LAHORE - Pakistan equities continue to extend losses on Tuesday as depleting foreign reserves and rising inflationary pressure kept investors skeptical. Inclusion of corporate cost pushing factors in agenda of the Economic Coordination Committee’s meeting like hike in electricity tariff further shrugged off investor’s sentiments.

Small cap stocks like DOL and SPL closed at their upper limits as the market is expecting better margins amid rise in hydrogen per oxide (H2O2) price. Both stocks cumulatively generated volumes of 6m shares (36 percent of the total chemical sector volume).

Chemical and banking sectors grabbed investors’ attention trading ~32.8mn shares, while banks solely dragged the index down by 126pts. Select negative stocks from banks were BAFL (-1.9 percent), HBL (-1.8 percent), UBL (-1.2 percent) and BAHL (-1.2 percent).

Market participants turned their interest towards large cap stocks as witnessed by higher traded value by 53 percent to $42.7m. However, volumes remained flat at 106.5mn shares.

Nishat Chunian (NCL) posted its 4QFY18 result with EPS of Rs6.44 up 68 percent YoY. Better earnings are a result of 1) increase in sales by 19 percent YoY, 2) gross margins maintained at 19 percent, 3) jump in other income by 6.90x times YoY, 4) lower administrative expenses by 22 percent YoY and 5) decreased in other expenses by 17 percent YoY. NCL announced a cash dividend of Rs4/share in the out-going quarter.