Pakistan Weekly September 14, 2018 REP‐057 Topline Market Review KSE‐100 Index: +0.2% WoW (+65 points) Topline Research Best Local Brokerage House [email protected] Brokers Poll 2011-14, 2016-17 Tel: +9221‐35303330, Ext: 133 Topline Securities, Pakistan www.jamapunji.pk Best Local Brokerage House 2015-16 Equities erase early week’s losses to close flat, up by meager 0.8% wow Market Weekly Data KSE Volume & Value KSE‐100 Index 40,920.31 (Shares mn) Volume Value (US$mn) 1‐Week Change (%) 0.2% 160 60 134 Market Cap (Rs tn) 8.5 108 50 1‐Week Change (%) ‐0.3% 82 40 Market Cap (US$ bn) 68.1 56 30 30 1‐Week Change (%) ‐0.3% 18 18 18 18 18 ‐ ‐ ‐ ‐ 1‐Week Avg. Daily Vol (shares mn) 139.0 ‐ p p p p p ee ee ee ee ee S S S S S ‐ ‐ ‐ ‐ 1‐Week Avg. Daily Value (Rs bn) 5.8 ‐ 11 12 13 14 1‐Week Avg. Daily Value (US$ mn) 46.7 10 Source: PSX Source: PSX KSE‐100 index closed flat in the week under review, as the market added a meager 65 points to the index. Market remained range‐bound due to mixed news on economic measures to be taken by new government. At the start of the week, market was abuzz with possibility of a gas price hike which resulted in negative sentiment among investors. However the market rebounded as investors anticipated clarity on economic measures in the meeting of ECC held on 13 Sep, 2018. During the week, Oil & Gas Exploration Companies and Fertilizers were the best performing sectors, the former due to increase in oil prices during the week and the latter due to no change in gas prices despite rumors. On the other hand, Commercial Banks were seen under pressure as a result of foreign selling amounting to US$12.1mn. Foreigners sold US$26.1mn worth of shares during the week vs. net selling of US$9.9mn last week. On local front, insurance companies and mutual funds were net buyers amounting to US$11.8mn and US$10.6mn, respectively. ToplineHonda AtlasMarket Cars Review (HCAR) 2 Important News, Views & Corporate Announcements OiOrix LiLeasing PkitPakistan (OLPL) announced its financ ia l result for FY18,reporting EPS of Rs10.05,upby 9% YYYoY. The increase in earnings was primarily led by 66% increase in income from other activities. Simultaneously, 3% decline in expenses also supported the bottom‐line. The company announced cash dividend of Rs3/share for 4QFY18, as well as a bonus of 20%. Kohinoor Mills (KML) reported its earnings for FY18, wherein its EPS clocked in at Rs4.70, up by 79% YoY. Despite 0.6ppt fall in gross margins, rise in profitability is attributable to 13.6% decline in expenses and ~2x increases in other income. The company also announced dividend of Rs1.2 per share for 4QFY18. MARI Petroleum (MARI) and Pakistan Petroleum (PPL) in a Ziarat joint venture (60% stake MARI, 40% stake PPL) have made a new oil discovery at exploratory well Bolan East‐1 in Ziarat Block, Balochistan province. The cumulative oil production is 1500bpd (Chiltan Formation at 810 bpd, Moro/Mughal Kot Formation at 690bpd). The country’s foreign exchange reserves fell by US$300mn during the week ended on Sept 7, announced the State Bank of Pakistan (SBP). The reserves of the central bank and commercial banks have been falling for the last few weeks. The SBP’s reserves declined by US$261mn while the holdings of the commercial banks by US$39mn during the week under review. The federal cabinet approved appointment of Haroon Sharif as chairman Board of Investment (BoI) – a one window facility under the Prime Minister Office for promotion of local and foreign direct investment. Criticizing the last PML‐N government for what it called wasting a lot of time, the PTI government announced that it would speed up implementation of the US$62bn China‐Pakistan Economic Corridor ((),CPEC), open it to other countries and hire international consultants for financial modeling of future projects. Federal Minister for Information Fawad Chaudhry rejected media reports that the Pakistan Tehreek‐e‐Insaf (PTI) led government was planning to increase income tax on salaried individuals, saying no such proposal was under consideration. Chaudhry's comments came after newspaper reports that the government was planning to reverse the tax concessions of the previous government and bring down the threshold of income tax exemption on salaried class. The minister also denied reports of an increase in gas and electricity tariff. ToplineHonda AtlasMarket Cars Review (HCAR) 3 KSE-100 Index KSE Market Capitalization 41,500 (US$bn) 41,050 40,920 69.00 41,000 40,684 40,760 40,522 68.50 68.37 40,500 68.13 68.00 67. 84 40,000 68.00 67.50 39,500 67.50 39,000 67.00 -18 -18 -18 -18 -18 p-18 p-18 p-18 p-18 p-18 pp pp pp pp pp ee ee ee ee ee 10-S 11-S 12-S 13-S 14-S 10-Se 11-Se 12-Se 13-Se 14-Se Source: PSX Source: PSX Market Cap . SectoSector-wise R eturn: T op 5 Gaine r / Lose r of th e w eek All Sha re In dex: T op 5 Gaine r / Lose r of th e w eek 4% 3% 3% 3% Unadjusted prices 5% 2% 40% 31% 28% 27% 26% 0% 22% 20% -5% -2% -2% -2% -2% -3% -10% 0% -15% -20% -20% -21% Food Funds Textile -27% -28% Telecom -40% -38% Vanaspati obile Parts L L T P A ngineering cellaneous M IL M Gas Explo. Gas ile Weaving AA PL AA UL mm ss PP BB OO EE TT FF TT tt && S D G Mi LE SF AT JO DK SM Oil Tex Auto AWW Source: PSX Source: PSX ToplineHonda AtlasMarket Cars Review (HCAR) 4 Top 10 Average Volume Leaders Top 10 KSE-100 Index Points Contributors 54 52 60 51 45 15.0 30 11.8 12.5 30 10.0 8.1 0 656.5 757.5 5.7 5.7 -30 -24 -26 -29 -34 5.0 -60 2.5 -90 - -120 -111 L L CF OL H C O RG ITY FFL TL BL BL PL LE LL OO MM DD DD RR TT NN WW P U H P M M N U OG DA ENG NEST Source: PSX Source: PSX Foreign: G.Buy, G.Sell & Net Sector‐wise During the Week Foreign: Buying, Selling & Net During the Week (US$mn) Gross Buy Gross Sell Net Gross Buy Gross Sell Net Oil and Gas Exploration Companies 3.2 (3.5) (0.4) 10‐Sep‐18 3.4 (4.1) (0.7) Fertilizer 2.2 (2.7) (0.5) 11‐Sep‐18 2.6 (5.1) (2.5) Cement 2.9 (11.8) (8.9) Food and Personal Care Products 0.9 (()0.9) (()0.0) 12‐Sep‐18 2.9 (9.1) (6.1) Textile Composite 0.1 (0.9) (0.8) 13‐Sep‐18 4.8 (13.1) (8.2) Technology and Communication 0.6 (0.8) (0.1) 14‐Sep‐18 5.2 (13.7) (8.5) Power Generation and Distribution 0.1 (3.0) (2.9) Commercial Banks 2.9 (15.0) (12.1) Weekly 19.0 (45.0) (26.1) Oil and Gas Marketing Companies 121.2 (1. 9) (0. 7) MthMonth to DtDate 37. 1 (73. 0) (35. 9) All other Sectors 4.8 (4.5) 0.3 Total 19.0 (45.0) (26.1) Year to Date 1,591.9 (1,892.3) (300.4) Source: NCCPL Source: NCCPL ToplineHonda AtlasMarket Cars Review (HCAR) 5 LlLocal BkBanks: GBG.Buy, GSG.Se ll& NtNet StSector‐wise DiDuring the WkWeek LlLocal BkBanks: GBG.Buy, GSG.Se ll& NtNet DiDuring the WkWeek (US$mn) Gross Buy Gross Sell Net (US$mn) Gross Buy Gross Sell Net Cement 1.4 (0.8) 0.6 10‐Sep‐18 1.1 (0.5) 0.5 Fertilizer 0.7 (0.2) 0.5 11‐Sep‐18 1.5 (1.3) 0.2 Food 0.1 (0.1) 0.0 Oil and Gas Expl. 0.6 (1.0) (0.4) 12‐Sep‐18 1.0 ()(0.6) 0.4 Oil and Gas Mark. 0.5 (0.5) 0.0 13‐Sep‐18 1.7 (1.7) (0.0) Power 0.0 (0.0) (0.0) 14‐Sep‐18 2.6 (1.1) 1.4 Banks 1.8 (1.0) 0.7 Telecom 0.5 (0.2) 0.3 Weekly 7.8 (5.2) 2.5 Textile 0.3 (0.4) (0.1) Month to Date 14.7 (9.4) 5.4 Other Sectors 1.9 (1.1) 0.9 Total 7.8 (5.2) 2.5 Year to Date 500.1 (570.4) (70.6) Source: NCCPL Source: NCCPL Local Funds: GBuyG.Buy, GSellG.Sell & Net Sector‐wise During the Week Local Mutual Funds: GBuyG.Buy, GSellG.Sell & Net During the Week (US$mn) Gross Buy Gross Sell Net (US$mn) Gross Buy Gross Sell Net Cement 5.1 (2.1) 3.0 10‐Sep‐18 2.1 (2.6) (0.5) Fertilizer 1.8 (2.9) (1.0) 11‐Sep‐18 4.5 (4.0) 0.6 Food 0.4 (0.2) 0.2 Oil and Gas Expl. 272.7 (1. 9) 080.8 12‐Sep‐18 575.7 (3. 0) 272.7 Oil and Gas Mark. 1.1 (0.3) 0.8 13‐Sep‐18 6.1 (3.2) 2.9 Power 0.8 (0.4) 0.4 Banks 7.3 (2.2) 5.1 14‐Sep‐18 7.5 (2.6) 4.9 Telecom 0.2 (0.3) (0.1) Weekly 26.0 (15.4) 10.6 Textile 282.8 (0.