August 10, 2024 (MLN): Being the epitome of high-stakes drama, Pakistan's corporate arena never fails to throw surprises. The past week, from jaw-dropping profits of MARI which rode PSX high and game-changing discoveries on the energy front to the unexpected shutdown of the Pak Suzuki plant due to delays in CKD kit approval and Unilever got fined, caught everyone off guard.
In short, the market kept traders and investors on their toes. If you missed it, here’s a recap of the week that had everyone talking!
Unilever to pay Rs60m fine for misleading ads
The Competition Commission of Pakistan (CCP) slapped Unilever Pakistan with a hefty fine of Rs60 million for airing deceptive claims through television commercials for its hygiene and cleansing products, Lifebuoy (Care and Protect) Soap and Lifebuoy Hand Wash.
Pak Suzuki’s Karachi plant stalled
Pak Suzuki Motor Co. Limited halted its Karachi plant due to delays in approving Completely Knocked Down (CKD) kits. The stuck kits racked up significant detention and demurrage charges.
Mobilink Bank unveils E-Bike loans
signalling a push towards sustainable and accessible transportation options, Mobilink Bank launched E-Bike loans in collaboration with PakZon Electric Motors.
FFBL planning to sell land
Fauji Fertilizer Bin Qasim Limited (FFBL) is planning to sell 166.387 acres of land in Pindi Bhattian to Fauji Foundation.
NETSOL expands role
NETSOL Technologies Limited expanded its influence by signing a contract with IGNITE-National Technology Fund to manage the National Incubation Center in Lahore.
Bolan Castings stopped production
Bolan Castings Limited decided to temporarily halt production from August 12 to 16, 2024, due to a sharp drop in sales and declining customer orders.
PSX extends rally on Mari
The KSE-100 Index gained notable traction, driven by Mari Petroleum’s blockbuster earnings as the company recorded a 62% YoY increase in profit to Rs25.66 bn.
Veon Ltd. to sell 20% stake in Jazz
Veon Ltd., the parent company of Jazz, revealed plans to sell up to 20% of its stake in Jazz through an IPO.
Mehmood Textile sells shares in Orient Power
Mehmood Textile Mills Limited approved the sale of 87.34 million shares in Orient Power (Pvt) Ltd. The proceeds from this sale are expected to be reinvested into the company’s business activities.
Bank AL Habib increases capital of AL Habib Exchange Company
Bank AL Habib Limited (BAHL) announced an increase in the authorized and paid-up capital of its subsidiary, AL Habib Exchange Company, from Rs1bn to Rs3bn.
Kohinoor Spinning to explore new business ventures
Kohinoor Spinning Mills Limited authorized its CEO to explore business diversification opportunities.
Apna Microfinance Bank boosts capital to support expansion
As part of its growth strategy, Apna Microfinance Bank Limited approved an increase in its authorized capital from Rs5bn to Rs7.5bn.
KAPCO not received capacity payments
Amidst media buzz on capacity payment, Kot Addu Power Company Limited (KAPCO) clarified that it has not received capacity payments since its Power Purchase Agreement (PPA) expired in October 2022. However, the company confirmed receiving overdue payments for periods before the PPA expired.
FFBL calls emergency meeting
FFBL called for an emergency board meeting to discuss non-financial matters, further stirring market interest.
Another IPO on board
BF Biosciences Limited applied for listing on the Main Board of PSX, with an IPO of 25 million shares at a floor price of Rs55 per share.
Dewan Farooque proposes loan-to-equity conversion
Dewan Farooque Motors Limited shareholders are set to vote on converting loans from Dewan Motors into equity.
PSX recomposes NBP Pakistan Growth Index
PSX conducted the Re-composition exercise of the NBP Pakistan Growth Index, adding Millat Tractors Limited and removing Bank Alfalah Limited from the index.
JS Momentum Factor Index
The JS Momentum Factor Index saw six companies added, including Ghandhara Automobiles and National Bank of Pakistan, while Faysal Bank and others were removed.
TotalEnergies to sell stake in Total PARCO
TotalEnergies signed an agreement to sell its 50% stake in Total PARCO Pakistan Limited to Gunvor Group, reflecting a strategic shift in TotalEnergies' operations in Pakistan.
PPL enhances gas production at Sui field
Playing its crucial part amidst declining gas reservoirs, PPL also executed a production enhancement initiative at the Sui Gas Field, increasing output by 19 MMSCFD.
Major gas condensate discovery at Razgir-1 Well
TAL Joint Venture, comprising OGDCL with a 30% working interest, MOL Pakistan Oil & Gas Co. B.V. (the Operator) at 10%, Pakistan Petroleum Limited (PPL) also at 30%, POL at 25%, and Government Holdings Private Limited (GHPL) with a 5% stake marked another significant gas condensate discovery at the Razgir-1 Exploratory well.
Shutdown for base plant maintenance
Engro Fertilizers Limited announced an unscheduled shutdown of its Base plant for maintenance which will last around five days.
MSCI index review announcement scheduled for Aug 12
Morgan Stanley Capital International (MSCI) is set to announce the results of its August 2024 index review on August 12.
Indus Motor’s temporary closure
Indus Motor Company Limited temporarily closed its production plant from August 6 to 8, 2024, due to low raw material inventory and supply chain challenges.
NCCPL sets deadline for brokers
National Clearing Company of Pakistan Limited (NCCPL) issued a deadline for Securities Brokers and Professional Clearing Members to submit their audited liquid capital statements by October 31, 2024.
Financial Results
Numerous companies have announced their financial results for the recent quarter, witnessing remarkable performance across various sectors.
- Lucky Cement Limited unveiled a remarkable 265% YoY increase in Q2 profits, recording Rs9.46bn in profit after tax.
- Mari Petroleum announced a final cash dividend of Rs134 per share for the year ending June 2024, along with an 800% bonus share issue.
- Meezan Bank Limited reported a 54.65% YoY surge in earnings to Rs26.89bn for Q2 2024 along with interim cash dividend of Rs7 per share.
- BAHL reported a 50.1% YoY increase in Q2 profits to Rs11.38bn, led the board to announce an interim cash dividend of Rs3.5 per share.
- MCB Bank Limited posted a 14.6% YoY growth in Q2 profits, recording Rs16.84bn.
- Crescent Steel & Allied Products Limited reported a 120.7% YoY increase in Q2 profits.
- Pakistan Tobacco Company Limited reported a 36.3% YoY increase in Q2 profits, posting Rs5.86bn.
- Gadoon Textile Mills Limited reported a 13.1% YoY increase in Q2 profits.
- Lucky Core Industries Limited rebounded in Q2 2024 with a profit of Rs3.21bn.
- Secure Logistics Group Limited reported largely unchanged profits of Rs114.06m in Q2 2024, despite an increase in gross margins.
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Posted on: 2024-08-10T21:40:24+05:00
