KARACHI: Uncertainty at the political front in the country led benchmark KSE 100 index to decline by 539.5 points or 1.35 percent, to close below 40,000 level at 39,987 points.
“Weakness in wider market was prevalent from word go with stocks skidding lower and failing to find support from investors despite earnings announcements by major companies, while concerns mounted after Islamabad High Court barred PTI from shutting down the federal capital- the decision that was later challenged by PTI as they reaffirmed holding out protests on November 2. Second and third tier stocks took the worst hit on Thursday as investors resorted to panic-selling as with over 70 stocks closing at their respective lower price limits,” said Ali Raza, equity analyst at Elixir Securities.
“Oil stocks battered on lower global crude prices. Strong results in fertilizer, banking and oil sector failed to support weak sentiments as political leaders court allegations and called for sit in protests in the capital next week,” said senior analyst Ahsan Mehnati.
Overall, volumes increased to 384 million shares, while value decreased by 3.9 percent to Rs 12.4 billion/$119 million.
Bank of Punjab remained the volume leader with 41 million shares traded while NIB Bank, TRG Pakistan, K-electric, WorldCall Telecom followed with 23 million, 22 million, 18 million and 17 million shares respectively.
Result announcement: NBP has posted consolidated NPAT of Rs 13.6 billion (EPS: Rs 6.40) in 9MCY16 as compared to NPAT of Rs 12.3 billion (EPS: Rs 5.78) in 9MCY15, up 11 percent YoY. “Sequentially, however, we saw 41 percent QoQ decline in earnings on the back of 28 percent QoQ/20 percent QoQ drop in Net Interest Income/Non-funded income despite lower taxation expense (down 52 percent QoQ) and higher gains utilization (53 percent QoQ), said report by AKD Securities.
Oil and Gas Development (OGDC) declared 1QFY17 earnings of Rs 14.6 billion (EPS Rs 3.4), down 20 percent YoY. This result announcement was in-line with market expectations. The result also accompanied a cash dividend of Rs1.5/share. OGDC’s net sales declined by 11 percent YoY to Rs 39.5 billion in 1QFY17, mainly on account of 14 percent YoY fall in Arab Light Crude oil prices to $43/bbl during the period. During 1QFY17, OGDC’s oil volumes increased by around 4 percent YoY to 40,000 barrels of oil per day (bopd), while gas volume shrunk by~5% to 1,074mmcfd as per provisional numbers. OGDC booked exploration charges of Rs 4.3 billion, up 139 percent YoY in 1QFY17. “In absence of any dry wells, we attribute this increase to enhanced geophysical survey and outsourced seismic activity. However, we await management clarity in this regard”, said report by Topline Securities.
Lucky Cement also announced consolidated 1QFY17 earnings of Rs3.8 billion (EPS Rs11.7), up 15 percent YoY. This result was above market estimates. In 1QFY17, Lucky Cement posted consolidated revenue of Rs 19.8 billion, up 5 percent YoY primarily due 9 percent YoY revenue growth achieved by ICI Pakistan (ICI), subsidiary of LUCK. This revenue growth was primarily on the back of 37 percent higher revenues generated from ICI’s Life Science business. On standalone basis, revenues grew by 2% YoY to Rs10.6bn. Local sales exhibited excellent volumetric growth of 25% YoY to 1.3mn tons while exports performance declined by 27% YoY to 0.4mn tons.
Engro Corporation announced 3Q2016 consolidated earnings (attributable to the equity holders of holding company) of Rs3.1bn (EPS Rs5.85) as compared to Rs874mn (EPS Rs1.67) in the same period last year. The result also accompanied a cash dividend of Rs8.0/share.
Analysts expect a volatile day today with anxiety persisting as nervous investors hope for a peaceful way out. Chartists however see further declines towards 39,300 levels.