Market Daily: KSE 100 settles positive, Moody’s maintains B3 stable

LAHORE: The Pakistan Stock Exchange (PSX) witnessed another roller coaster ride which though managed a close in the green but the gain was negligible. The indices started the day in an upwards trajectory but were not meant to fly too high. With rumours doing rounds regarding the name of the caretaker Prime Minister and dates of elections, investors were cautious. The Ramzan factor also played its part in keeping the volumes in check.

Investors remained concerned as the government has not yet disclosed any concrete plan to address mounting current account deficit numbers that have swelled to $14 billion in 10MFY18 against $9.3 billion last year.

The KSE 100 index touched its intraday high of 41,912.68 with a rise of 289.16 points in the first hour of trading and low of 41,591.44, down 32.08 points, in the last hour of trading. The index settled with minor alteration of 25.13 points at 41,648.65, positive after 6 sessions. Investors showed interest in small-cap stocks that led volumes to grow by 7 per cent. However, the value dropped by 14 per cent.

The KMI 30 index failed to hold its increase of 626.10 points and ended short of 147.02 points at 70,606.38. The KSE All Share Index settled with a rise of 47.554 points. The advancers to decliners ratio stood at 111 to 173.

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The market volumes struck 88.46 million led by Fauji Cement Company Limited (FCCL +1.23 per cent), volume 6.05 million. Next on the chart was Pak Elektron Limited (PAEL +0.73 per cent), volume 5.93 million and Engro Polymer and Chemicals Limited (EPCL -4.38 per cent), volume 5.54 million. Engro Polymers (EPCL) closed near its lower lock on Monday as company declared right shares of 37 per cent at Rs22 per share in the last session.

Again large sectors closed with low changes. The commercial bank sector pushed its cumulative market capitalization up by just 0.33 per cent, oil and gas exploration sector pulled it lower by 0.56 per cent and the food and personal care sector chipped it off by 2.85 per cent.

Meanwhile, Moody’s Investors Service maintained Pakistan’s rating at B3 stable saying that this credit profile is supported by the country’s robust growth performance and potential, a large — but low-income — economy, and an improved track record of reforms that started under its 2013-16 International Monetary Fund (IMF) programme. Moody expects China Pakistan Economic Corridor (CPEC) to drive investment and solid economic activity.

Moreover, Sindh Abadgar’s Sugar Mill (SASML) announced its financial results for March 2018 quarter, where the company reported earnings per share of Rs22 against Rs1.2 in similar quarter of last year. Rise in earnings could be attributed to increase in revenues by 75 per cent YoY and rise in gross profit margins by 11 percentage points YoY to 22 per cent.

Shah Murad Sugar Mills (SHSML) in its notice to exchange stated that company has successfully started trial production of its ethanol plant on May 18, 2018.

Ghani Gases (GGL) in its notice to exchange stated that company’s third ASU plant will commence operation during the second week of September 2018, taking company’s total capacity to 125k tonnes. Further, the company has decided to set up the fourth plant in the south with a capacity to produce 225 tpd of industrial and medical gases. The new project will be commissioned during 3Q2020.

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