Profitability of Pakistan's benchmark stocks index declines 16% in 2024's third quarter
The oil and gas sector experienced a 20% decline in profitability during July to September

Pakistan Stock Exchange profitability declines to PKR 400 billion in third quarter
AFP
The Pakistan Stock Exchange's benchmark KSE-100 index reported a 16% decline in profitability to PKR 400 billion in the third quarter of 2024 compared to the same period last year, according to brokerage house Arif Habib Limited Research.
This downturn was primarily driven by declining earnings in key sectors, including oil and gas exploration, chemicals, oil and gas marketing companies (OGMCs), food, textile composite, refinery, and glass.
The oil and gas exploration sector witnessed a 20% decline in profitability to PKR 86 million, attributed to falling oil prices, appreciation of the Pakistani rupee against the US dollar, and reduced oil and gas production.
Other sectors experiencing notable declines include chemicals (31% yearly decline to PKR 8 billion), OGMCs (81% yearly decline to PKR 6 billion), and textile composite (85% yearly decline).
Conversely, fertilizer companies saw a 10% increase in profitability compared to July-September last year, driven by a 32% surge in urea prices and a 9% jump in DAP prices. Pharmaceuticals experienced a remarkable four-fold increase in profitability to PKR 5 billion, driven by increased medicine prices.
Commercial banks, however, posted a modest decline in profitability, recording PKR 157 billion, largely due to decreased interest rates.
Nine-month review
For the nine-month period ending in September this year, the KSE-100 index reported a 7% decline in profitability compared to the same period last year. Commercial banks, however, posted a 7% growth to PKR 438 billion in the nine months, driven by higher non-funded income.
Fertilizer companies saw a 55% increase in earnings to PKR 114 billion, while cement companies reported a 22% growth to PKR 86 billion.
Pharmaceuticals experienced an eight-fold increase in profitability to PKR 13 billion. In contrast, sectors such as oil and gas exploration (18% decline), chemicals (35% decline), OGMCs (57% decline), and textile composite (70% decline) continued to struggle.
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