Market Daily: PSX drops 400 points as govt raises gas prices

LAHORE: Amid the uncertainty surrounding the upcoming mini-budget, the Economic Coordination Committee’s (ECC’s) approval to raise gas prices, and the country’s dwindling reserves, the Pakistan Stock Exchange (PSX) started the week on a negative note ending the first session in the red.

The KSE 100 index depreciated by 665.08 points to touch intraday low at 40,255.23. The index settled lower by 399.84 points to end the day at 40,520.47.

The market volume declined by 8 per cent on a day-on-day (DoD) basis and was recorded at 145.20 million. Lotte Chemical Pakistan Limited (LOTCHEM -1.59 per cent), Unity Foods Limited (UNITY -4.93 per cent) and Descon Oxychem Limited (DOL -4.98 per cent) led the volume chart on Monday. The scripts had 23.73 million, 13.54 million and 7.91 million shares traded respectively.

According to data published by the All Pakistan Cement Manufacturers Association (APCMA), cement exports have witnessed a growth of 36 per cent in August 2018. The number of cement exports improved to 0.56 million tons as compared to 0.41 million tons in the same period the previous year. But investors looked more concerned about contraction on the domestic front and the sector chopped off 2.39 per cent from its cumulative market capitalization.

Nishat Power Limited (NPL -3.53 per cent) released its financial performance for FY18. Sales surged up by 13 per cent YoY while the earning per share increased from Rs 8.152 in the preceding year to Rs 9.070 in the current year (an increase of 11 per cent YoY). Alongside financials came a final cash dividend of Rs 1.50 per share.

Re-composition of for KSE-30 index came into force from Monday. Three companies Bank Alfalah Limited (BAFL -0.33 per cent), Honda Atlas Cars (Pakistan) Limited (HCAR -5.00 per cent) and Mari Petroleum Company Limited (MARI +0.25 per cent) become a part of the index while Maple Leaf Cement Factory Limited (MLCF -4.92 per cent), National Refinery Limited (+0.16 per cent) and Aisha Steel Mills Limited (ASL -3.60) were excluded.

Foreign Direct Investment (FDI) fell by 40 per cent in the first two months of the current fiscal year increasing the list of problems faced by the newly elected government which is looking to reverse the widening trade gap and depleting foreign exchange reserves.

Total FDI fell to $288 million during July‐August FY19 compared to $480.6 million in the corresponding period last year, as per the central bank’s reported data.

Amid witnessing a steep decline of over $600 million in foreign currency reserves in the last 15 days, Pakistan will have to repay a loan of over $2.522 billion in the shape of principal and markup amounts during three months from September to November 2018.

It will have to be paid to all international, multilateral and bilateral creditors as well as investors of sovereign bond holders.

Sui Southern Gas Company Limited (SSGCL) has agreed to provide 60 MMCFD system gas to Sui Northern Gas Pipelines Limited (SNGPL) for Sep and Oct 2018 and the latter will supply it to fertilizer plants for urea production; however, SNGPL will ensure delivery operation and payments of gas to the producers. Trading Corporation of Pakistan (TCP) invites tender from international companies to import 100,000 metric tons. TCP
asked interested companies to submit bids by 15 October 2018

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