LAHORE: Indices at the Pakistan Stock Exchange (PSX) took a turn for the better as investor sentiment was positively fueled by speculations of healthy growth in earnings to be posted by Engro Polymers (EPCL) and Lotchem (LOTCHEM) in the upcoming results, followed by the news that the government is moving ahead to get a syndicated financing of $450 million, and with rumors making the rounds of a potential increase in cement prices.
Among sectors, cement sector added 51 points to the index, followed by chemicals (29 points) and pharmaceutical (23 points). Moreover, market participation in terms of volumes and value went up by 2 per cent and 13 per cent respectively.
Top 5 scripts including LUCK (+1.9 per cent), BAHL (+2.1 per cent), COLG (+5 per cent), PAKT (+3.1 per cent) & NESTLE (+0.7 per cent) added 99 points to the index whereas stocks including HBL (-1 per cent), OGDC (-1.5 per cent), UBL (-1 per cent), FFBL (-5 per cent) and NRL (-3.1 per cent)Â withheld 104 points from the index gain.
Market participation for the KSE 100 index increased to 73.71 million shares (+7.99 per cent on daily basis). Major contribution to total market volume came from EPCL (+2.71 per cent), UNITY (-0.64 per cent) and LOTCHEM (+1.47 per cent) churning 31.95 million shares out of the All Share volume of 147.47 million shares.
Daily traded value for the KSE 100 index increased to $48.54 million from $38.00 million in the previous session (+28 per cent on d/d basis); HBL ($4.87 million), EPCL ($4.34 million) and DGKC ($3.17 million) were among top contributors from traded value perspective. Major contribution to the 100 Index upside came from LUCK (+1.90 per cent), BAHL (+2.16 per cent), COLG (+4.98 per cent), PAKT (+3.05 per cent) and FCCL (+2.72 per cent) adding 101 points.
On the flip side, HBL (-1.05 per cent), OGDC (-1.37 per cent) and UBL (-0.94 per cent) took away 84 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.
Meanwhile, financial results were announced by a number of prominent names. Attock cement (ACPL) announced financial results for 3QFY18, where the company reported EPS of Rs5.88, down by 21 per cent YoY due to a decline in GP margins by 13 percentage points to 30 per cent. Finance cost of the company went up to Rs74 million, up 17x YoY.
Fauji Cement Company Limited (FCCL +2.72 per cent) declared sales of Rs 5.55 million in the same period, higher by 1.30 per cent than the last quarter.
Synthetic Products (SPEL) also announced its financial results for 9MFY18, where net earnings of the company clocked in at Rs239 million (EPS Rs2.8), down by 20 per cent YoY due to an increase in admin/finance expenses by 26/30 per cent YoY. Similarly, GP margins went down by 3 percentage points YoY to 26 per cent. In its second notice, the company informed the exchange about its board’s approval for initiation of diligence process to management to expand business via joint venture or acquisition.
Moreover, Engro Power Generation (EPQL) announced its financial results for 1Q2018, where the company reported EPS of Rs2.07, flattened as compared to last year.
Pakistan’s 9MFY18 Foreign Direct Investment (FDI) went up by 4.4 per cent YoY to $2.09 billion, while for the month of March 2018, FDI clocked in at $152.4 million.
Technically speaking, the KSE 100 index staged a buoyant close after bouncing off 20EMA (45,629) amid a slight increase in market participation. Meanwhile, analysts expect upside to face significant pressure as it tests next resistance at 46,004 (10EMA).
