Market watch: Stock market takes beating on disappointing earning reports

Benchmark KSE-100 index falls 119.51 points.

KARACHI:

The stock market managed to fend off bearish selling at the start of the day on Tuesday, but eventually declined in the red as earning reports failed to lift spirits.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index fell 0.46% or 119.51 points to end at 25,884.8 points.

“Pakistan equities opened sideways before drifting, as mounting investor uncertainty along with disappointing earnings announcement and payouts below expectations fuelled further down-slide with index at one point sinking -1.6%,” said Fareesa Baig of Elixir Securities.



“Hub Power Company (HUBC PA -5%) and Kot Addu Power Company (KAPCO PA -5%) surprised with their earnings announcements, letting investors down with former’s earnings and payout clocking in below estimates at Rs2.54 per share, down 38% YoY along with a cash payout of Rs2.5 per share, while the latter announced Rs3.23 per share, down 23% YoY and payout of Rs2.75 per share, both concluding the day at their lower price limits,” Baig commented.

The uncertainty continued to affect the market sentiment. Hubco and Kapco announced disappointing 2QFY14 results, consequently both declined by 5%. FCCL announced a cash dividend of Rs0.75/share and BAHL announced a bonus issue of 10% with a dividend of Rs2/share that boosted investor confidence in these stocks.

Trade volumes rose to 225 million shares compared with Monday’s tally of 174 million shares.

Shares of 388 companies were traded on Tuesday. At the end of the day, 152 stocks closed higher, 222 declined while 14 remained unchanged. The value of shares traded during the day was Rs7.4 billion.



Fauji Cement was the volume leader with 18.84 million shares, gaining Rs0.31 to finish at Rs15.94. It was followed by Lafarge Pakistan with 17.13 million shares, gaining Rs0.53 to close at Rs10.54 and Askari Bank with 12.79 million shares, losing Rs0.03 to close at Rs14.31.

Foreign institutional investors were net buyers of Rs212 million, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, February 19^th, 2014.

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