— Pakistan faces major macroeconomic risks: WB
LAHORE: Following slow trading for days now, the market is in dire need of triggers that would induce excitement. K-Electric Limited (KEL -6.98 per cent) ruled the day with the script on sale after National Electric Power Regulatory Authority (NEPRA) approved the multi-year tariff (MYT) for the company.
The new tariff was approved at Rs 12.77/KwH slightly above the earlier approved tariff of Rs 12.07/KwH. This is still lower than the old rate of Rs 15.6/KwH (applicable in FY16) and a review petition rate has been filed by KEL at Rs 16.1/KwH. This change has been approved for 7 years against company’s demand for 10 years.
The country remains weak on the economic front where a recent report by World Bank stated that it is exposed to major macroeconomic risks due to weak external balances during the fiscal year 2017-18. The problem has risen through consistent pressure from rising current account deficit which in turn is negatively affecting the national reserves.
The KSE 100 index dropped another 812.73 points intraday to 40,287.26 before late buying helped recover a little. The index ended with a loss of 489.27 points at 40,610.72. The KMI 30 index declined 1,205.00 points to 67,373.75 while the KSE All Share Index closed with a loss of 324.92 points. The advancers to decliners ratio stood at 73 to 273.
The market volumes were recorded at 184.23 million with K-Electric Limited (KEL -6.98 per cent) having contributed the most. A total of 76.71 million shares were exchanged in the script alone while next on the chart, TRG Pakistan Limited (TRG -0.09 per cent), had only 7.67 million shares change hands.
According to a recently released data by Federal Bureau of Statistics, the export revenues of Pakistan cement industry have fallen to 14.86 per cent in terms of value in dollars and 13.9 per cent in terms of volume. This was recorded on a year-to-year basis. The data released by All Pakistan Cement Manufacturers Association (APCMA) revealed that the export of cement to Afghanistan increased by 15 per cent but exports to India and other countries declined.
After a dream run in the last year, the cement sector has taken a huge hit with many scripts having broken their 52-week low. Kohat Cement Company Limited (KOHC -3.22 per cent) has fallen 46 per cent in a year and the largest company by market capitalization, Lucky Cement Limited (LUCK -2.69 per cent), by 27 per cent.
