Market Daily: KSE 100 drops 389.62pts to selling, political pressures  

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LAHORE: The KSE 100 index dropped a whopping 389.62 points, and settled at 45682.24 on Monday. Off to a rocky start once again the 100 Index slipped into deep red right from the word go after Bloomberg reported that an unaffiliated institutional holder of OGDC (-4.75 per cent) is offering 35 million shares at Rs164-168 per share in placement. This came following a buoyant close on Friday at Rs175.73 with the seller offering a potential discount of 6.7 per cent from the previous close.

Subsequently, OGDC came under immense pressure and influenced investor sentiment negatively. Additional pressure came on the back of reports of reduction in prices of cement in the southern region and lack of clarity on relief to fertiliser manufacturers in GIDC amendment bill 2018. Naturally, the day ended with Energy (-1.97 per cent) and Materials (-1.04 per cent) weighing down heavily on the market sentiment. OGDC alone wiped out 112 points off the 100 Index along with PPL (-1.07 per cent) and PSO (-2.07 per cent) taking away 44 points. Refineries came under selling pressure amid dismal earnings announcement from ATRL (-3.9 per cent) and NRL (-2.98 per cent). Among Materials, major drag came from FFC (-3.64 per cent), LUCK (-1.46 per cent), DGKC (-2.78 per cent) and ISL (-2.73 per cent) and took away 113 points.

Additional pressure to the 100 Index came in the second half after LHC ordered temporary ban on the airing of contemptuous speeches by Nawaz Sharif, his daughter Maryam Nawaz and other party leaders. Giving the decision on over two dozen petitions the court ordered the PEMRA to decide on the petitions in 15 days and until that time refrain from airing any contemptuous remarks.

Amid rising political uncertainty market watchers decided to stick to the sidelines with the 100 Index Volume and turnover dropping down 35 per cent and 24 per cent respectively on d/d basis. APL (+0.58 per cent) announced 3QFY18 NPAT of Rs1.45 billion (EPS: PKR 17.5), slightly higher than our estimates of NPAT Rs1.36 billion (EPS: PKR 16.7), courtesy 20 per cent/5 per cent YoY growth in Mogas and HSD sales. According to market analysts, GP margins of 5.5 per cent reflect healthy inventory gains, indicative of a rising oil price scenario. POL (-0.46 per cent) announced its 3QFY18 results after market close and reported PAT of Rs3.1 billion (EPS: Rs13.13), up by 11 per cent YoY due to higher production and realised prices.

Market participation for the 100 Index declined to 68.25 million shares (-35.1 per cent on d/d basis). Major contribution to total market volume came from UNITY (+4.98 per cent), KEL (-0.98 per cent) and EPCL (-2.17 per cent) churning 32.14 million shares out of the All Share volume of 144.85 million shares. Daily traded value for the 100 Index declined to $38.00 million from $50.02 million in the previous session (-24.04 per cent on d/d basis); OGDC ($4.51 million), EPCL ($3.32 million) and DGKC ($3.05 million) were among top contributors from traded value perspective. Major contribution to the 100 Index downside came from OGDC (-4.75 per cent), FFC (-3.64 per cent), LUCK (-1.46 per cent), PPL (-1.07 per cent) and PSO (-2.07 per cent) taking away 236 points. On the flip side, ENGRO (+1.06 per cent) and COLG (+4.62 per cent) added 33 points. The 100 index is 21 per cent above its 52-week low of 37,736.73 reached on December 12, 2017 and 14 per cent below its 52-week high of 53,127.24 touched on May 25, 2017.

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