KARACHI: The profitability of KSE-100 shares portrayed a healthy 7.8 percent growth during nine months i.e. January-September (9MCY18).
The growth in profitability was primarily led by Fertilizers (+90%), Oil & Gas Exploration Companies (+27%), Chemicals (+19%) and Power Generation & Distribution (+14%). Stress on the index profitability was provided by Banks (-10%), Oil & Gas Marketing Companies (-9%), Cement (-8%), and Automobile Assemblers (-11%).
Amongst low-weighted sectors, notable performances include Textile Spinning (+169%), Leasing (+89%), Insurance (+35%), Paper & Board (-27%), and Food (-16%).
Profitability in 3QCY18 (July-September) increased marginally by 0.8% YoY but declined by 4.7% QoQ.
On a YoY basis, increase in profitability was again driven by growth in E&P (+39%) and Fertilizer sectors (+53%).
While on a QoQ basis, the decline in profitability was due to lower profits in the Banking sector (-21%) and Cement sector (-47%).
Sectors leading the profitability chart during 9MCY18 are Synthetic & Rayon (+1056% YoY), Textile Spinning (+169% YoY) and Fertilizer (+90% YoY). During 3QCY18, Synthetic (+633% YoY), Textile Spinning (+317% YoY) and Technology (+284% YoY) led the index.
During 3QCY18, the KSE-100 index declined by 912 points (-2.2%) majorly owing to Food (-193 points), Automobile Assemblers (-179 points) and Oil & Gas Marketing Companies (-155 points). On the other hand, Fertilizer Companies added 107 points during the same period.
During 9MCY18, the KSE-100 index accelerated by 521 points (+1.3%) with the bull run being led by Fertilizers (+926 points), Banks (+712 points) and E&P (+366 points). On the other hand, Cement (-360 points) and Automobile Assemblers (-341 points) contributed negatively to the index.
“We have based our analysis on KSE-100 index companies. 94 companies have announced their results and have been included in this analysis while the remaining 6 companies have not yet disclosed their results. The companies which have been included in our analysis represent almost 96.8% of the market capitalization of the KSE-100 index,” report added.