PSX falls 0.8pc as activity continues to remain dismal

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LAHORE – The traders endured one other week of insipid market efficiency, as overhang of ongoing political occasions mixed with unsure financial outlook continued to maintain traders sidelined. There was, nevertheless, some curiosity was witnessed within the fertilizer sector on the again of sturdy Aug-2017 off-take and rising worldwide urea costs and oil & fuel exploration sector as POL introduced a brand new oil and fuel discover and worldwide oil costs touched their highest ranges since Oct-2015. Then again, cements (-Three.7 p.c WoW) have been but once more a key laggard as provisional information for Sept-2017 suggests a decline of 18 p.c MoM in home demand throughout the month. Banks too dragged down the index as NBP (-15.Three p.c WoW) is predicted to take a major hit of Rs48b after the Supreme Court docket on Monday dismissed enchantment filed by the financial institution with respect to its pension fund case. HBL (-2.Three p.c WoW) additionally continues to face the sick results of the current positive imposed on it by the US Regulators. Total, the benchmark KSE-100 index declined by zero.eight p.c WoW to shut at 42,409. Exercise continues to stay dismal, with common buying and selling volumes of 146mn shares/day (-14 p.c WoW) and common traded worth of $59m/day (31 p.c WoW) throughout the week. Key patrons have been mutual funds with internet shopping for of $6.2m, whereas foreigners have been additionally internet patrons of $zero.5m throughout the week.

Specialists mentioned that the outgoing week noticed KSE-100 decline by zero.eight p.c/341 factors. Participation thinned as buying and selling took a backseat to politics; common volumes have been down 14 p.c whereas worth plunged 31 p.c to $59m.

Throughout outgoing week, banks bought $10.3m, whereas funds purchased $6.2m value of equities. Foreigners purchased $zero.5m in comparison with $zero.4m final week. Shopping for centered in banks ($7.5m), cement ($Three.5m) & OMCs ($2.8m), whereas promoting in E&P ($10.4m) & fertilizer ($zero.7mn).

After 14-month lull, foreigners have been vital patrons of $28.3m in Sep’17; concentrated in banks ($14.5m), cement ($11.6m), fertilizer ($10.9m) & OMCs ($9.5m); promoting in E&P ($13.7m). KSE-100 index gained 2.9 p.c in Sep’17, after Three months decline, earlier than which KSE-100 gained 2.6 p.c in Could’17. On quarterly foundation, KSE-100 declined eight.9 p.c in 1QFY18, worst quarterly efficiency in 36 quarters or 9yrs since Jun’08/4QFY08.

Throughout the week, State Financial institution of Pakistan (SBP) Financial Coverage Committee determined to maintain the coverage charge unchanged at 5.75 p.c. Going ahead, there are anticipations of acquire in exports on account of favorable world financial situations, enchancment in home power provides, and incentives given to exporting business. In contrast with info in July 2017, exports current an encouraging image. Nevertheless, imports are additionally anticipated to rise resulting from ongoing CPEC associated investments and home financial actions, though at a slower tempo than in FY17. Amid declining variety of staff continuing overseas there are prospects of sluggish progress in staff’ remittances. Therefore, an enchancment within the nation’s exterior account and its overseas alternate reserve depends upon well timed realization of official monetary inflows together with considerate adoption of structural reforms to enhance commerce competitiveness within the medium time period.

State Financial institution of Pakistan (SBP) outcomes of the newest Shopper Confidence Survey, performed throughout September 5 to 9, present that, normally, shoppers’ confidence on Pakistan’s financial system has elevated. The general Shopper Confidence Index elevated by 5.07 p.c in comparison with the earlier survey, held in July 2017. Shopper Confidence Index rose to 173.81 in Sep’17 as in comparison with 165.43 in Jul’17. Common urea costs (Center East) eased by 15$/5 p.c WoW to settle at $275/ton, whereas futures have been buying and selling b/w $260-265 on Friday, pointing in direction of decrease common costs in first week of October.

The Searle Firm (SEARL) notified monetary outcomes for FY17, reporting consolidated PAT (attributable to homeowners) of Rs2.4b translating to EPS of Rs15.Three, up 12 p.c YoY. Income grew 17 p.c to Rs13.3b whereas gross margins have been secure at 53 p.c. Together with the outcome SEARL introduced last money dividend of Rs8/sh and 20 p.c bonus shares. The inventory closed at Rs403.9, hitting higher restrict, whereas it has shed 45 p.c from its 52w excessive of Rs739/sh.

Sapphire Textile Mills (SAPT) reported FY17 consolidated EPS of Rs159, up 61 p.c YoY. The corporate didn’t declare any 12 months finish entitlement. Tariq Glass (TGL) reported FY17 revenue after tax of Rs760mn (EPS: Rs10.2), up 53 p.c YoY. Gross sales have been up 23 p.c YoY to Rs9.9b whereas gross revenue solely rose 19 p.c as margins contracted by 60bps.

 

Together with the outcome, TGL declared last money dividend of Rs4.15/sh.

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