LAHORE: Pakistani equities continued to extend losses for third straight session after the disqualification of Foreign Minister Khawaja Asif which will be a major blow to the ruling party PML-N. Moreover, poor corporate results further dampened investors sentiments at the Pakistan Stock Exchange (PSX). Resultantly, the market lost 257 points, closing at 45,461 index level.
Bank of Punjab (BOP) hit upper cap just after its result announcement, gaining 10 per cent in a single session with traded volumes of 9 million shares. While Engro Polymers (EPCL) lost 3 per cent as investors opted for profit taking post disclosure of its anti-dumping duties (ADD) on imports of PVC resin.
E&Ps remained top laggards to index and deducted 44 points from the index, followed by Foods down 40 points and Fertilizer down 29 points. Market participation in terms of volumes fell by 6 per cent, while value traded was down by 13 per cent.
Top 5 scrips including HBL (-1.6 per cent), DAWH (-3.3 per cent), PPL (-1.2 per cent), MCB (-1.4 per cent) & POL (-1.3 per cent) contributed 60 points to the index decline whereas stocks including BOP (+10.4 per cent), FFC (+0.8 per cent), HASCOL (+3.1 per cent), LUCK (+0.5 per cent) & BAFL (+1.3 per cent) added 60 points to the index gain.
Lucky Cement (LUCK) notified the exchange about its expansion plan for north, the company has decided to increase the cement production capacity at its Pezu plant by 2.6 million tonnes per annum at an estimated cost of ~Rs18 billion. Additionally, the company has decided a green field clinker production facility in Iraq of 1.2 million tonnes per annum at an estimated cost of $109 million. Both expansion plans will be completed during last quarter of 2019.
Corporate Results
Kohinoor Textile Mills (KTML) announced its financial results for 3QFY18, where the company reported EPS of Rs2.3, down by 50 per cent YoY due to an absence of other income in this quarter against Rs571 million in the same period last year (SPLY). Moreover, gross profit margins of the company went down by 1 percentage point (ppt) YoY to 28 per cent during 3QFY18.
Tariq Glass (TGL) announced its financial results for 3QFY18 and reported earnings of Rs325 million, up by 53 per cent YoY due to increase in net sales by 32 per cent YoY and lower effective tax rate of 21.5 per cent against 28 per cent corresponding period of last year.
General Tyres (GTYR) announced its financial results for 3QFY18 while reporting an EPS of Rs2.6, down by 44 per cent YoY, as margins of the company were dented by 5ppts YoY to 22 per cent.
Moreover, Cherat Packaging (CPPL) reported an EPS of Rs3.7, down by 31 per cent YoY due to reduced GP margins of 14 per cent for 3QFY18 against 20 per cent in the corresponding period of last year.
Millat Tractors (MTL) announced its financial results for 3QFY18, where the company reported EPS of Rs32, flat versus last year. Net sales of the company increased by 5 per cent YoY, while margins went down to 21 per cent as compared to 24 per cent in SPLY.
Matco Foods (MFL) posted earnings of Rs73 million for 3QFY18, down by 35 per cent YoY due to a decrease in margins by 4ppts YoY to 14 per cent.
Nishat Chunian (NCL) announced its financial results for 3QFY18, while the company reported EPS of Rs3, up by 87x YoY due to increase in other income by 3.8x YoY to Rs219 million and increase in gross margins by 4ppts YoY to 20 per cent.
Thal Limited notified exchange about its financial results of 3QFY18, where EPS of the company went down by 13 per cent YoY to Rs11.3. The gross profit of the company went down by 4.5ppts YoY to 20 per cent.
