Latest news with #DGKhanCement
Express Tribune
14-05-2025
- Business
- Express Tribune
Three cement firms join MSCI frontier index
Listen to article Morgan Stanley Capital International (MSCI) has included three Pakistani companies in its Frontier Market (FM) Index and four more in its FM Small Cap Index as part of the May 2025 index review. MSCI, a prominent global provider of investment decision support tools, announced the results of its May 2025 semi-annual index review, bringing major changes for Pakistan's listed companies in both the MSCI Frontier Markets Standard and Small Cap indices. The changes, effective after the close of trading on May 30, 2025, highlight increased representation of Pakistan in the global investment landscape, particularly in the cement sector. According to Arif Habib Limited (AHL), Pakistan's weight in the MSCI FM Index is now estimated at around 6.1%, reflecting growing investor interest and improving market performance. As per the review, three cement companies - Fauji Cement, Maple Leaf Cement and DG Khan Cement - have been added to the MSCI FM Standard Pakistan Index. With no deletions reported, the total number of Pakistani constituents in the standard index now rises to 26. This includes major blue-chip names such as UBL, Lucky Cement, OGDC, Engro, MCB Bank, HBL, FFC and now the three cement firms. Topline Securities, in its research note, estimated that the combined weight of the three added stocks was 26 basis points (bps) in the FM index. Given that global funds tracking the MSCI's Frontier Index amount to around $2-3 billion, Pakistan could attract an estimated $5-8 million in passive inflows through these additions alone. Interestingly, DG Khan Cement's promotion comes at the cost of its removal from the MSCI Small Cap Index, highlighting its upgraded market status. Meanwhile, the small-cap index saw the addition of four companies – Archroma Pakistan, At-Tahur Limited, Engro Polymer & Chemicals and Pakistan Reinsurance Company. On the flip side, AGP Limited and Agritech Limited have been deleted from the MSCI Small Cap Index. The MSCI Small Cap Index now contains 410 constituents globally, with 67 stocks from Pakistan, making up roughly 16% of the total index and holding a 10.7% weight. Topline noted that companies like Interloop, Searle and Abbott Laboratories were retained in the index despite not meeting the minimum free-float threshold ($78 million in the latest review), citing the MSCI's buffer rule as the likely reason. This rule allows companies slightly below the threshold to remain in the index to minimise excessive churn. The inclusion criteria for this review were stricter compared to the previous one in February 2025, with the minimum free-float market cap raised to $78 million from $72 million, and the total market cap requirement up to $155 million from $145 million. Maaz Azam, Head of Research at Optimus Capital, told The Express Tribune that while the latest MSCI index review brings positive news, the true success for Pakistan will lie in re-entering the emerging markets (EM) category. The MSCI index changes are widely watched by institutional investors and passive fund managers around the world. The increase in Pakistan's representation may not only lead to short-term capital inflows but also signal growing confidence in the country's economic and market fundamentals.
Express Tribune
20-02-2025
- Business
- Express Tribune
Buying spree continues as PSX gains 397 points
Listen to article Pakistan Stock Exchange (PSX) on Thursday continued its buying spree as investor confidence grew on the back of robust corporate earnings, which helped KSE-100 index notch up gains of nearly 400 points. The bourse remained in the green for most of the day, reaching its intra-day high of 114,202, reflecting strong gains compared to the prior session. Strong performance by key sectors such as cement and banking propelled the index higher. However, the current account deficit of $420 million for January, coupled with the increase in government bond yields, caused jitters in the market. As a result, selling pressure in the second half wiped off most of the day's gains. Among major economic news, the finance minister stated, "We need to bring other sectors including agriculture, real estate, retail and wholesale into the tax net." According to Ahsan Mehanti of Arif Habib Corp, stocks closed higher, driven by strong earnings and upbeat global equities. However, intra-day pressure emerged due to jittery Asian stocks, current account deficit of $420 million for January and surging government bond yields. "Speculation ahead of IMF review talks next month, the World Bank's $40 billion investment pledge and rising global crude oil prices were the catalysts for the bullish close at the PSX," he added. At the end of trading, the benchmark KSE-100 index registered an impressive rise of 396.72 points, or 0.35%, and settled at 113,739.16. Topline Securities wrote in its review that the KSE-100 index showed a positive trend, bolstered by strong results. It reached the peak of 114,202 and ended at 113,739, gaining 397 points, or 0.35%. The uptick was mainly driven by Cherat Cement, Fauji Cement, Pioneer Cement, DG Khan Cement and MCB Bank, which together accounted for 353 points in the index gains, it said. Arif Habib Limited (AHL) remarked that another "114k handle" was touched, driven by cement stocks, which pushed KSE-100 up by 1.5% week-on-week while heading into the last session of the week. A total of 54 shares rose while 42 fell. Cherat Cement (+9.96%), Fauji Cement (+7.05%) and DG Khan Cement (+8.11%) were the biggest contributors to the index gains. On the other side, Abbott Laboratories (-10%), Hub Power (-1.43%) and Bank AL Habib (-1.27%) were the biggest drags, it said. Faysal Bank (+8.12%) announced CY24 earnings per share of Rs15.7, up 18% year-on-year and dividend per share of Rs7. Earnings were slightly below expectations while the payout exceeded them. The increase in earnings was primarily driven by the growth in total income. According to AHL, the near-term index support is at last week's high of 113.5k with the target at 116k. KTrade Securities observed that market momentum shifted gears as the cement sector had its best day of the year, with many stocks posting massive intra-day gains. The advance was primarily led by Cherat Cement, Fauji Cement, Pioneer Cement and DG Khan Cement, which were the top contributors. It advised investors to keep a close eye on the ongoing result season, which may provide cues for future market direction. Overall trading volumes increased to 787.4 million shares compared with Wednesday's tally of 667.7 million. The value of shares traded during the day was Rs33.1 billion. Shares of 453 companies were traded. Of these, 223 stocks closed higher, 176 fell and 54 remained unchanged. Pakistan International Bulk Terminal led the volumes with trading in 91.5 million shares, rising Rs0.58 to close at Rs8.69. It was followed by Fauji Cement with 73.7 million shares, gaining Rs2.86 to close at Rs43.41 and K-Electric with 58.97 million shares, falling Rs0.17 to close at Rs4.71. During the day, foreign investors sold shares worth Rs517.7 million, the NCCPL reported.
Express Tribune
28-01-2025
- Business
- Express Tribune
Cement prices fall in Pakistan
Listen to article Cement prices in Pakistan have dropped to Rs1,390 per bag for top brands, including Bestway Cement, Maple Leaf Cement, and DG Khan Cement, bringing some relief to those planning construction projects. Other brands are offering cement at Rs1,400 per bag. The decrease reflects changing market demand and improved import conditions within the construction sector. Steel availability is also contributing to the fluctuations. While the price of cement currently ranges from Rs13,850 to Rs14,05 PKR per 10 kg bag, individuals can avail a 30% discount by registering through the Ehsaas Program's 8171 portal. On the other hand, Pakistan's cement exports saw significant growth during the first half of the fiscal year 2024-25. Exports increased by 23.21% to $167.47 million, compared to $135.93 million during the same period last year, according to the Pakistan Bureau of Statistics (PBS). In terms of volume, cement exports rose by 33.82% year-on-year, reaching 4.69 million metric tons during July-December 2024-25, up from 3.50 million metric tons in the same period the previous year. December 2024 showed particularly strong performance, with cement exports rising 45.47% year-on-year to $31.89 million. On a month-on-month basis, exports in December also grew by 3.04%, reaching $31.90 million compared to November's $30.96 million.
