LAHORE   -  The local bourse ended the week down by 0.9 percent on basis to close at 42,447 level. Emerging markets around the globe suffered from the fallout between the US and Turkey, on the latter's refusal to release a US national.

This prompted the US to impose heavy tariffs on Turkish imports, evoking a similar response from its counterpart. Daily average volumes plunged by 23 percent to 161m shares, while value traded also fell by 18 percent, as investors took a cautious approach ahead of voting process in National and Provincial assemblies for Prime Minister and Chief Ministers, respectively.  The key highlight of the week came after trading ended for the week, when PTI Chairman Imran Khan has been elected Pakistan's 22nd Prime Minister ahead of PML-N's Shahbaz Sharif by a comfortable margin.

Moreover, crude oil edged down 4 percent WoW on oversupply concerns, with OPEC forecasting lower demand, leading Saudi Arabia to announce production cuts. On the foreigners front, net selling of US$6.3mn was witnessed, which was nevertheless lower than $37mn witnessed over the previous week. Among major sectors, Cements underperformed the KSE-100 index by 0.8 percent WoW, which was due likely due to profit taking post recent rally in the sector. Major losers during the week included (1) PAEL (down 10 percent WoW) on dismal earnings' announcement, and (2) SSGC (down 7 percent WoW), on news that it lost a case in international arbitration for failing to provide gas to Habibullah Coastal Power Company.

Experts said that investors Friday’s session cheered the smooth transition of political junctures during the week with PTI candidates successfully securing the positions of Speaker/ Deputy Speaker of National Assembly (Lower House) along with Pakistan embracing PTI’s Cricketer-Turned Politician Imran Khan as its next Prime Minister.

Despite political clarity since the National Poll (25 Jul 2018), investors remained skeptical amid not-so-excited corporate results and concerns over the Country’s Balance of Payment (BoP) situation. Sentiments were further dented as Turkey’s financial woes rattled global financial markets. Resultantly, market shed 396pts on week-on-week basis.

Stock wise, NETSOL remained among top performers during the week, gaining 10 percent amid its newly announced project of US$30mn that would be recognized within a span of 5 years.

During the week, foreigners sold US$6.5mn worth of shares vs. net selling of US$38.6mn during the same period last week. On local front, individual investors and insurance companies were net buyers amounting to $5.8mn, $5.5mn, respectively while mutual funds were net sellers of $6.2mn. During this period, Tri-Pack Films (TRIPF) announced its 2Q2018 result posting EPS of Rs2.93 down 25.4 percent YoY vs. EPS of Rs3.93 in the similar period last year. Despite increase in revenue, up by 6.8 percent YoY, the decline in earnings was a result of increased distribution cost up 11.3 percent YoY and finical charges up 41 percent YoY.

Abbot Laboratories Pakistan (ABOT) also posted its 2Q2018 result with EPS of Rs6.46 down 35 percent YoY. Decline in earnings is attributed to lower export sales down 5.5 percent, decreased margins down 4ppts to 34 percent YoY and increase in other charges up by 44.7 percent YoY. The company also announced cash a dividend of Rs10 per share.

Pakistan Cables (PCAL) announced its 4QFY18 result posting EPS of Rs2.38 down 52 percent YoY. Sales for the company increased by 47 percent YoY. However decline in margin down, 6ppts YoY to 9 percent & other income by 81 percent YoY and increase in financial charges by 118 percent YoY affected the earnings for the company. The company also announced a cash dividend of Rs.3.50 per share.

General Tyre and Rubber Company Pakistan posted its 4QFY18 result with EPS of Rs2.25, up 211 percent YoY vs. EPS of Rs0.73 in the 4QFY17. Better earnings are a result of improved margins up 6ppts YoY to 15 percent and increased sales up 33 percent YoY in the outgoing quarter. However, the company posted a full year EPS of Rs11.97 for FY18 down 19 percent YoY vs. EPS of Rs14.75 in the similar period last year. The company also announced a cash dividend of Rs6 per share and bonus of 70 percent.

Bestway Cement (BWCL) disclosed its 4QFY18 result posting EPS of Rs7.46 up 63 percent YoY vs. EPS of Rs4.57 in the similar period last year. Increase in quarterly earning is attributed to lower financial charges down 7 percent YoY and improved other income by 14 percent YoY. According to experts, country's total liquid forex reserves declined by $292mn to $16.713bn as on August 10, 2018 compared to $17.005bn on August 3, 2018.