Market Daily: KSE-100 index sheds 485 points

LAHORE: The Pakistan Stock Exchange (PSX) had another turbulent session on Thursday with negative triggers all around. On the economic front, the State Bank of Pakistan (SBP) released figures showing that the total debts and liabilities of the country have swelled up Rs13.50 trillion (82.8 per cent) in the last five years. In a statement, Fitch Ratings agency pointed out towards challenges to be immediately faced by the new government.

The KSE 100 started the session slightly positive but soon the index crumbled. The index finally settled lower by 485.76 points at 41,960.80. The KMI 30 index declined by 1.22 per cent. Whereas, the KSE All Share index lost 301.20 points and ended at 30,421.99.

The market volume saw a further decline of 2 per cent from the previous session and was recorded at 142.18 million. Descon Oxychem Limited (DOL +2.32 per cent) led the volume chart after the announcement of its financial results. The script had 8.92 million shares exchanged. Followed by Pak Elektron Limited (PAEL -4.84 per cent) and The Bank of Punjab (BOP-2.00 per cent) with 8.85 million and 6.66 million shares traded.

The cement sector lost 2.37 per cent in its cumulative market capitalisation. The Chief Justice of Pakistan has directed cement factories not to use water from natural resources for production purposes. D. G. Khan Cement Company Limited (DGKC -4.49 per cent) nearly touched its lower lock while Lucky Cement Limited (LUCK) was down by 1.80 per cent.

Engro Corporation Limited (ENGRO -2.43 per cent) declared its financial performance for 2QFY18. The company declared interim dividend of Rs 7.00 per share. Revenue surged up by 38 per cent YoY while earning per share improved from the same period last year (from Rs -2.28 to Rs 1.20) because of the reduction in finance cost of the company (reduction of 76 per cent YoY).

Shell Pakistan Limited (SHEL -5.00 per cent) was floored after the management released results for the second quarter ended June 30, 2018. An interim dividend of Rs7.00 per share was approved by the board. Sales depreciated by 3.90 per cent from the last year while the earning per share declined by 74 per cent YoY (FY17 Rs 8.81, FY18 Rs 2.31). Gross profit was up by 6 per cent from the previous year while net profit deteriorated by 74 per cent YoY.

Nestle Pakistan (NESTLE) announced its 2Q2018 result with EPS of Rs63.30 down 25 per cent YoY. Lower gross margins, down 4ppts to 35 per cent YoY and increased financial charges by 56 per cent YoY dragged down the company’s earnings. NESTLE also announced a dividend of Rs110 per share.

BAHL announced 2Q2018 consolidated earnings of Rs2.1 billion (EPS Rs1.9/share), up 1 per cent YoY. Net Interest Income (NII) of BAHL improved by 21 per cent YoY to Rs7.9 billion during the quarter, driven by volumetric deposit growth and higher interest rates. Non‐markup income of the bank was down 36% YoY to Rs1.9bn due to lower capital gains.

Philip Morris Pakistan (PMPK) announced its 2Q2018 result posting EPS of Rs5.18 up 298 per cent YoY vs. LPS of Rs2.65 in the similar period last year. Sales for the company improved by 58 per cent YoY, gross margins were up 3ppts to 41 per cent YoY and financial charges were down 87 per cent YoY, all of which contributed positively to the company’s earnings.

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