, with the sector index dropping 1.2 per cent after rising 4.4 per cent over the previous two sessions. Leading outsourcers Tata Consultancy Services, Infosys and Wipro declined between 0.6 per cent and nearly 2 per cent. Bajaj Auto, second-largest two-wheeler maker, closed up nearly 2 per cent, as it posted a 40 per cent rise in its third-
quarter net profit. The 30-share BSE index declined 113.73 points to 18,978.32, with 21 of its components declining. "I think market will stay volatile for now," said Nitin Rakesh, CEO of Motilal Oswal's asset management business. "We have some near-term issues to address like inflation pressures, high commodity prices and so on." Investors were also cautious ahead of a cabinet reshuffle in the Indian government. See # 7 Page 11
ANNOUNCEMENTS Company Mirza SugarSPOT Pangrio SugarSPOT
Period 1st Qtr 1st Qtr
Div/Bon/Right -
PAT (Rs in mn) -11.80 -2.33
EPS(Rs) -0.84 -0.21
Dhiyan
RED ALERT! Salman Naqvi, Head of Sales Aba Ali Habib Securities Correction might continue however it wouldn't be a major one as index may decline by just 50-100 points. Thereafter market would resume bullish activities due to higher international oil prices, hopes of better corporate results, and foreign interest. The only threat to the market which can re-invite correction is the increase in interest rates. Adopt 'buy on dips' stance and invest in oil, fertiliser and power sectors. They can also invest in selective stocks of banking and cement sectors. Market might open negative today but it would recover later on.
Muhammad Ahsan Rasheed, Director Research & Marketing AMJ Growth Current political uncertainty and overbought levels of bluechips are propelling investors to book profits. A rebound is expected at 12,516 level, however if index breaches 12,516 level barrier then it can fall down to 12,436 points. Investors should take positions with stop loss and follow 'sell on strength' strategy. Invest in fertiliser and oil stocks close to their result announcements. Corporate results, launch of MTS and no change in key interest rate would prove trade-triggers. Market outlook is negative for today.