June 10, 2020: The US Federal Reserve has voted to keep its benchmark rate near zero in its meeting on Wednesday.
In addition the Fed said it will continue to buy bonds including treasuries and mortgage back securities.
Furthermore, the Fed expects the US GDP to fall by around 6.5% in 2020 before rebounding in 2021.
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October 27, 2020 (MLN): The stock market remained bearish throughout the day today as it surrendered to the profit-taking activity owing to rollover week that dragged the KSE-100 index down by 468 points (1.21 per cent) to close at 41,381 points.
As per Aba Ali Habib Securities, the investors preferred to book profit on attractive levels despite of impressive corporate results, as crucial futures rollover effect kicks-in. Moreover, long weekend ahead also influenced investors’ trading strategy. Moreover, selling pressure in international markets further hampered sentiments.
Besides, amid corporate earnings season, investors also reacted to earnings announcement by Mughal, FFBL, GATM, UNITY, PSO, DAWH, NBP and PSMC , wherein all the companies except for PSMC reported increase in profits.
The Index traded in a range of 600.52 points or 1.43 percent of previous close, showing an intraday high of 41,927.68 and a low of 41,327.16.
Of the 94 traded companies in the KSE100 Index 16 closed up 78 closed down, while 0 remained unchanged. Total volume traded for the index was 305.46 million shares.
Sector wise, the index was let down by Commercial Banks with 139 points, Cement with 90 points, Oil & Gas Exploration Companies with 63 points, Oil & Gas Marketing Companies with 29 points and Fertilizer with 26 points.
The most points taken off the index was by HBL which stripped the index of 60 points followed by BAHL with 46 points, PSO with 33 points, TRG with 28 points and OGDC with 22 points.
Sectors propping up the index were Power Generation & Distribution with 19 points, Vanaspati & Allied Industries with 12 points and Transport with 3 points.
The most points added to the index was by HUBC which contributed 28 points followed by MCB with 15 points, UNITY with 12 points, SEARL with 11 points and FFBL with 7 points.
All Share Volume decreased by 6.11 Million to 481.05 Million Shares. Market Cap decreased by Rs.85.59 Billion.
Total companies traded were 407 compared to 430 from the previous session. Of the scrips traded 101 closed up, 295 closed down while 11 remained unchanged.
Total trades decreased by 156 to 160,629.
Value Traded decreased by 3.08 Billion to Rs.18.44 Billion
| Company | Volume |
|---|---|
| Unity Foods | 77,190,500 |
| Power Cement | 33,042,000 |
| Fauji Fertilizer Bin Qasim | 31,335,500 |
| Pakistan International Bulk Terminal | 26,894,000 |
| Maple Leaf Cement Factory | 25,892,638 |
| Fauji Cement Company | 22,532,000 |
| Fauji Foods | 15,825,000 |
| Pakistan Refinery | 14,677,000 |
| Pak Elektron | 13,265,000 |
| Hascol Petroleum | 12,844,069 |
| Sector | Volume |
|---|---|
| Cement | 94,576,530 |
| Vanaspati & Allied Industries | 77,199,400 |
| Technology & Communication | 43,989,100 |
| Fertilizer | 38,146,754 |
| Commercial Banks | 27,694,694 |
| Transport | 27,075,400 |
| Oil & Gas Marketing Companies | 25,504,299 |
| Food & Personal Care Products | 25,120,500 |
| Refinery | 18,628,400 |
| Power Generation & Distribution | 16,676,101 |
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October 27, 2020 (MLN): Unilever Pakistan Foods Limited (UPFL) has posted its profit after tax of Rs 2.49 billion (EPS: Rs 391.53) for the nine-months ended September 30, 2020, showing a robust growth of 61% YoY against the net profits of Rs 1.54 billion (EPS: Rs 243.04) of the corresponding period last year.
Alongside financial results, the Board of Directors of the company recommended a third interim cash dividend of Rs 120.52 i.e. (1205.2%) per ordinary share of Rs 10 each (nine months ended September 30, 2019 Rs. 93.00 i.e. 930% per ordinary share of Rs. 10/- each). This will be payable to the Members on the number of ordinary shares held by them at the close of business on November 10th , 2020.
As per the financial statement issued by the company, sales grew by 18.7% on the back of strong brand equity, wider reach and effective spending on advertisement and promotion matched by timely pricing. Gross Margin increased by 1.99% to 42.5% due to better cost absorption and savings initiatives.
Meanwhile, the company witnessed a drop in finance cost by 82% YoY to Rs 18 million along with the decrease in tax expenses by 22% YoY which contributed to the financial performance of the company.
Financial Results for the Nine Months Ended September 30th, 2020 ('000 Rupees) | |||
|---|---|---|---|
| Sep-20 | Sep-19 | % Change |
Sales | 11,340,691 | 9,555,297 | 18.68% |
Cost of Sales | (6,525,151) | (5,687,989) | 14.72% |
Gross profit | 4,815,540 | 3,867,308 | 24.52% |
Distribution, admin & other operating expenses | (2,243,569) | (2,228,379) | 0.68% |
Other incomes | 158,744 | 295,101 | -46.21% |
Finance cost | (18,691) | (106,712) | -82.48% |
Profit before taxation | 2,712,024 | 1,827,318 | 48.42% |
Taxation | (217,982) | (279,180) | -21.92% |
Profit after tax | 2,494,042 | 1,548,138 | 61.10% |
EPS - basic and diluted (Rupees) | 391.53 | 243.04 | 61.10% |
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October 27, 2020 (MLN): MCB Bank Limited has reported a 45% growth in its earnings for the nine months ended September 30, 2020, from Rs. 16.1 billion (EPS: 13.63) to Rs. 23.5 billion (EPS: 19.75).
The Bank did not announce any dividend for the third quarter. However, the first interim cash dividend has already been paid at Rs. 5 per share i.e. 50% for the quarter ended March 31, 2020.
The improvement in earnings resulted from a 28% increase in net interest income, as well as a 21% increase in non-interest income. The growth in the latter transpired on the back of the presence of Gains on securities, which amounted to Rs. 2.8 billion.
On the other hand, the total expenses changed by only 1%, despite there being an increase in workers’ welfare fund and other charges by 39% and 51%, respectively.
While the above points contributed positively to the Bank’s profits, the increase in provisioning cost by 1.85x came as a huge setback. Moreover, the income tax paid during the period surged by 41%, thereby further restricting the increase in earnings.
Consolidated Financial Results for nine months ended September 30, 2020 (Rupees'000) | |||
|---|---|---|---|
Sep-20 | Sep-19 | % Change | |
Mark-up / return / interest earned | 114,516,948 | 105,533,314 | 9% |
Mark-up / return / interest expensed | (55,717,040) | (59,508,698) | -6% |
Net mark-up / interest income | 58,799,908 | 46,024,616 | 28% |
NON-MARK-UP / INTEREST INCOME | |||
Fee and commission income | 8,791,768 | 9,048,543 | -3% |
Dividend income | 629,210 | 828,495 | -24% |
Foreign exchange income | 2,100,027 | 2,214,113 | -5% |
Income / (loss) from derivatives | (3,604) | 3,045 | |
Gain / (loss) on securities - net | 2,877,447 | (186,879) | |
Other income | 168,490 | 115,393 | 46% |
Total non-markup / interest income | 14,563,338 | 12,022,710 | 21% |
Total income | 73,363,246 | 58,047,326 | 26% |
NON-MARK-UP / INTEREST EXPENSES | |||
Operating expenses | (28,232,321) | (28,385,235) | -1% |
Workers welfare fund | (767,073) | (551,441) | 39% |
Other charges | (259,326) | (171,882) | 51% |
Total non-markup / interest expenses | (29,258,720) | (29,108,558) | 1% |
Share of profit of associates | 518,852 | 374,289 | 39% |
Profit before provisions | 44,623,378 | 29,313,057 | 52% |
Provisions and write offs - net | (5,189,574) | (1,823,093) | 185% |
Extraordinary / unusual items | |||
PROFIT BEFORE TAXATION | 39,433,804 | 27,489,964 | 43% |
Taxation | (15,921,924) | (11,327,158) | 41% |
PROFIT AFTER TAXATION | 23,511,880 | 16,162,806 | 45% |
Earnings per share | 19.75 | 13.63 | 45% |
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October 27, 2020 (MLN): Gold inched lowered on Tuesday in international market as uncertainty over US stimulus package and second wave of coronavirus dented investors’ sentiments. Gold prices moved down by $1 and traded at $1,903 per ounce, while silver was pegged at $24.37 an ounce.
On the domestic front, the price of 24 karat gold decreased by Rs750 to Rs114,500 in the domestic bullion market. The precious yellow metal of 24-Karat had closed at Rs115,250 per tola on the last day.
According to the data released by the All Sindh Saraf Jewellers Association, the price of 10-gram gold also dropped by Rs643 to Rs98,165 against the price of Rs98,808 reported on Monday.
On the other hand, the price of silver tola and 10-gram silver remained unchanged at Rs1,230 and Rs1,063.10 respectively, the association reported.
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