Market Portfolio (18 - 22 FEB)

Reasons for having a bullish trend on KSE-100 Index on 22nd February 2013:

The Karachi Stock Exchange's benchmark 100-share Index on Friday closed above 18,000 points for the first time in the country's history boosted by foreign buyers during the week.

Giving impetus to investor sentiment, the KSE-100 Index reached the 18,083.94 mark on reports that the courts had approved a rise in international call rates and that ENGRO would be ensured supply of gas. Healthy corporate earnings also helped keep the market buoyant. The rupee ended stronger at 98.06/98.12 against the dollar, than Thursday's close of 98.13/98.18. The money market rose to 9 per cent closing at 8.50 per cent on Thursday. Around 370 million shares were traded, mostly in telecoms companies. Both Pakistan Telecommunication Corporation and Engro Corporation closed at their upper limit. World Call Telecom rose 2.7 percent to 3.80 rupees and Pakistan Telecommunication Corporation rose 4.99 percent to 23.97 rupees. Foreign investors bought a hefty $4 million worth stocks on Thursday, up from net purchases of $1.77 million on Wednesday, bringing the total net buying for the month to $22.44 million. Among locals, companies made net purchases of $2.30 million, while Banks sold $2.27 million and mutual funds $3.38 million worth equity.

The biggest gainers for the day were UniLever Pakistan, up by Rs201.40 to Rs10,560 followed by Colgate Palmolive higher by Rs25 to Rs1,600. Major losses were noted in Bata (Pak) down by Rs30 to Rs1,450 and Indus Dyeing lower by Rs15.71 to Rs433. Four of the ten-top active issues represented the telecom sector. WorldCall Telecom posted the highest volume of 55m shares, up by 59 paisa to Rs3.70. PTCL was limit up by Rs1.08 to Rs22.83 on 42m shares; Telecard Limited also closed at upper circuit with addition of Re1 to Rs6.10 on 30m shares. Jah Sidd Co increased by 58 paisa to Rs18.88 on 33m shares, Maple Leaf Cement was stronger by 73 paisa to Rs18.41 on 29m shares, TRG Pakistan improved by 38 paisa to Rs8.03 on 10m shares, Pace (Pak) was up by 19 paisa to Rs4.09 on 10m shares, Fauji Cement shed 2 paisa to Rs7.84 on 8m shares and NIB Bank edged higher by 5 paisa to Rs2.63 on 7m shares.

Levered Portfolio ( 18 22 FEB )

There was an overall gain in the portfolio of 18,773,415 rupees giving a positive rate of return of 4.77%. the main cause of this increase was the gain in prices of Packages and Muslim Commerical Bank both of which weigh heavily in the portfolio and there was loss only in HBL, Ferozesons and Fauji Fertilzer else the other shares all showed a capital gain.

Passive Portfolio (18 22 Feb )

There was a minor gain in the passive portfolio of 0.114% mainly due to the decrease in the prices almost all the shares. Dynea, Ghani Glass and Ghandhara Industry added hugely to the capital gain and Dynea having a significant rise in their share price. This portfolio was purely chosen on a random basis and this positive return shows that overall the market did well this week as this random selection of shares performed well.

Active portfolio ( 18 22 Feb )

During this week we have changed two stocks that is we sold Indus Motors and Sitara Chemicals shares and bought Lucky Cement and Pak Refinery shares, this was basically done as Indus Motors and Sitara Chemicals had shown a decline in its share prices during the week. Lucky Cement Ltd. Pakistans largest producer of the building material profits surged 71 percent to a

record as an increase in domestic sales offset a decline in exports. Net income was 6.78 billion rupees and secondly its revenue was increasing hence we invested in it. Talking about Pak Refinery its sales for the period were PKR 41,934,819,000 compared to PKR 39,905,509,000 a year ago period. For the half year, the company reported operating profit of PKR 2,096,172,000 compared to PKR 874,590,000 a year ago period. Hence its profits were increasing so we invested in it.

For this week we have gain a profit of Rs 5.108 million which is a reasonably good return. Our given rate of return for this week is 4.91%.