PakStox Outlook

The ‘gainers’ was a long list this week, in which the KSE100 Index gained more than 1400 points and crossed the 68k level.  In major gainers, Dawood Hercules (DAWH) tops the list, which gained 13.5% this week, closing at Rs 160.35. Normally, trading in DAWH is on the quieter side, with occasional bigger trades of blocks of shares. On March 11, 2024, DAWH announced annul results for the year 2023 and announced an EPS of Rs 21.5, a significant rise over Rs 7.67 last year. On the day of the announcement, the price was around Rs 140 and had closed down by Rs. 10 after the announcement. See the note on the results announcement here. Our Note on DAWH Annual Result In other major gainers of the week gaining more than 10%, three were from the Auto sector.  Toping that was Sazgar Engineering (SAZEW) which gained more than 12.4%. The company had announced the commencement of pre-booking of its Hybrid Electric Vehicle.  This was followed by Ghandhara Industries Limited (GHNI) that r...

Throughout the week, foreign investors, particularly foreign corporates, remained active participants in the Pakistan Stock Exchange (PSX), demonstrating sustained engagement. Their net buying activity amounted to over $3.8 million during this week. Starting in February 2024, foreign corporates have consistently shown a positive net buying trend at PSX. This follows a reduction of 50% in their cumulative net buying during the first month of this year. Since the beginning of February, foreign corporates have more than doubled their cumulative net buying at PSX. Notably, during this period, the KSE100 Index has experienced a significant uptrend, rising by approximately 10%. In contrast, overseas Pakistanis exhibited nominal net buying activity this week. Their impact on PSX direction remains limited, as their market activity tends to be sporadic and lacks significant influence.

The Pakistan Stock Exchange (PSX) maintained a strong bullish trend throughout the week, largely influenced by increased buying activity from foreign corporations. The KSE100 Index recorded a gain of 1412 points, representing a 2.1% increase compared to the previous week. It's worth noting that the trading week (1st April to 4th April) was shortened by a day due to the closure of PSX on the final day, which coincided with Jumma-tul-wida. This marks the third consecutive weekly gain for PSX. Year-to-date, the PSX has shown a modest rise of 5.8% according to the KSE100 Index, while over the past one year, the index has seen a notable increase of over 72%. Additionally, this week witnessed the KSE100 Index surpassing the historic 68,000 level, marking another milestone. Just last week, the index had crossed the 67,000 mark, indicating a sustained positive trend in the market. See Weekly Price Chart tradingview.com/x/F5qBMfld

Court ruling allows drug makers to set their own prices Most of the Pharma Sector stocks were at upper limit today as PSX continued in bullish momentum and cross 68k level. The Lahore High Court has lifted a stay order on deregulating drug prices, giving pharmaceutical companies more control over pricing. This is a positive development for the industry, which has been struggling with low profitability due to high inflation and currency devaluation. Previously, companies could only raise prices for non-essential drugs by a set amount each year. Now, they will be able to adjust prices based on their costs. This is expected to lead to improved profitability and potentially new product launches in the sector. recall that; The government had approved deregulation of non-essential drug prices in February 2024. However, a court order put a temporary hold on the decision. Under the 2018 pricing policy, drug prices were linked to inflation, but companies faced limitations on how much they could...

Pakistan Reinsurance Company Annual Results - December 2023 EPS: Rs 3.4 up 17% over last year. Rs 1/- per share cash dividend. Auditors have expressed a qualified opinion on PAKRI Annual 2023 financials.  " an amount of Rs. 2,573.89 million (2022: Rs. 2,573.89 million) is receivable from Sindh Revenue Board (SRB) which was recovered by SRB against the sales tax liability on reinsurance services. The Company has recorded this amount as an asset, however the Company could not substantiate any control over the underlying asset..." See the link below for details. https://dps.psx.com.pk/download/document/228504.pdf See the Profit and Loss for the Year Ended Dec-2023 In the last month, the market price almost doubled. It hit the upper limit several times and rose from Rs 8.1 to Rs 15.94. Now trading at around Rs 14.25. See the price chart;

Pakistan's trade deficit contracted by 25% to $17 billion in the July-March period of FY24. The decline is due to a notable decrease in imports and a rise in exports, as per data from the Pakistan Bureau of Statistics. Beyond the headline the news is that in March this year the deficit has increased. This improvement was significant compared to the same period in the previous year, where the deficit stood at $22.69 billion. Exports increased by 8.93% to $22.914 billion, while imports declined by 8.65% to $39.944 billion during this period. However, in March 2024, the trade deficit surged by 56.3% to $2.171 billion, driven by a considerable increase in imports compared to exports. Monthly, exports in March 2024 grew by 8%, reaching $2.5 billion, while imports soared by 26% to $4.72 billion, causing the trade deficit to expand. Comparing to the preceding month, exports decreased by 1.08%, while imports saw a marginal increase of 9.25%.  https://tradingeconomics.com/pakistan/balance-o...

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