KARACHI: Profitability of the stocks that constitute the KSE-100 Index recorded a growth of 8 per cent year-on-year for 1QCY18, driven mainly by fertilizer, up 154pc and oil and gas exploration companies 31pc. “Tobacco, higher by 234pc and insurance 85.5pc were also prominent contributors to the earnings surge,” stated a report prepared by Arif Habib Ltd.

The analysis is based on 95 companies that have announced their financial results, which represent almost 97.7pc of the market capitalisation of the KSE-100 index companies. The report says that after adjusting for one-timers, including pension cost for banks and capital gains on sale of Hub Power’s shares by Dawood Hercules, the growth in profitability reduces to 5pc.

During 1QCY18, the index rose by 5,089 points, increasing by 12.6pc due mainly to contribution of 1,883 points by commercial banking, 777 points by cements and 719 points by fertiliser sectors. On the flip side, tobacco companies scrapped 69 points from the index.

Published in Dawn, May 9th, 2018