Economy

PSX fells amid tensions between India and Pakistan

Karachi, February 26, 2019: Pakistan Stock Exchange (PSX) fell amid concerns of increased tensions between India and Pakistan. The fall observed after Inter‐Services Public Relations (ISPR) confirmed that Indian military jets violated Pakistan’s airspace.

Though, Indian’s claim of attacking a terrorist camp inside Pakistan was refuted by Pakistan’s official sources.  

However, the damage was mainly seen in Pakistan’s equity market as the index lost 785 points or ‐1.18 percent in a single day. This is the largest loss in 55 sessions (since Dec 06, 2018).

Where KSE Closed:

According to Topline, the KSE-100 index closed at 38,822 points level on Tuesday. This was also the first time in 32 sessions (since Jan 09, 2019) the index closed below 39,000 level.

Investor participation improved significantly as traded volumes increased by 138 percent to 162 million, while traded value rose by 90 percent to $50 million.

Trump’s Tweet effect:

With International Oil prices falling significantly after US President Donald Trump’s tweet telling OPEC to relax, E&P’s were the worst performing companies as the sector chipped away 156 points.

Dewan Cement Ltd (DCL) announced its 2QFY19 results posting an EPS of Rs0.30 down 53 percent YoY due to a 100 percent YoY decline in other income and a 40ppts YoY increase in effective tax rate.

TRG Pakistan Ltd (TRG) announced its 2QFY19 earnings, recording an LPS of Rs0.01 vs. LPS of Rs0.62 in the same period last year. The loss was because of an 87% YoY rise in operating expense, a 39% YoY increase in acquisition expenses and a 2.4x YoY rise in finance costs.

Matco Foods Ltd (MFL) revealed its 2QFY19 results, recording an EPS of Rs0.84 vs. an EPS of Rs0.66 in the same period last year. This was because of 39% YoY increase in sales, a 5.5x YoY increase in other income and a 20% YoY decline in finance cost.

Foreign Office Stance:

Speaking to media persons after an important meeting at the Foreign Office Foreign Minister Shah Mehmood Qureshi said Pakistan reserves the right to an appropriate respond to Indian intrusion as it is in violation of Line of Control (LoC). The meeting was attended by senior diplomats and former foreign secretaries.

Qureshi said war clouds are looming over Pakistan and we should be prepared. ‘We are capable of defending every inch of motherland,’ the minister said.

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