PakStox Outlook

 Fauji Fertilizer Bin Qasim 2ndQ Jun 2024 - Financial Results FFBL delivered impressive financial performance in Q2 2024, with net income per share surging to Rs. 4.8. This represents a substantial increase of 45.2% compared to the previous quarter. The revenue also climbed 8.2% sequentially and 42.8% year-on-year, driven by a robust 29.1% quarter-on-quarter and 149.3% year-on-year expansion in gross profit. This translated to an improved gross profit margin of 23%, surpassing the four-quarter average of 19%. While financial charges increased by 8.1% quarter-on-quarter, they declined significantly by 61.2% year-on-year. Notably, the effective tax rate for the quarter was 40%, lower than the four-quarter average of 48%. The FFBL holds a significant 21.57% stake in Askari Bank (PSX:AKBL) and a controlling 63.71% stake in Fauji Foods (PSX:FFL). There is possibility of merger of FFBL and FFC. Download FFBL Announcement Notes with the Earnings Release. FINANCIAL RESULTS - OVERVIEW a. Ec...

The KSE100 Index lost 1,579 points today and dropped 1.97% to close at 78,539.  The Pakistan Stock Exchange (PSX) continued its downward trend today, following a significant loss of 1,722 points, or 2.1%, on the previous working day, triggered by political remarks and Fitch's comments on potential interim changes. Despite this, there was higher-than-usual net buying by foreign corporates, amounting to $2.37 million. Overseas Pakistanis were also more active than usual, with net buying of $1.421 million. Last Friday, the sell-off was led by insurance companies, which made net sales of close to $10 million, while local mutual funds were net buyers. Today, the roles reversed: local mutual funds made net sales of $3.3 million, while insurance companies made net purchases of $3.5 million. It will be interesting to see how they act for the rest of the week, given that insurance companies and local mutual funds operate under different dynamics.

Brent crude futures fell 2.9% to settle at $82.63 on Friday, and marked the second consecutive weekly loss, down 2.8%. A stronger dollar and concerns about China's economic outlook applied downward pressure on prices, countering the effects of tighter supply. The dollar's value increased after unexpectedly strong U.S. labor market and manufacturing data earlier in the week, reducing demand for dollar-denominated oil from buyers using other currencies. Additionally, recent data indicated that China's economy grew by a slower-than-expected 4.7% in Q2, intensifying worries about oil demand from the world's largest importer.

The KSE100 Index made a significant decline of 1,722 points (-2.1%) and closed at 80,118. Some political comments and Fitch's remarks on the possibility of an interim change sparked the decline. Even as the market declined, there was a good amount of net buying by foreign corporates, around $1.4 million. Strangely, today overseas investors made a massive net buying of over $3.7 million. My sense is that this sudden burst of activity by overseas Pakistanis is on account of local owners routing their acquisitions through foreign accounts. Also noteworthy is the net buying by local mutual funds, amounting to $2.2 million. The decline in the market is probably due to massive net sales by insurance companies, who sold close to $10 million worth today. DG Khan Cement to establish a subsidiary in the US to be named DG Cement US LLC. Read More PTC announced second quarter results for the period ending 30 Jun 2024. Earning per share came at Rs 0.14 compared to Rs. 0.3 same period last yea...

On IMF deal the KSE100 Index rises 1251 points closing at  81,155 up 1.52% Good amount of net buying by Foreign Corporates of around $3 million. Local mutual funds were also net buyers of close to $1 million bucking their recent trend. The sharp upward trend may put a stop at redemption pressure on the local funds. The recent persistent trend of higher inflation and higher oil prices is dampening hopes of further rate cuts. Otherwise, the absence of selling pressure at the Pakistan Stock Exchange (PSX) was enough to sustain the bullish trend.

Pakistan: IMF Reaches Staff-Level Agreement The Pakistani authorities and the IMF have reached a staff-level agreement on a 37-month Extended Fund Arrangement (EFF) worth approximately US$7 billion, pending approval by the IMF's Executive Board and confirmation of necessary financing from Pakistan’s development and bilateral partners. (12 July 2024) The program aims to build on last year's macroeconomic stability by strengthening public finances, reducing inflation, rebuilding external buffers, and removing economic distortions to encourage private sector growth. Key policy goals include: Sustainable Public Finances: Gradual fiscal consolidation through tax reforms and increased resources for development and social spending. FY25 budget aims for a 1% GDP primary surplus, supported by fairer taxation and expanded social protection. Federal-Provincial Fiscal Balance: A National Fiscal Pact reallocates spending responsibilities, enhancing provincial tax efforts, including harmoniz...

12 Jul 2024: The KSE100 again failed to maintain the 80k level, which it had gained by reaching an intraday high of 83,322. It closed the day by losing 48 points, ending at 79,944. The key event today was the market's reaction to the Supreme Court's decision to restore some seats to the PTI in a judgment announced today. Upon the announcement, which was seen as weakening the incumbent government, the market tanked over 1,200 points. However, the recovery was quick, establishing the bullish trend in the market. Today again local mutual funds were net sellers of over $1.4 million. There was no significant activity by the Foreign investors today.  This week, the market remained under selling pressure primarily from mutual funds and lost approximately 269 points for the week. Major Gainers/Losers Today: Indus Motor Com (PSX: INDU) is temporarily halting production at its plant from July 15th to 22nd, 2024 due to a shortage of vehicle parts and low inventory caused by supply chain c...