Market Daily: PM gets cold welcome from PSX as stocks end flat

LAHORE: The Pakistan Stock Exchange (PSX) did not give a very warm welcome to the new Prime Minister. As economic worries loom, investors seem to have adopted a wait and watch policy to see what steps the government takes. Another reason for thin volumes was the three days Eid holidays starting Tuesday.

The KSE 100 witnessed an upbeat start to the day and managed to gather 254.92 points to reach a high of 42,701.54. It closed flat, down 21.52 points at 42,425.10. The KMI 30 index appreciated by 72.57 points and ended at 72,711.17. Whereas, the KSE All Share index was higher by 38.72 points and settled at 30,764.81.

Yesterday’s first public address (after taking oath) of Pakistan’s 22nd Prime Minister Imran Khan, in which the premier promised wide-ranging reforms with a focus on safeguarding Pakistan’s resources and their redistribution from the rich to the disadvantaged — failed to have an spillover effect on the market as investors remained unenlightened on the government’s future economic plans.

In an economic development that came in after market closing hours, Pakistan’s Current Account Deficit (CAD) for July 2018 clocked‐in at $2.2 billion, up 14 per cent YoY, considerably higher than the market’s expectations.

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Market participation remained dull as volumes were down 24 per cent to 147.6 million shares while value fell 20 per cent to $51.8 billion.

The market volume was down by 24 per cent from previous session and was recorded at 147.55 million. Worldcall Telecom (WTL +1.50 per cent) was the volume leader with 14.35 million shares traded. The Bank of Punjab (BOP -1.34 per cent) and Engro Polymer and Chemicals Limited (EPCL -1.23 per cent) were next with 10.99 million and 6.90 million shares exchanged.

The power generation and distribution sector lost 0.59 per cent from its cumulative market capitalization. K-Electric Limited (KEL) appreciated by 0.18 per cent while Hub Power Company Limited (HUBC) was up by 0.10 per cent. Altern Energy Limited (ALTN -4.99 per cent) nearly touched its lower lock. While Lalpir Power Limited (LPL) declined by 5.42 per cent.

Hub Power Company Limited (HUBC +0.10 per cent) announced its financial results for the Year Ended 30th June 2018. The company declared final cash dividend of Rs 2.80 per share. Sales declined by 2.43 per cent YoY. While the earning per share depreciated by nearly 11 per cent YoY (FY17 Rs 8.29, FY18 Rs 7.40).

Lalpir Power Limited (LPL -5.42 per cent) released its financial performance for 2QFY18. The company’s revenue dropped by 9 per cent YoY. Whereas, earning per share declined to Rs 0.58 in the current year from Rs 0.81 in the previous year (a reduction of 28 per cent). The gross profit declined by 12 per cent YoY as the cost of sales increased resulting in deterioration of profitability.

Trading at the market shall remain suspended from Aug 21 to 23 on account of Eid Ul Azha. Normal activity shall resume on Friday, Aug 24.

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