KARACHI: Earnings of the KSE-100 index depicted a downturn of 1.2% YoY during 3QFY19 ended March 31, 2019.[the_ad id=”31605″]Based on sectoral weight, this was led primarily by Cements (-7.8% YoY; 5.7% weight), Oil & Gas Marketing Companies (-65% YoY; 4.3% weight), Automobile Assemblers (-44% YoY; 3.1% weight), and Pharmaceuticals (-34% YoY; 1.9% weight). Whereas sectors that remained top performers were Commercial Banks (+2.1% YoY; 28.0% weight), Oil & Gas Exploration Companies (+35% YoY; 15.7% weight), Fertilizers (+5.7% YoY; 14.3% weight), Power Generation & Distribution (+21.5% YoY; 6.5% weight), Chemicals (-10% YoY; 2.0% weight), and Miscellaneous (-63% YoY; 1.8% weight).
In particular, profitability during 9MFY19 (July-March 2018-19) declined by 4.3% driven by profits’ attrition in heavy weight Commercial Banks (-27.2% YoY) while Oil & Gas Exploration Companies (+46% YoY) and Fertilizers (+20.1% YoY) posted profitability improvements. Sequential downturn in bottom-line of the KSE100 index arrived at 3.5% QoQ led by pressure faced by Oil & Gas Exploration Companies (-8.8% QoQ) and Fertilizers (-23% QoQ).
Sectors leading the profitability chart during 9MFY19 were Synthetic & Rayon (+147.8% YoY), Textile Weaving (+143.5% YoY), and Vanaspati & Allied Industries (+137.3% YoY). During 3QFY19, Textile Weaving (+158.8% YoY), Woolen (+139.7% YoY) and Paper & Board (+102.0% YoY) led the earnings chart of the index.
During 3QFY19, the KSE-100 index rose by 1,583 points (+4.3% QoQ) majorly owing to Banks (919 points), Oil & Gas Exploration Companies (814 points) and Fertilizers (617 points).
During 9MFY19, the KSE-100 index declined by 3,259 points (-7.8% YoY) with the bearish trend being led by Commercial Banks (-317 points), E&P Companies (-298 points), Cements (-497 points) and the Power sector (-387 points). On the other hand, Fertilizers (+632 points) and Tobacco (+193 points) contributed positively to the index.
“We have based our analysis on the 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% of the market capitalization of the benchmark bourse,” a report issued by Arif Habib Limited said.