PakStox Outlook

Pakistan: Secondary market yields down up-to 72bps.   3Y PIB yield down by 36bps to 18.23% followed by 72bps decline in 5Y PIB to 15.16% and 38bps decline in 10Y PIB to 15.24%. Oil continues to be weak.  WTI trading below $69 and Brent below $75. Russian and Saudi officials met to discuss oil market stability. US Stocks regains as European market recouped   losses of day before yesterday. Dow Jones closed up 372 points at 32,247. As anticipated, the ECB increased interest rates  on Thursday by 50 basis points, bringing borrowing costs to their highest level since late 2008. The whole WTI futures  curve is now below the bottom range of $67-$72 a barrel given by the White House to buy crude for the SPR.

Share Price (Rs.) 1 Month 3 Month 1 Year 24.43 -4.54% 4.54% 57.56% LOTCHEM announced,  for the year ending December 2022, an annual earnings per share of Rs. 6.68 (vs. Rs. 3.07 last year)  and a cash dividend of Rs. 2 per share, in addition to the Rs. 4 per share cash dividend announced at the half-year. The company has changed hands, so new owners may change dividend payout policy. LOTCHEM earned a profit after tax of Rs. 10.1 billion for the year ending December 2022. This is higher by 117% over PAT of Rs. 4.64 billion last year. This substantial rise in PAT is primarily because of increase in Sales by 49% over last year and higher gross profit margin of 17.7% compared to GP margin of 11.28% last year. This growth in the PAT is despite a 144% increase in “other operating expenses” and more than doubling ‘“finance costs’. The tax rate for LOTCHEM this year was also high, at 36%, compared to 29% last year. On a quarterly basis, EPS in the fourth quarter was Rs. 1.33, declining...

Dow Jones Index closed at 31875 down 280 points, after recouping some of intra-day losses of 700 points. SVB collapse ramifications. US Bank Index down almost 30% in last one and a half month. Banking sector decline intensified after Saudi refusal to come to Credit Suisse rescue by increasing stake. Credit Suisse borrowed more than $50 billion from Swiss National Bank after shares crash 30%. Credit Suisse was founded in 1856, is one of the biggest financial institutions in the world and categorized as a “global systemically important bank,” along with just 30 others, including JP Morgan Chase, Bank of America and the Bank of China. WTI below $68 and Brent below $74 on panicky stock market conditions. Oil price was more than 5% down in todays session, Oil is at 15 months low now. Downturn has pushed price action toward the 200-week MA (moving average), providing support at $66.00. Read More. Gold trading at +19k on safe haven considerations. May not remain so if panic about market d...

Reversing the declining trend  Dow Jones Index closed up 1.06% at 32,155 adding +336. Initially DJI had lost all intra day gains by 3:15. But recouped losses in last 45 minutes. Brent Trading below $80. US Dollar Index at 103.5 is at month's low. Saudi Arabia deposit of $5 bln enters Turkish central bank accounts. Ankara already has a total $28 billion currency swap deals with the United Arab Emirates, China, Qatar and South Korea. Turkey’s net foreign exchange reserves have rebounded from just over $6 billion last summer, when they were at their lowest in at least 20 years. Read More. US CPI report showed that monthly inflation rose by 0.4% in February from January, in line with expectations, resulting in annual inflation slowing to 6%, the lowest since September 2021. Still, the same report showed that core inflation exceeded expectations, underscoring a still challenging macro environment.

CPI US report showed that monthly inflation rose by 0.4% in February from January, in line with expectations, resulting in annual inflation slowing to 6%, the lowest since September 2021. Still, the same report showed that core inflation exceeded expectations, underscoring a still challenging macro environment. WTI crude futures fell toward $74 per barrel on Tuesday, extending losses from the previous session as the collapse of SVB raised fears on risky assets. Dow Jones slid further on fifth day in a row and closed at 31,819 down 0.28% (-90 points). The Nikkei 225 Index plunged 2.4% today. Gold above 19k as US Dollar Index slides below 104.

Maple Leaf Cement (MLCF) has acquired 15% of Pioneer Cement (PIOC). See this and this. Government bond yields extended decline , as investors pared bets of higher interest rates and looked for safety after the collapse of Silicon Valley Bank. The US 10-year Treasury yield fell to a five-week low of 3.5% and the 2-year yield lost nearly 50bps to 4.05%, marking the largest three-day slump since 1987. In Germany, 10-year yield fell nearly 30bps to 2.17% and the UK Gilt was down to 3.27%

MARI earned Rs. 83.6  per share in the second quarter ending December 2022. The company also announced a cash dividend of Rs. 89 per share. EPS in second quarter was almost 12% down on Ist quarter, but increased 49% on the same quarter last Year. MARI boosted the cash dividend to Rs. 89 in Dec 22 compared to Rs. 62 per share in December 2021. Sales was down more than 8% compared to the Ist quarter. Exploration Cost in the 2nd quarter was substantially higher than first quarter this year. MARI: Mari Petroleum Co ttm Dec22 Sep22 Jun22 Mar22 Dec21 Q2 - 2023 Q1 - 2023 Q4 - 2022 Q3 - 2022 Q2 - 2022 EPS (Rs.) 303 83.56 95.31 42.01 81.63 56.00 Cash Dividend (Rs./share) 151 89 0 62 0 62 Net Income After Taxes (RsMill) 40,355 11,147 12,715 5,604 10,889 7,471 MARI's twelve-month trailing EPS is now Rs. 303 and a twelve-month trailing cash dividend is Rs. 151 per share, translating into a  PE of 4.94 and a dividend yield of 10.1%. At times the Company's production is hampered by rai...

MARI is trading at Rs. 1495 (as of market close Mar 10, 2023) down 15.86% in one year compared to 4.7% decline on KSE100 Index. MARI share price had reached a 52-week high of Rs. 1815. MARI is trading at a low earning multiple of 4.94  and price to book of 1.41. Its twelve months trailing yield is 10%. Share Price (Rs.) 1 Month 3 Month 1 Year 1,495.46 0.29% -10.47% -15.86% MARI Price Chart https://www.pakstox.com/2023/03/mari-brief-intro-background.html https://invst.ly/-iitc

Mari Petroleum Company Limited (PSX:MARI)  an integrated exploration and production company, currently managing and operating Pakistan’s largest gas reservoir at Mari Gas Field, Daharki, Sindh. MARI is the second largest gas producer in Pakistan and owns the second highest reserves base, and has a 23% market share. The Company’s net daily production is over 100,000 barrels of oil equivalent.   MARI is key to Urea production in Pakistan.  Around 90% urea production in the Country is based on MARI supplied gas. The Company also supplies gas for power generation and distribution companies. MARI has grown from the sale of natural gas from an inherited field, to the exploration, production, and sale of gas, oil and other petroleum products from a number of fields in all provinces of Pakistan. Previously MARI worked under a fixed return formula with a cap on distribution of distribution. That cap on distribution has been removed as per a new agreement with the Govt of...