Market watch: Earnings announcements keep interest alive

Benchmark KSE-100 index rises 9.25 points


Our Correspondent January 27, 2016
Benchmark KSE-100 index rises 9.25 points.

KARACHI: After spending the morning session in the red, Pakistan equities gained on excitement over results announcements to close little unchanged.

Dip in crude oil prices meant the index-heavy sector lost most of its gains in the previous two sessions.

However, announcement of October-December quarter results kept participants interested.

At close on Tuesday, the Pakistan Stock Exchange’s (PSX) benchmark KSE 100-share index rose 0.03% or 9.25 points to end at 31,074.38.



Elixir Securities analyst Faisal Bilwani said limited institutional interest was witnessed for most of the day. “Fertilisers; Fauji Fertilizer Company Limited (FFC +2.99%) gained on better than expected volumetric sales coupled with Fauji Bin Qasim Limited’s (FFBL PA +2.63%) 2015 earnings and pay-out that beat street estimates.

“Cements were also higher as more investors now see a rate cut in monetary policy while participants also remain excited over earnings due by major players in days ahead.

“Engro Foods (EFOODS PA +4.0%) gained on a low turnover ahead of 2015 earnings announcement due on Wednesday where we see over a 3.8 times jump in earnings on a year over year basis,” said Bilwani.

“We expect range bound activity in the wider market while profits and pay-outs will keep selective interest alive with benchmark consolidating near 31,000 points during the on-going week,” he added.

Meanwhile, JS Global analyst Ahmad Saeed Khan was of the view that volatility prevailed in Tuesday’s session amid tumbling global crude oil prices and deepening concerns about regional and global growth.



“Intraday recovery in global crude oil prices created a limited rally in the sector towards the end.

“International Steels Limited (ISL +2.24%) witnessed a rally after it announced its financial results, showing a profit of Rs124m in Oct-Dec, although a loss in half year consolidated,” said Khan.

“Fauji Fertilizer Bin Qasim Limited also rallied after releasing its full year 2015 results, with a dividend of 30.5% (Rs3.05/share) and an EPS of Rs4.35, better than market expectation.

“Moving forward, we expect the market to continue in the current state and follow the trend of its regional peers,” he concluded.

Trade volumes fell to 107 million shares compared with Monday’s tally of 129 million shares.

Shares of 303 companies were traded. At the end of the day, 126 stocks closed higher, 155 declined while 22 remained unchanged. The value of shares traded during the day was Rs6.59 billion.

Fauji Fertilizer Company Limited was the volume leader with 8.1 million shares, gaining Rs1.27 to finish at Rs49.64. It was followed by TRG Pakistan Limited with 7.8 million shares, gaining Rs0.36 to close at Rs27.46 and Dera Ghazi Khan Cement with 6.8 million shares, gaining Rs5.11 to close at Rs149.79.

Foreign institutional investors were net sellers of Rs566 million worth of shares during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, January 27th, 2016.

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