Karachi, February 13, 2020: Pakistan equities closed Thursday on a negative note with benchmark KSE100 Index losing 76 points, closing at 40,455 levels, down 0.2 percent.
Pakistan and the International Monetary Fund (IMF) have agreed that there would be no mini-budget or a reduction in the tax collection target till the end FY20 but however, we did see some jitteriness later on in the second half as the cut off yield of T-Bills for 1yr has increased by 39bps.
The Financials, FABL (-5.9 percent) announced its CY19 reported EPS at Rs3.96 vs Rs3.18 (SPLY) with no cash payout. AKBL (+3.6 percent) also announced its CY19 consolidated EPS of Rs5.58 vs Rs3.51 (SPLY) with DPS of Rs1.50. In the Cements DGKC (+4.5 percent) reported 1HFY20 consolidated loss of Rs2.16/share vs earnings of Rs1.14/share in 1Q. PPL (-1.1 percent), LUCK (-1.5 percent), MCB (-0.3 percent), PSO (-1.5 percent), ENGRO (-0.1 percent), OGDC (-0.8 percent) and FFC (-0.2 percent) cumulatively contributed -80 points towards the negative index close.
Furthermore, major contribution to total market volume came from UNITY (+5.8 percent), DGKC (+4.5 percent), BOP (-0.9 percent), MLCF (-0.9 percent) and HASCOL (-2.0 percent). However, going forward we expect market to remain sideways in the short term on the back of uncertainty on the political front.