JS Securities Limited – JS Market Wrap (19-02-2021)

Karachi, February 19, 2021 (PPI-OT): View from the desk

The KSE100 started the day strong, rising to touch a high of +235 points from where the index slid to a low of -6 points as a result of profit-taking. The market closed the volatile session at 46,227 level with the benchmark index having inched up 85 points. BYCO (9.6%), WTL (6.0%), HUMNL (8.6%), BOP (4.8%), TRG (7.1%) and TELE (-0.2%) were major contributors to total traded volume which was recorded at 695mn shares. In the Cement sector, DGKC (0.9%) reported a consolidated EPS of Rs2.31 for 1HFY21 while FCCL (-3.0%) reported an EPS of Rs1.16.

Neither company announced a cash payout. The latter also announced through a notice that the company’s board had approved the setting up of a Greenfield Cement Manufacturing Plant of 2.05mn tons per annum. In the Financials, BOP (4.8%) reported a consolidated EPS of Rs2.58 for CY20 along with a cash dividend of Rs1/share. Moving forward, the market is expected to remain volatile and any dips while the market consolidates should be seen as an opportunity to accumulate stocks.

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