LAHORE: The Pakistan Stock Exchange (PSX) closed positive for the second consecutive session, with the benchmark KSE 100 index gaining 244 points to settle at 43,239 points owing to some positive developments. Investor sentiments improved following comments from State Minister for Finance Rana Muhammad who said that the government would announce ‘Amnesty Scheme’ for ‘Overseas Pakistanis’ by mid of Mar 2018.
Rana Afzal further said that the government is mulling to reduce the corporate tax rate from 30 per cent to 20 per cent in a phased manner. Moreover, investors bet on improving Pak –US ties after US military Central Command head Joseph Votel has shown satisfaction over Pakistan’s cooperation.
Resultantly, participation improved (volume up 4 per cent and value up 5 per cent).
The KMI 30 index gathered 872.01 points to close at 73,105.16 while the KSE All Share Index settled higher by 133.76 points. The advancers to decliners ratio was almost in balance, 178 to 169.
The market volumes were recorded at 151.36 million with Byco Petroleum Pakistan Limited (BYCO +4.38 per cent) in the lead. The script had 15.51 million shares exchange hands after it announced financials for the second quarter of the financial year 2018. It posted earnings per share of Rs0.20 against a loss per share of Rs0.04 in the same period last year.
Activity was seen in Fertilizer and Cement sectors which cumulatively contributed 117 points to index gain. Cement sector was in the limelight as investors anticipate better local demand growth while declining inventory level of Urea brought renewed interest in Fertilizer stocks.
PPL (+2.4 per cent), LUCK (+2 per cent), ENGRO (+1.8 per cent), PSO (+2.7 per cent) and HUBC (+1.5 per cent) added 155 points to the index, while, MARI (-4.1 per cent), MCB (-1.3 per cent), UBL (-1.1 per cent), HBL (-0.6 per cent) & BAHL (-0.7 per cent) withheld 102 points from the index.
Akzo Nobel Pakistan Limited (AKZO +5.00 per cent) jumped to its upper circuit breaker post announcement of FY17 earnings. The company managed to push sales up 11 per cent to Rs5.69 billion and improved gross profit margin from 42 per cent to 39 per cent. This helped boost net profit by 17 per cent and report earnings per share of Rs12.34. The board proposed a final cash dividend of Rs7.00 per share while it approved divesting of its Specialty Chemicals Business to Akzo Nobel Chemicals (SMC-Private) Limited for Rs33.5 million.
Faysal Bank Limited (FABL +3.25 per cent) also announced financial performance for the year 2017. The bank expanded its markup earned by 10 per cent to Rs 28.79 billion which improved net profit by 5 per cent. Earnings per share stood at Rs 3.42 against Rs 3.26 in FY16. It also announced a bonus share issue of 15 per cent.
Adamjee Insurance (AICL) notified the exchange regarding its intention to invest up to Rs850 million (85 million shares) in HMNPL (Hyundai Nishat Pakistan Limited). For this purpose, EOGM of AICL will be held on March 26, 2018.
Gharibwal Cement (GWLC) announced its financial results for 2QFY18, where EPS of the company clocked in at Rs1.13, down by 33 per cent YoY due to a decline in GP margins by 5ppts YoY to 31 per cent. However, GP margins were up by 7ppts QoQ.
Siddiqsons Tin Plate (STPL) announced its financial results for 2QFY18, where EPS of the company clocked in at Rs0.14, substantially down by 79 per cent YoY due to contraction in gross margins by 7ppts YoY to 10 per cent.
Technically speaking, the 100 extended gains from the previous session albeit amid thin turnover and closed just shy of resistance at 20EMA (43,374). A move past 20EMA could see the KSE 100 index testing resistance at 43,945.
