The capital market experienced a rebound on Thursday, breaking a sequence of three -day losses while investors took advantage of the attractive assessments following a deep correction.
The KSE-100 index of the Pakistan Stock Exchange (PSX) climbed 1,051.88 points, or 0.94%, reaching an intraday summit of 112,539.24. The index affected a minimum of 111,805.66, marking a gain of 318.3 points, or 0.29%, compared to the closing of the previous session.
Ahfaz Mustafa, CEO of Ismail Iqbal Securities, commented on the recovery, saying: “The market, after a deep correction, sustainability is still to be seen, but the boring activity is due to investors awaiting key results during the next days.
Despite the rebound, concerns remain as to whether the market can keep its momentum upwards, investors closely monitoring companies and macroeconomic indicators.
Fauji Fertilizer Company (FFC) announced its financial results from the fourth quarter 2024, displaying an unfosterous quarterly benefit of 14 billion rupees (BPA: RS9.94), an increase of 90% in annual shift (Yoy). However, Topline Securities analysts noted that the results were lower than industry expectations.
The company declared a quarterly RS21 dividend in action by action, bearing the total dividend in cash for 2024 to Rs34.86 per share, with a payment ratio of 76.6%.
For the full year 2024, FFC recorded profits of 64.7 billion rupees (BPA: 45.49 rupees), marking an increase of 118% in annual sliding compared to RS29.6 billion (BPA: RS20.85 ) in 2023. However, the profits saw a 42% a decrease in quarters (QOQ), largely due to a loss of depreciation of 4 billion rupees on a subsidiary and a 46% drop in other income due to the drop in interest rates.
In addition, dividend income of 2.5 billion rupees expected from the FFBL Power Company did not materialize during the quarter, which increased the disappointment of investors.
On Monday, Pakistan Oilfields Limited (POL) declared a profit after tax of 10,142 million rupees (BPA: RS35.73) for H1FY25, representing a drop of 42% in annual shift. The drop was mainly allocated to higher exploration expenses linked to a dry well recorded during the period.
On a quarterly basis, the company’s net profit for Q2FY25 was RS7.573 million (BPA: RS26.68), down 4% in annual shift. POL announced an interim RS25 interim cash dividend by action for Q2FY25, in accordance with its payment during the same period last year.
Investors closely monitor macroeconomic indicators, including interest rate trends, inflationary pressures and IMF’s current commitments. Market analysts expect cautious exchanges in future sessions as more business results are published.
The KSE-100 index fell for the third consecutive session on Wednesday in the midst of the sales pressure linked to the overturning activity of the term contract. The reference index closed at 111,487.36, marking a loss of 543 points (-0.48%) compared to the 112,030.36 of the previous session.