LAHORE - Pakistan equities succumbed to global sell-off as KSE 100-index fell by 394 points. Investors even failed to respond positively to IMF’s confirmation that Pakistan had approached it for a bailout. Further, country's status in the MSCI EM Index also raised investors’ eyebrows as in its next semi annual review of Nov 2018, it is feared that the few stocks may be removed from the Index. To note, under their current market cap requirements of MSCI global investable index, none of the existing five companies of Pakistan meet the free float requirement.

KEL was one of the volume leaders with 12m traded shares, as investors expect a decision on Shanghai Electric’s takeover bid by 25th October. Auto sector continued to fall, marking the 10th consecutive day of sector decline. Cumulatively, auto sector has contributed 227 points to the index decline in the last 10 trading sessions. Market participation remained thin, as volumes declined by 32 percent to 135m shares and value traded fell by 36 percent to $40m.

On Thursday, Pakistan Telecommunication (PTC) announced its 3Q2018 results posting EPS of Rs0.35 up 22 percent YoY. Sales for the quarter increased 11 percent YoY, and taxation was down by 50 percent YoY, while finance cost increased 47 percent YoY. TRG Pakistan Limited (TRG) released its financial results for the year end 2018; it recorded an LPS of Rs5.38 lower than last year’s LPS of Rs8.03.

This can be attributed to 36 percent YoY increase in sales. However, 22 percent YoY rise in operating expenses, and a 15 percent YoY increase in finance cost kept the bottom-line negative.