LAHORE: The Pakistan Stock Exchange (PSX) started the week on a positive note and so the ‘Bull Run’ extended for the fourth consecutive day, taking cumulative gains to 3,042 points (+7.52 per cent) as post-election euphoria led to a broad-based rally last week.
On the economic front, the Pakistani rupee appreciated against the US dollar on Monday, a much-needed improvement after several rounds of devaluation. Market analysts believe this comes after news of a $2 billion loan from our neighbour China and activation $4.50 billion credit facility from Islamic Development Bank (IDB).
IDB has activated its three-year $4.5-billion oil financing facility for Pakistan that will give stability to the rupee-dollar exchange rate in the interbank market that has largely remained under pressure. The International Islamic Trade Finance Corporation (ITFC), a member of the IDB Group, rolled over a loan of $100 million this week, said sources in the Ministry of Finance and Economic Affairs. The Economic Affairs Division (EAD) secretary signed the Letter of Amendment for the credit facility.
The KSE-100 index jumped 818.59 points in the session to touch 43,605.04 and closed the session higher by 770.18 points at 43,556.63. The KMI 30 index also enjoyed an exciting ride and appreciated by 2.11 per cent. The index finally ended the day at 73,728.09. The KSE All share index gathered 590.79 points and settled at 31,304.20.
Market participation for the KSE-100 index declined to 176.41 million shares from 187.53 million in the previous session (-5.93 per cent on day on day basis). Major contribution to total market volume came from WTL (+16.69 per cent), PIBTL (+9.50 per cent) and PIAA (+8.54 per cent) churning 73.70 million shares out of the All Share volume of 377.93 million shares. Daily traded value for the KSE-100 index increased to $93.77 million from $89.06 million in the previous session (+5.29 per cent on day on day basis); OGDC ($8.59 million), PSO ($6.39 million) and LUCK ($6.27 million) were among top contributors from a traded value perspective.
Major contribution to the KSE-100 index upside came from HBL (+3.23 per cent), LUCK (+5 per cent), PSO (+3.23 per cent), PPL (+1.42 per cent) and MARI (+4.54 per cent) adding 357 points. On the flip side, UBL (-0.94 per cent) and EFERT (-1.06 per cent) took away 29 points. The KSE-100 index is 15 per cent above its 52-week low of 37,736.73 reached on December 12, 2017, and 7.8 per cent below its 52-week high of 47,241.17 reached on August 4, 2017.
Worldcall Telecom (WTL +7.65 per cent) was the volume leader for the session with 35.13 million shares exchanged. Pakistan International Bulk Terminal Limited (PIBTL +8.11 per cent) was next with a volume of 19.61 million shares traded. Followed by Pakistan International Airlines Corporation Limited (PIAA +1.14 per cent). The script had 18.95 million shares exchanged.
The pharmaceutical sector was up by 3.52 per cent. GlaxoSmithKline (Pakistan) Limited (GLAXO +5.00 per cent), The Searle Company Limited (SEARL +5.00 per cent) and GlaxoSmithKline Consumer Healthcare Limited (GSKCH +5.00 per cent) all touched their upper circuit breakers. The sector seemed to have gained from a possibility of rise in prices.
At-Tahur Limited (PREMA +5.00 per cent), the first dairy IPO of its kind, started trading at the price of Rs21.00 and touched the upper cap on the first day.
Technically speaking, the KSE-100 index extended gains for the 4th session in a row and breached past 200EMA (42,994) and rising trend line resistance (43,320) in Monday’s session. Next resistance is 44,333 (intraday high from June 7, 2018) and the falling trend line from 53,127 (44,817).
Financial Results
Honda Atlas Cars (Pakistan) Limited (HCAR +0.76 per cent) announced its 1st quarters result for the year 2018. The company’s sales were up by 135 per cent YoY, while it’s earning per share (EPS) declined by nearly 50 per cent. The gross margins were down by 24 per cent with the depreciation of rupee and increase in raw material cost.
ICI Pakistan Limited (ICI -1.62 per cent) also declared results for the year ended June 30, 2018. Although the company’s sales appreciated by 20 per cent from the previous year, its EPS declined by 40 per cent YoY. The gross margins fell by 10 per cent from the last year also due to the currency devaluation and higher raw material prices. The finance cost was up by 68 per cent YoY mainly because of debt obtained for Morinaga Expansion Project.
Hino Pak Motor (HINO) announced its financial result for the 1QMY19, wherein the company reported EPS of Rs9.61 compared to Rs30.79 in the same period last year. The decline in earnings can be attributed to gross margin erosion by 6 percentage points to 7.4 per cent.
Exide Pakistan (EXIDE) announced its financial result for the 1QMY19, wherein the company reported a loss per share (LPS) of Rs4.72 compared to an EPS of Rs8.93 in the same period last year. Gross margins declined by 0.8 percentage points to 11.4 per cent in 1QMY19 and were the primary reason for the fall in profitability.
