PakStox Outlook

For the years ending 2024 and 2023, HTL incurred operating losses. Income during these periods primarily consisted of "other income," which was substantially comprised of dividend income from its 100% owned subsidiary, Hi-Tech Blending. Furthermore, in both 2024 and 2023, HTL benefited from a tax write-back. This write-back boosted profit after tax (PAT) in 2024 and reduced the net loss in 2023. The tax write-back resulted from the company and its subsidiary, Hi-Tech Blending (Private) Limited, being taxed as a group. Lat cash dividend was paid in Year 2022.  With over 75% holding with sponsors what is the point of listing for PSX participants.

OGDC remains under state control. The Government of Pakistan holds around 75% of its shares. For the latest quarter ending Sep2024, OGDC owns a 20% stake in Mari Petroleum (PSX:MARI). It is holding 42% of Pakistan's oil reserves and 36% of its gas reserves. OGDC posted a profit of Rs. 9.5 per share and paid a cash dividend of Rs. 3 per share. In the last four quarters, OGDC earned a net income of Rs. 46.7 per share. While in the last 4 quarters, total cash distribution was Rs. 11.5 per share. PAT for the trailing twelve months decreased by 4% compared to the prior quarter. Over the past 3 months, OGDC has gained 33% compared to a gain of 34% of the KSE100 Index. Over the past 1 year, OGDC has gained 79% compared to a gain of 81% of the KSE100 Index. OGDC has made no change in its capital in the last one year. Exposure in PSX Indices: KSE100: High KSE30: High KMI30: High OGDC is trading at a market price of Rs. 222.5.Its Price Earning Ratio is 5. Its dividend yield is 5.2%. The aver...

Oil & Gas is the largest sector in the Pakistan Stock Exchange in terms of market capitalization. This sector is also heavily exposed to PSX Indices. The total market capitalization of the sector is 21% of the PSX market capitalization. See the Detailed Sheet together with Key Financials of Constituent companies.

  Click here to get better view

Last week, the Finance Minister was vocal about the government's endeavors to bring interest rates to single digits. However, such expectations contrast with the reality that no measures have been introduced to alter the public finances structure responsible for the breakdown conditions and near-disaster that kept policy rates elevated at 22% for nearly a year, seriously hampering economic activity.  The Pak Rupee-USD parity stubbornly remains unchanged, and even the voices that once predicted it would fall below 250 have now fallen silent. The black hole of the energy sector remains voracious, with no sign of either power rates coming down or a resolution to the circular debt. The recent sharp decline in policy rates is primarily the result of stepping back from the brink and reducing the associated risk premium. However, government revenues remain stagnant, and harsh taxation measures reflect panic in public finance management. This is not an environment conducive to calming econ...

What has been the main theme of fund management over the past year at PSX, as it rose by more than 80% in terms of KSE100 Index gains; Interest rates declining so go to equities? Given such extraordinary market movements—where PSX experienced extreme lows followed by absurd highs, driven largely by severe external factors—the small size of the market was overwhelmed. In such circumstances, fund managers had little choice but to go with the flow, as the massive shifts were primarily the result of extraneous forces.  But how can an "over-engineered" financial analyst, who must master all sorts of "financial combinations" and endure endless certifications and courses, do anything to outperform gains purely driven by market movements? Or is he merely a cog in the system, executing trades within a portfolio structure and preparing management reports under the old theme of "earning dividend income while rooting for capital gains"? Portfolios within a certain cla...

OGDC has risen by more than 90% this year, yet it still hasn't reached the $1 per share price at which it sold for back in 2019. Some consolation. At its current price, the trailing dividend yield is under 5%, with stagnating production. Even after doubling its price within a year, the PE is just around 5. This highlights the stark mismatch between the replacement cost of capacity and the income stream it generates in the current distorted economic environment. The upheaval we have experienced in recent years has been tremendous. Replacing or expanding the country’s industrial capacity would now cost five to six times more than it did just five years ago. Inflation and the depreciation of the currency have created significant barriers to entry, limiting production increases, thereby stifling both growth and competition. Meanwhile, existing units are struggling to recover gains both for the current year and the years lost - this limiting income from investment. This mismatch between...