ISLAMABAD: Atlas Honda Limited and Millat Tractors have earned record profits in 2021-22. Atlas Honda has reported 7.81 billion rupees pre-tax profit for the year 2021. The net profit of the car manufacturing company in Pakistan stood at 5.585 billion rupees after payment of over 2 billion rupees tax to the government. The value of company’s share edged up by 45 rupees and Atlas Honda Limited paid 150 percent dividend.
Hike in prices of four wheelers and increase in their demand has led to an unexpectedly high profit of the Atlas Honda Limited this time.
Meanwhile, Millat Tractors Limited has reported 6.90 billion record profit in third quarter of fiscal year 2021-22 (July 2021 to March 2022). After payment of tax, the net profit of Millat Tractors Limited ended at 4.911 billion rupees. Value of price of share of the company surged by 60.84 rupees during this period. The company, however, did not inform the Pakistan Stock Exchange whether or not it paid any dividend or profit to its shareholders despite earning a massive profit.
Interestingly, mega companies are reporting massive profits, but stock market is nose-diving these days on the pretext of economic uncertainty in the country. On Monday (May 16), Pakistan Stock Exchange crashed once again and lost over 1000 points at 10:23am amid uncertainty on the economic front as the government did not outline its economic policy and future course of action pertaining to IMF programme.
The KSE-100 benchmark index fell to 42,434 points (2.42 percent fall in market capital). The market traded 1.216 billion rupees shares at 10:23am on Monday and the number of traded shares amounted to 25.549 million. Pakistan Stock Exchange opened on a positive note with 43,486 points from 8am to 9:30am. However, after an hour and a half, market manipulators recalled the uncertainty on the economic front and bulldozed the positive sentiment, pushing down index by more than one thousand points.
Panic in the stock market seems to be a pressure tactic on the government to rush to IMF to revive the stalled programme overlooking its impact on the consumers and economy.
On Friday, the KSE-100 index gained more than 500 points, closing at 43,486 points, but today the market players thought it fit to raise the issue of uncertainty and lack of decision on the part of the government about the IMF, economic plan and future strategy about the next general elections.
Uncertainty in the stock and capital market has boosted value of dollar above 193 rupees in the inter-bank and over 194 rupees in the open market.
Rumours about delay in the government-IMF talks are encouraging the trend of dollarization in Pakistan. Market is awaiting positive news from the government about talks with IMF and disbursement of financial assistance from some friendly countries.