Market daily: PSX ends flat, as big names announce earnings

Benchmark loses 6pts to end at 42,743pts

LAHORE

The Pakistan Stock Exchange (PSX) failed to hold on to early morning gains and to the disappointment of investors, concluded Monday’s session flat. Noise in both domestic and international political arena is doing no good to the market. Market participation remained thin although big names continued to announce earnings.

Major news came from the Supreme Court when it decided against the National Bank of Pakistan (NBP -5.00 per cent). The apex court has dismissed the appeal filed by NBP, maintaining judgment of the Lahore High Court in favour of the pensioners.

The Lahore High Court had directed NBP to release pensioner benefits to the bank’s pensioners in early 2016. The bank had estimated its pension liabilities to inflate by Rs 48 billion.

The KSE 100 index opened the day on an optimistic note and crossed the 43,000 level early after appreciation of 336.87 points. There on, the index fell to a day’s low of 42,628.37 with a loss of 121.83 points from the previous close, just before settling flat for the day.

The KMI 30 index ended in the green but only 22.65 points while the KSE ALL Share Index ended down a minor 12.94 points. The advancers to decliners ratio stood at 124 to 218.

NetSol Technologies Limited (NETSOL -2.50 per cent) declared financials for 2017. The company posted a 22 per cent growth in sales pushing up gross profit margins from 29 per cent to 32 per cent. With 115 per cent increase in other income, operating profit margins improved to 10 per cent and net profit jumped 513 per cent to Rs 3.20 million. Earnings per share clocked at Rs 3.58 against Rs 0.59 of the previous year. The board approved a cash dividend of Rs 1.45 per share.

Gul Ahmed Textile Mills Limited (GATM -1.88 per cent) registered sales of Rs 39.90 billion, a rise of 24 per cent since FY16. But gross profit margins worsened from 27 per cent to 18 per cent. Operating profit margins lowered to 4 per cent and the 218 per cent inflated other income could not help support profits. Net profits narrowed down by 30 per cent to convert into per share earnings of Rs 2.50. The management approved a cash payout of Rs 1.00.

Nishat Mills Limited (NML -0.99 per cent) announced flat sales of Rs 49.25 billion up only 3 per cent since the last financial year. Gross profit margins inched lower from 13 per cent to 11 per cent and so did the operating profit margin, FY17 12 per cent, FY16 14 per cent. Profit after taxation of Rs 4.26 billion was 13 per cent decline from Rs 4.92 billion of the previous year. Earnings per share clocked at Rs 12.12 with Rs 5 dividend per share.

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