KSE 100 INDEX plunged by 604 points to close in red at 41483 levels in the opening session of the week here Monday.
The market volume looked a bit depressed at 153 million all shares primarily on the back of volatile and unpredictable political situation prevailing in the country casting an adverse impact on growth and development of the economy.
Although the cement sector which plays an important seems depressed due declining prices and profitability of the sector yet it will continue to be the central attraction of the investors. The volume leader of the day was Dost Steel with a trade of 19 million shares to its credit, while other top performer in terms of volume were Azgard nine and SNGPL with trade volume of 15 and 9.82 million shares to their credit respectively
Meanwhile the cement sector is likely to post net profit after tax NPAT of PKR6.9 billion in 1QFY18, down by 4%YoY on the back of increase in FO and coal prices. However, cement companies’ profitability may increase by 17%QoQ on account of absence of super tax in this quarter.
However the cement retention prices in North have remained stable on QoQ basis despite the continuous decline in retail prices which have declined by 7% to PKR521/bag since Jul 20, 2017 (PKR542/bag) till now. This is accredited to an increase in retail prices by PKR17/bag in North due to the imposition of 25% higher FED in Budget FY18. On contrary, retail prices in South have remained stable resulting into lower retention prices compared to last year.