Bears consolidate their position at PSX amid political turmoil

KARACHI: stocks closed bearish for the 1/3 consecutive day amid political turmoil and pressure in oil stocks because of plunge in world crude prices. The KSE 100 index shed further 237.95 aspects to close at 40526.81 level.
Market used to be partly driven hence of disclosure of economic results of various companies of which PIOC and MTL supported the index with the aid of 12 features cumulatively as a consequence of offering above anticipated results while HUBC dragged the index by using 33.08 facets due to shrink than predicted gains. For the period of mid-day buying and selling, information studies surfaced concerning EFERT being granted a keep order in opposition to the gathering of GIDC, allowing the scrip to hit intra-day excessive of Rs sixty six.31 per share, mentioned document via international study.
Fertilizer shares outperformed the index on powerful monetary results. Political uncertainty, weak economic outlook and predominant fall in world equities performed a catalyst function within the bearish close at PSX, stated senior analyst Ahsan Mehnti.
Volumes in the course of the day reduced by means of 5.4 percentage to 348 million shares while worth accelerated via thirteen percentage to Rs 12.9 billion /$124 million.. On Tuesday 367 million shares worth Rs eleven billion exchanged arms. Volumes have been led with the aid of k-electric and financial institution of Punjab with 60 million and forty one million shares traded respectively. Other quantity leaders had been Dost steel (27 million), Engro Fertilizer (14 million), Hum community (12 million) and TRG Pak (12 million).
Outcome announcements: MCB financial institution announced 3Q2016 consolidated earnings of Rs 6.9 billion (EPS Rs 6.2) as compared to Rs 6.6 billion (EPS Rs 5.9) within the equivalent interval final yr. Alongside the outcome, bank also introduced intervening time cash dividend of Rs 4 per share, in addition to Rs 8 per share interim dividend already paid in the course of the year. The outcome were above market expectations. Earnings of MCB in 3Q2016 increased with the aid of four percent YoY in general driven via accelerated non-curiosity sales, up 58 percentage YoY to Rs 5.8 billion. Non-curiosity income of the financial institution extended due to greater obtain on sale of securities of Rs three.Four billion in 3Q2016 towards Rs 1.1 billion in 3Q2015. Net curiosity income (NII) of the financial institution was once down 13% YoY to Rs10.5bn.
Fauji Fertilizer manufacturer also announced 3Q2016 outcome, reporting profit of Rs 3.7 billion (EPS Rs2.94), down 10 percent YoY. Revenues stood at Rs 18.6 billion, up sixteen percent YoY. As per market estimates, gross profit margins fell by way of 7.6ppts YoY to 34 percent for the duration of the outgoing quarter (after adjusting for different earnings).Moreover, finance cost of the organization rose to Rs842mn, witnessing a thirteen percentage rise YoY. The enterprise also announced cash dividend of Rs1.Seventy five per share.
Hub vigor manufacturer announced its 1QFY17 consolidated economic outcome, reporting revenue of Rs 2.5 billion (EPS Rs2.Thirteen), down 3 percentage YoY. Revenues fell eleven percentage YoY, to Rs 23.9 billion. The company posted a gross revenue of Rs four.1 billion, down 8 percentage on the again of higher operating charges in the course of the outgoing quarter. Admin expenditures stood at Rs 350 million, displaying an increment of 8 percent YoY. The organization also announced money dividend of Rs1.50 per share
Political scenario: For the final couple of weeks the percentage market, despite positive sentiments, is underneath regular stress and witnessing bearish spells mostly as a result of the unsure political end result of a sit down-in and blockade of Islamabad introduced with the aid of PTI’s Chief Imran Khan. Analysts are expecting special viable effects and their impacts on Pakistan stock market. Analysts at Topeline Securities have drawn six feasible effects of sit down-in and blockade of federal capital.(1) The sit down-in happens as planned.