The equity market experienced a significant downturn on Monday, with the benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) closing at 44,914 points, marking a decline of 392 points from the previous close of 45,306 points.
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PSX declares around 200 percent growth in after tax profit for nine-month period
KARACHI: Pakistan Stock Exchange (PSX) on Monday announced a massive growth of around 200 percent in after tax profit for nine-month period ended March 31, 2021 owing to significant increase in listing fee and income from exchange operations.
The stock exchange declared Rs542 million as profit after tax during first nine months of the current fiscal year as compared with Rs181 million in the corresponding period of the last fiscal year.
The PSX declared Re0.68 as basic and diluted earnings per share during July – March 2020/2021 as compared with Rs0.23 in the same period of the last fiscal year.
According to the results the PSX revenue from exchange operations posted 81 percent increase to Rs531 million during first nine months of the current fiscal year as compared with Rs294 million in the corresponding months of the last fiscal year.
Similarly, the revenue from listing fee also posted 36 percent increase to Rs410 million during first nine months of the current fiscal year as compared with Rs302 million in the same period of the last fiscal year.
However, mark-up/interest income of the stock exchange reduced to Rs58 million during the period under review as compared with Rs113.52 million in the corresponding period of the last fiscal year.
Administrative expensive of the stock exchange increased to Rs908 million during nine-month period ended March 31, 2021 as compared with Rs846 million in the corresponding period of the last fiscal year.
The income on share of profit from associated also increased to Rs427 million during July – March 2020/2021 as compared with Rs284 million in the same period of the last fiscal year.
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Weekly Review: market to remain bullish
KARACHI: The stock market likely to move in positive zone during next week owing to financial results and improved exchange rate.
Analysts at Arif Habib Limited said that the market to remain bullish in the upcoming week. With the commencement of result season, we believe Oil and cyclical sectors will be under limelight on the back of healthy earnings expectations.
Additionally improvement in macroeconomic indicators and appreciation of PKR/USD parity will keep investors’ sentiments positive.
However, any further increase in domestic COVID-19 infection ratio may dampen investor’s sentiments.
The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) is currently trading at a PER of 6.8x (2021) compared to Asia Pac regional average of 16.3x while offering a dividend yield of around 7.1 percent versus 2.6 percent offered by the region.
This week trading commenced on a negative note with the index retreating by 208 points on Monday amidst the ongoing third wave of Covid-19 (threat of lockdown as per NCOC’s proposal given rise in infection ratio).
However, bulls took charge on Tuesday as positive sentiments were fueled by i) Slowdown in infection ratio, ii) Surge in international oil prices by 3.6 percent WoW resulting in buying across heavy-weight E&P scrips, iii) Expectation of outstanding quarterly results, iv) Large Scale Manufacturing inching up by 7.45 percent in 8MFY21, and v) Forex reserves climbing to a 5-year high of $23.2 billion. The KSE-100 index closed at 45,306 points, up by 119 points or 0.26 percent WoW.
Contribution to the upside was led by i) Commercial Banks (81 points), ii) Technology and Communication (78 points), iii) Fertilizer (43 points), iv) Automobile Assemblers (25 points), and v) Oil and Gas Exploration Companies (18 points). Scrip-wise major gainers were TRG (60 points), FFC (60 points), BAHL (22 points), EFERT (21 points), and HBL (20 points). Whereas, scrip-wise major losers were ENGRO (47 points), HUBC (27 points), PSO (27 points), SEARL (21 points) and DGKC (20 points).
Foreigners offloaded stocks worth of $1.0 million compared to a net sell of $9.5 million last week. Major selling was witnessed in all other Sectors (USD 2.64mn) and Commercial Banks (USD 1.31mn). On the local front, buying was reported by Individuals (USD 9.77mn) followed by Other Organization (USD 3.91mn). That said, average daily volumes and traded value for the outgoing week were down by 10 percent and 18 percent to 368mn shares and USD 100mn, respectively.
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Share market gains 75 points amid thin trading volume
The share market saw a modest rise on Friday, with the benchmark KSE-100 index of Pakistan Stock Exchange (PSX) gaining 75 points. The index closed at 45,306 points, up from the previous day’s close of 45,230 points. This upward movement comes despite a significant reduction in trading volumes during the day.
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Stock market ends down by 81 points in range bound trading
KARACHI: The stock market fell by 81 points on Thursday in a range bound trading activity during the day.
The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 45,230 points as compared with previous day’s close of 45,311 points, showing a decline of 81 points.
Analysts at Topline Securities said that Pakistan equities closed slight negative with benchmark KSE-100 Index settling at 45,230 level.
Range bound activity was witnessed throughout the day where KSE-100 Index moved between intraday high and low of 136 and 137 points respectively. Investor interest was mainly witnessed in blue chips stocks.
OGDC, FFC and ENGRO were the major gainer in today’s trading session. Investors opted to tread with caution amid the ongoing rise in COVID19 cases and upcoming result season.
Activity in the wider market was relatively dull as Rs.12.58 billion worth of shares exchanged hands, down 24 percent on DoD basis. The volume leader for today was TELE with 73.57mn shares exchanging hands.
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Stock market gains 262 points on corporate results
KARACHI: The stock market gained 262 points on Wednesday as investors were remained positive on quarterly financial corporate results.
The benchmark KSE-100 index closed at 45,311 points as against previous day’s closing of 45,048 points, showing an increase of 262 points.
Analysts at Arif Habib Limited said that first day of Ramadan marked positive opening for the benchmark KSE100 index with an overall increase of 299 points during the session and closed +262 points.
Proximity to announcement of quarterly corporate results made investors take a positive view on the market. Buying activity was observed in cyclical sectors such as Autos, Cement and Steel. O&GMCs saw SNGP performing, besides Refinery and Technology stocks where NETSOL hit upper circuit today.
Among scrips, FNEL remained the volume leader with 43.1 million, followed by MDTL (20.2 million) and GGL (19.5 million).
Sectors contributing to the performance include Technology (+46 points), Cement (+35 points), Banks (+29 points), E&P (+26 points) and Refinery (+24 points).
Volumes declined from 473.4 million shares to 341.9 million shares (-28 percent DoD). Average traded value also declined by 11 percent to reach US$ 108.5 million as against US$ 120.7 million.
Stocks that contributed significantly to the volumes include FNEL, MDTL, GGL, TRG and WTL, which formed 35 percent of total volumes.
Stocks that contributed positively to the index include TRG (+32 points), FFC (+19 points), HBL (+19 points), LUCK (+18 points) and ATRL (+17 points). Stocks that contributed negatively include MCB (-12 points), POL (-9 points), ABL (-4 points), KTML (-3 points) and UNITY (-3 points).
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Share market gains 71 points in narrow range trading
KARACHI: The share market increased by 71 points on Tuesday in narrow range trading session, analysts said.
The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 45,048 points as against previous day’s closing of 44,978 points, showing an increase of 71 points.
Analysts at Arif Habib Limited said that the market traded in a narrow range between -198 points and +155 points, closing the session +71 points.
Main board scrips have largely been in consolidation and today was no different. Banking sector stocks inched up with particular interest in UBL, especially by the end of session.
Technology stocks witnessed a see-saw moment when NETSOL rebounded and hit upper circuit, whereas TRG (which went upper circuit yesterday) bore selling pressure and traded below LDCP. Among small caps, GGL, GGGL, HUMNL and TELE remained in the limelight.
Among scrips, FNEL topped the volumes with 106.5 million shares, followed by UNITY (29.8 million) and BYCO (28.5 million).
Sectors contributing to the performance include BANKS (+89 points), O&GMCs (+15 points), Technology (-59 points), and Power (-19 points).
Volumes declined from 503.5 million shares to 473.4 million shares (-6 percent DoD). Average traded value also declined by 8 percent to reach US$ 120.8 million as against US$ 130.7 million.
Stocks that contributed significantly to the volumes include FNEL, UNITY, BYCO, TRG and WTL, which formed 47 percent of total volumes.
Stocks that contributed positively to the index include UBL (+28 points), HBL (+18 points), BAHL (+17 points), SNGP (+13 points) and FFBL (+12 points). Stocks that contributed negatively include TRG (-67 points), ENGRO (-28 points), HUBC (-19 points), MLCF (-4 points) and KOHC (-4 points).
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Equity market falls by 208 points on imposing lockdown proposal
KARACHI: The equity market witnessed a decline of 208 points on Monday after possibility of imposition of lockdown in the light of NCOC proposal, analysts said.
The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 44,978 points as against last Friday’s closing of 45,186 points showing a decline of 208 points.
Analysts at Arif Habib Limited said that Market took toll from possibility of imposition of lock down in the light of NCOC proposal, although a firm decision is yet to be taken.
Selling pressure was evident across the board with the exception of few scrips, including TRG, GGL, MCB and FFC, which somewhat supported the index. Overall the index lost 428 points during the session and closed the session -208 points.
Refinery sector, which has lately coincided with technology stocks also went down following weak investor sentiment. Among scrips, WTL topped the volumes with 73.7 million shares followed by TRG (42.1 million) and GGL (38.8 million).
Sectors contributing to the performance include O&GMCs (-36 points), Banks (-32 points), Pharma (-26 points), Chemical (-23 points) and Cement (-23 points).
Volumes declined from 688 million shares to 504 million shares (-27 percent DoD). Average traded value also declined by 21 percent to reach US$ 130.7 million as against US$ 165.9 million.
Stocks that contributed significantly to the volumes include WTL, TRG, GGL, TELE and BYCO, which formed 42 percent of total volumes.
Stocks that contributed positively to the index include TRG (+98 points), FFC (+24 points), MCB (+19 points), EFERT (+12 points) and LUCK (+6 points). Stocks that contributed negatively include ENGRO (-44 points), PSO (-25 points), OGDC (-22 points), SEARL (-21 points) and UBL (-16 points).
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SBP governor highlights measures to boost debt, capital markets
KARACHI: Dr. Reza Baqir, Governor, State Bank of Pakistan (SBP) has highlighted measures taken by the central bank to boost the debt and capital markets of the country.
He was addressing at the Gong Ceremony to mark the beginning of a new chapter of cooperation between SBP and Pakistan Stock Exchange (PSX) on multiple initiatives.
SBP and PSX have recently been working closely to improve and widen the access of capital market participants to government debt securities; facilitate investments by non-residents in the stock exchange; remove bottlenecks hindering companies from leveraging against shares of their group companies; and, developing information sharing arrangements between banks and capital markets.
Speaking on the occasion, Governor SBP, Dr. Reza Baqir said he was pleased to visit PSX for this Gong ceremony as it marked the commitment of SBP and PSX to work together for the deepening of debt and capital markets in Pakistan and improving financial intermediation. He made three important announcements in this regard.
First, he said that SBP has revised the Rules governing appointment of primary dealers for the Government’s debt securities. This will expand the list of institutions eligible to work as primary dealers, including Security Depositories and Clearing institutions. This measure is aimed at widening the investor base of government securities, improving liquidity, enhancing transparency and promoting market development. In addition, SBP has relaxed the selection and performance criteria for development finance institutions (DFIs), investment banks and brokerage houses to encourage them to become part of the primary dealer system, which is currently dominated by banks. Hence, among other privileges offered to primary dealers, a larger and more diverse group of institutions will now have direct access to primary auctions.
He said that while the government debt market in Pakistan is well developed and liquid, participation of capital market clients has historically been limited and SBP wants to encourage wider ownership of Government securities among retail investors. The Governor SBP noted that the revised primary dealer Rules will cater to the needs of a diverse group of investors, including capital market clients, corporates and individuals, and will attract a new clientele to the government securities market. Governor Baqir shared that this measure has been taken after detailed discussions with stakeholders and a comprehensive review of international best practices.
Second, Governor Baqir said that SBP has made changes in its prudential regulations to facilitate the sponsors, shareholders and companies in raising more financing against the security of shares of their group companies. He highlighted that this amendment will help sponsors and companies in raising liquidity for further investment in new business opportunities and ventures, in turn leading to greater economic activity. This regulatory change would also benefit the capital markets by encouraging sponsors of companies to consider listing on the stock exchanges. As a result, it will also promote documentation of the economy, transparency, and good corporate governance practices.
Third, Dr. Baqir, apprised the audience that SBP and PSX are jointly working on expanding the scope of KYC information sharing arrangements between banks and Central Depository Company of Pakistan (CDC) or National Clearing Company of Pakistan Limited (NCCPL) for existing bank account holders. He was delighted to reveal that the tangible progress has been made and was hopeful that this important initiative will be successfully rolled out by the end of the next month. He further added that such arrangements will facilitate capital market players in mobilizing domestic resources and channeling them effectively to productive uses.
The Governor SBP was warmly welcomed by the Chairman of the Board, PSX, Mr. Sulaiman S. Mehdi; Board Members of PSX; MD & CEO of PSX, Mr. Farrukh Khan; and senior management of PSX. Also present at the Gong Ceremony were senior members of the Market, Bank Presidents and Treasury Heads, along with senior management of SBP.
Welcoming the SBP Governor to PSX, the MD PSX, Farrukh Khan, said that he was confident that the visit of Governor Reza Baqir to Pakistan Stock Exchange will mark the beginning of a new collaborative journey dedicated to greater coordination between PSX as the frontline regulator of the capital market and SBP as the regulator for the banking industry in the country. This greater coordination would help to promote and foster an environment of increased activity in terms of online initiatives, the recently launched Roshan Digital Accounts for Overseas Pakistanis, and Government Debt Securities, amongst other segments. He further stated that the journey of added cooperation and between PSX and SBP will benefit all stakeholders of the capital market, the banking industry and the economy of Pakistan. He expressed confidence that SBP and PSX will together be able to lay a pathway for facilitating greater online participation in terms of account opening and activity by brokers and investors, as well as for increasing the number of investors investing in different asset classesin the capital market of Pakistan.
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Weekly Review: positive sentiment may prevail
KARACHI: Positive sentiments are likely to prevail in the stock market during the next week due to result season is commencing and investors hope healthy earnings.
Analysts at Arif Habib Limited said that market to remain bullish in the coming week.
With the result season commencing from next week, we believe cyclical sectors / scrips will be under the limelight on the back of healthy earnings expectations.
Keeping in view the smart lockdowns in place in hotspot areas and aggressive vaccination drive by the Government, a complete lockdown is unlikely.
With the Eurobonds proceeds helping SBP reserves cross USD 16 billion (highest level since July 2017), the analyst expect the PKR/USD parity to remain strong.
The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) is currently trading at a PER of 6.8x (2021) compared to Asia Pac regional average of 16.4x and while offering DY of 7.1 percent versus 2.6 percent offered by the region.
The market commenced on a negative note this week given 5,000+ cases being reported daily, due to which hotspot areas are again under smart lockdown and business timings have reduced.
Moreover, IMF and World Bank forecasted GDP growth at 1.5 percent and 1.3 percent, respectively in FY21, which are lower than SBP’s projection of 3 percent.
Moreover, news came in regarding extension of the Debt Servicing Suspension Initiative (DSSI) till December 2021 which was welcomed in the local bourse.
Alongside this, expectation of robust quarterly results kept the index in the green. The market closed at 45,186 points, gaining 886 points (up by 2 percent) WoW.
Sector-wise positive contributions came from i) Cement (280 points), ii) Technology & Communication (256 points), iii) Textile Composite (65 points), iv) Engineering (58 points) and v) Power Generation & Distribution (57 points).
Sectors that contributed negatively include i) Commercial Banks (40 points), ii) Auto Assembler (22 points) and iii) Fertilizer (21p points). Scrip-wise positive contributors were TRG (251 points), LUCK (124 points), DGKC (45 points), HUBC (34 points) and NRL (33 points) while negative contributors included FFC (24 points), BAHL (20 points) and INDU (17 points).
Foreign selling continued this week clocking-in at USD 9.5 million compared to a net sell of USD 4.9 million last week. Selling was witnessed in Commercial Banks (USD 4.2 million) and Fertilizer (USD 3.0 million). On the domestic front, major buying was reported by Banks / DFIs (USD 3.2 million and Companies (USD 2.5 million). Average volumes arrived at 410 million shares (up by 9 percent WoW) while average value traded settled at USD 122 million (down by 9 percent WoW).