PakStox Outlook

In the latest quarter, (Q2 Jun 2024), EFERT earned a net income of Rs. 4.6 per share, and declared a cash dividend of Rs. 3 per share. Gross profit, decreased by 69.5% over Q1 (Mar 2024)

FFC reported a net income of Rs. 12.2 per share and declared a cash dividend of Rs. 10 per share for the 2nd quarter ending Jun 2024.

Brent crude prices plummeted to their lowest point since early June, settling around $78.8 a barrel. The decline was fueled by growing fears over oil demand in China, the world's largest oil consumer.

Fitch Ratings has upgraded Pakistan's Long-Term Foreign-Currency Issuer Default Rating (IDR) to 'CCC+' from 'CCC'. Pakistan's upgrade reflects improved certainty over external funding, thanks to a new USD 7 billion Extended Fund Facility (EFF) agreement with the IMF and strong performance on a previous IMF arrangement. The IMF agreement, reached on 12 July, requires Pakistan to secure additional funding from Saudi Arabia, the UAE, and China before IMF Board approval, expected by end-August. The new EFF aims to address structural weaknesses in the tax system, energy sector, and state-owned enterprises, with significant increases in tax revenues planned. Pakistan successfully completed a nine-month Stand-by Arrangement with the IMF, implementing significant fiscal and economic measures, including raising taxes and prices. The current account deficit is expected to remain contained due to tight financing conditions, subdued demand, and lower commodity prices. Pakis...

The State Bank of Pakistan (SBP) has further eased monetary policy, reducing its policy rate by 100 basis points to 19.5% in its meeting today. This marks the second consecutive rate cut after maintaining a steep rate of 22% for a year. The decision comes amid a persistent decline in the Kibor below the 20% mark for the past month. The SBP had previously lowered the policy rate by 150 basis points on June 10, 2024. This move is expected to stimulate economic activity by reducing borrowing costs for businesses and individuals. However, the central bank will continue to closely monitor inflation to ensure it remains within the target range. https://www.sbp.org.pk/m_policy/2024/MPS-Jul-2024-Eng.pdf Key Points of Monetary Policy Statement: Inflation: Inflation is slightly better than anticipated in June 2024, and the impact of the FY25 budgetary measures is in line with expectations. External Account: The external account has improved, with the current account deficit narrowing sharply i...

 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.