LAHORE: The Pakistan Stock Exchange (PSX) did not perform on Tuesday as investors lacked positive triggers. Moreover, sentiments looked bearish as Adviser to Prime Minister on Finance Dr Miftah Ismail left for Paris to defend Pakistan’s case in the meeting of Financial Action Task Force (FATF).
The KSE 100 index plunged 707.85 points during the session but managed to recover some losses concluding with a loss of 277.72 points from the previous close at 43,294.95. The KMI 30 index depreciated 1.78 per cent before settling down 380.84 points. The KSE All Share Index shed 116.11 points as 222 scripts declined and 114 managed to advance.
Though, traded volumes day on day basis were up 34 per cent while value was up 52 per cent.
The market volumes improved from the previous session’s 126.50 million but 169.62 million was still regarded by market analysts as low compared to recent past. Dewan Cement Limited (DCL +3.70 per cent) led the volume chart with 14.09 million shares exchanged.
Amongst the top 10 traded companies featured prominent names like DG Khan Cement Company Limited (DGKC +0.13 per cent), volume 4.34 million, and Oil and Gas Development Company Limited (OGDC -0.19 per cent), volume 4.43 million.
Earnings season also failed to cheer investors as Dec 2017 quarter result of both NBP and DGKC fell short of investors’ expectations. National Bank of Pakistan (NBP -2.40 per cent) posted per share earnings of Rs 10.82 in the financial year 2017. This was a minor increase of 1.21 per cent compared to FY16. The board decided not to announce any cash dividend keeping in view of a likely payoff of pension liability.
DGKC, on the other hand, booked a substantial one-time tax reversal in 2QFY18 which inflated its effective tax rate by 48 per cent to 70 per cent.
DG Khan Cement Company Limited (DGKC +0.13 per cent) announced financial result for 2QFY18. The company posted earnings of Rs 2.05 per share down by 65 per cent YoY and 68 per cent QoQ. Net sales increased marginally by 2 per cent YoY on the back of an increase in dispatches but gross margins fell with raise in coal prices.
Top 10 Index point decliners were HBL (-2.2 per cent), HUBC (-2.2 per cent), MCB (-1.2 per cent), DAWH (-2.2 per cent), BAHL (-1.8 per cent), UBL (-0.8 per cent), MLCF (-3.9 per cent), NBP (-2.4 per cent), FFC (-0.8 per cent) & NML (-1.9 per cent); withholding 226 points.
Pakistan Tobacco Company (PAKT) announced its 4Q2017 result where the company reported revenues of Rs 13.5 billion, up 46 per cent YoY primarily on the back of volumetric growth, analysts believe. Higher revenues led to bottom-line growth of 35 per cent to Rs 2.8 billion (EPS Rs 11). Along with the result, the company also announced a cash dividend of Rs20 per share (in addition to an interim dividend of Rs 10 per share).
Al-Ghazi Tractors (AGTL) announced its 4Q2017 earnings of Rs 835 million (EPS Rs 14.4 per share) mainly owing to 26 per cent YoY increase in revenues. While margins declined by 2 per cent to 27 per cent in the outgoing quarter, higher revenues due to 27 per cent volumetric growth (to around 6.4k units) supported net earnings.
Technically speaking, after shedding heavily earlier in the session, the KSE 100 index closed with a hammer. The long lower shadow of the Hammer implies that the market tested to find support and demand was located. Having said that, immediate resistance is at 43,945 (Monday’s high) while 42,860 (previous week’s low) is expected to provide immediate support.
