OUR STAFF REPORTER LAHORE - Political uncertainty during the outgoing week kept the stock market investors cautious, as they only booked profits throughout the week. The KSE 100 index remained flat, gaining only 36 points or 0.3 percent WoW. Average volumes were down 12.6 percent WoW to 75 million shares, with foreigners offloading shares worth $7.9 million. Experts said that strained Pak-US ties coupled with the hawkish attitude of the opposition parties had initially overshadowed the healthy corporate results as well as the positive sector news flow. However, attractive valuations finally lured investors on the last trading session of the week. In comparison to the regional markets, the local bourse underperformed by 4.9 percent. Furqan Ayub, an equity market expert, said that on the back of higher retention prices and marginally improving volumes, Luckys EPS came in line with expectations at Rs4.66, up 107 percent YoY in 1QFY12. Amongst banks, MCB and UBL posted earnings growth of 24 percent YoY and 36 percent YoY to Rs18.55/share and Rs8.95/share, respectively in 9M2011. NBP in contrast reported (flat earnings growth) earnings of Rs6.78/share. Much awaited (9M2011) result of FFBL was also announced during the week, where the company booked an EPS of Rs7.68, jumping massively by 145 percent YoY. In the Oil sector, PPLs bottomline surged by 27 percent YoY to Rs7.52/share in 1QFY12, while OGDCs earnings grew by 31 percent YoY to Rs5.1/share in the same period. Cement dispatches for 1QFY12 were released which stood at 7.50mn tons versus 6.91mn tons in the corresponding period last year, up 9 percent YoY. Local cement sales (5.17mn tons) depicted a growth of 12 percent YoY while exports grew marginally by 2 percent YoY (2.33m tons). Additionally, SBP also issued a circular relaxing the forced sale provision criteria for banks which is expected to have a positive impact on the sectors earnings. Samar Iqbal an Equity Dealer said that active institutional buying in FFC and ODGC helped index to gain 2.46 percent. The squaring off of October contract also helped lift the confidence of investors who aggressively bought share of fertilizer and oil sector. FFCs earnings and dividend announcement next week coupled with inflation number for the month of October will set the direction of the stock market next week. As per experts, Fauji Fertilizer Company (FFC) is expected to announce its 9MCY11 results on Monday. It is expected the company will post a net profit of Rs13,549m compared to net profit of Rs7,021m (EPS: PKR8.28) for 9MCY10. For 3QCY11, the company is expected to announce earnings of Rs5,360m (EPS: Rs6.32), recording a massive 179 percent profit growth YoY. It is also expected the company to announce an interim dividend of PKR5.5/share for 3QCY11, taking total dividend for 9MCY11 to an impressive PKR14.75/share. 71 percent YoY revenue growth in 3QCY11E would be driven by 48 percent better volumes and margin improvement by a significant 15 percent. FFCs 51 percent holding of Fauji Fertilizer Bin Qasim (FFBL) will make a before tax contribution of Rs1,069m (Rs1.26/share) to FFCs earnings for 3QCY11. Experts presently have a BUY stance on the stock, currently trading at 27 percent discount to our Dec11 Target Price of 241. Engro Corporation (ENGRO) is expected to announce its 9MCY11 results on Monday October 31, 2011. It is expected the company to post a net profit of Rs5,344 million (EPS: Rs13.79) compared to net profit of Rs4,058 million (EPS: Rs10.32) for 9MCY10. For 3QCY11, the company is expected to announce earnings of Rs2,028 million, showing 136 percent profit growth YoY. Engro Fertilizers ability to pass on the production losses for the shutdown period will help offset depreciation (1b) and financial charges (2.5b) on its income statement. With urea MRP at Rs1398/bag in 3QC11, 64 percent higher then the same period last year, It is expected Engro Fertilizer to make an EPS impact of Rs2.08 for Engro Corporation in 3QCY11. Engro Foods (EFOODS) gained market share in its key UHT milk business, reaching 44 percent compared to 39 percent as at the end of CY10. ENGRO trades at CY11E and CY12E P/E of 5.8x and 4.7x respectively. Current low prices make it a good level to accumulate the stock for long term. Pakistan State Oil (PSO) is scheduled to announce its 1QFY12 result on Monday, October 31, 2011. It is expected the company to post PAT of Rs2.0b (EPS: Rs11.69) for 1QFY12 compared to PAT of Rs810m (EPS: Rs4.72) recorded over the same period last year. 1QFY11 earnings were deeply hurt by turnover tax of 1.0 percent on net sales applicable as announced in FY11 budget which was later reversed to 0.5 percent. The current quarter would, therefore, witness a much lower tax expense. Top-line is expected to increase by 35 percent YoY primarily on the back of 49 percent YoY increase in Arab light crude oil prices over 1QFY12, however, volumetric sales for the company would remain flat on YoY basis.