Market Daily: KSE 100 drops 258.48 pts amid increase in gas prices

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LAHORE: The Pakistan Stock Exchange (PSX) couldn’t continue its winning streak from the previous session and was taken over by bears. According to the latest reports, the Prime Minister of Pakistan has given his approval for increasing the rates of natural gas by 46 per cent as proposed by the Oil and Gas Regulatory Authority (OGRA). As per market analysts, the sectors which will be impacted due to the hike include fertilizer, cement, steel and textile.

The KSE 100 index depleted by 258.48 points to touch an intraday low at 41,495.41 points. It closed lower by 132.93 points at 41,620.96. The KMI 30 index lost 369.90 points and ended at 70,680.61. Whereas, the KSE All Share index fell short by 86.98 points and settled at 30,579.47.

The market volume remained almost flat and was recorded at 126.93 million. Lotte Chemical Pakistan Limited (LOTCHEM -3.53 per cent) led with a volume of 8.27 million shares. Pakistan International Bulk Terminal Limited (PIBTL +2.21 per cent) and Nimir Resins Limited (NRSL -8.14 per cent) also managed to secure positions amongst the volume leaders with 8.23 million and 8.13 million shares traded respectively.

Even though the market trend was negative the largest sector by market capitalization, commercial bank, still managed to make a slight gain of 0.31 per cent. Habib Bank Limited (HBL +0.18 per cent), United Bank Limited (UBL +0.33 per cent) and Standard Chartered Bank (Pakistan) Limited (SCBPL +2.17 per cent) ended with negligible gains. While Allied Bank Limited (ABL) was up by 2.82 per cent. MCB Bank Limited (MCB -1.04 per cent) succumbed to market forces and bled.

Kot Addu Power Company Limited (KAPCO +3.95 per cent) released its financial results FY18. The company declared final cash dividend of Rs4.80 per share in addition to the interim dividend of Rs4.35 per share. Sales were up by 12 per cent YoY while the earning per share increased from Rs10.73 in the preceding year to Rs12.06 in the current year (increase of 12 per cent YoY). The increase in earnings was mainly due to rise in the other income (up by 89 per cent YoY) of the company which was because of the realization of the tariff true up.