Zubair Yaqoob
Karachi
Earnings of the KSE-100 index depicted a dip of 15% YoY during Jan-Mar quarter which is primarily owed to dismal earnings posted by cyclical sectors. Cement, Oil & Gas Marketing and Steel posted losses during the quarter worth Rs. 3billion, Rs. 4.1billion and Rs. 149 million, respectively. Moreover, Fertilizers, Food and Personal Care, Automobile Assemblers and Chemicals profitability declined by 58%, 16%, 31% and 46% YoY, respectively.
On the other hand, sectors that remained top performers were Commercial Banks (+26% YoY), Oil & Gas Exploration & Production (+14% YoY) and Power Generation & Distribution (+83% YoY). During 9MFY20 earnings dropped by 7% YoY amid fall in profitability of Cements (loss of Rs. 3.4billion against a profit of Rs. 30billion SPLY), Fertilizers (-24% YoY), and OMC’s (-53% YoY). Meanwhile surge in profitability was witnessed in Commercial Banks (+40% YoY), and Power (+80% YoY).
On a sequential basis, KSE-100 Index’s bottom-line witnessed a decline of 17%, which was led by Banks (-17% QoQ), Fertilizers (-62% QoQ), Chemicals (-39% QoQ) and losses posted by Cement and OMC’s. Sectors leading the profitability chart during 9MFY20 were Miscellaneous (+412% YoY), Investment Banks (+91% YoY), and Power (+80% YoY). During 3QFY20, Investment Banks (+730% YoY), Tobacco sector (+109% YoY) and Power (+83% YoY) led the earnings chart of the index.
During 3QFY20, the KSE-100 index fell by a massive 11,503 points (-28.2% QoQ) as the COVID-19 pandemic unfolded wiping off equity market sentiment. The decline was led by Commercial Banks (-3,202 points), E&P (-2,527 points), and Fertilizers (-1,295 points). During 9MFY20, the KSE-100 index declined by 4,670 points (-13.8% YoY) majorly owed to Commercial Banks (-1,611 points), E&P (-1,577 points), and OMC’s (-512 points). On the other hand, positive contributions to the index came from Fertilizers (+276 points) and Cement (+224 points).
