Stocks made headway on Monday with cement companies stealing the show, following news of a construction sector subsidy, which strengthened the bets on robust earnings in the cyclic and allied industries in the upcoming result season, dealers said.
Pakistan Stock Exchange’s (PSX) benchmark KSE-100 shares index gained 1.18 percent or 428.16 points to close at 36,618.57 points level, while KSE-30 hit a high of 1.32 percent or 207.34 points to end at 15,901.05 points level.
Topline Securities in a note said, “Taking cue from rise in international markets and international oil prices, market opened on a positive note making an intraday high of 531 points.
Cements and steels remained in limelight as announcement of Rs30 billion subsidy for Naya Pakistan Housing Scheme and reports that Prime Minister was scheduled to visit Diamer-Basha dam site to review project progress, led CHCC, DGKC, and MUGHAL to close at their respective upper circuits, the brokerage added.
Of 403 active scrips, 236 up, 151 retreated, and 16 remained unchanged, while volumes swelled to a massive 468.906 million shares, as compared with 292.709 million shares in the previous session.
Saad Rafi, head of equity sales at Al Habib Capital Markets, said, “Expecting higher demand of cement and steels, the benchmark index maintained the upward momentum”. “Prime Minister Imran Khan is expected to announce commencement of Basha Dam to further accelerate the pace of these groups.”
Rafi said financial results would start pouring in from next week where select buying was likely to be recorded in sectors. Tahir Abbas, director research at Arif Habib Limited, said, “Cement and steel shares led the positive column after the government announced the construction package, helping uplift economic activities along with sales of these and allied sectors”.
Over the weekend Prime Minister Imran Khan unveiled the plan to construct around 100,000 houses, which played a key role in keeping the market in the green zone for almost 12 sessions, Abbas added.
Salman Ahmad, head of institutional sales at Aba Ali Habib Securities, said, “Numerous positive developments helped the market trade in plus zone and entering into the third week”. Stocks gained following announcement of construction package, Abu Dhabi’s commitment to defer loan amount for Pakistan, stability in the crude oil price, and historic rise in remittance despite COVID19, Ahmad added.
Fahad Rauf, deputy head of research at Ismail Iqbal Securities, said, “The buying spree continued at PSX following Prime Minister’s announcement of housing initiatives over the weekend and as a result cement stocks grabbed 31 percent share of all traded volume”. Workers’ remittances increased by 51 percent year-on-year in June 2020 to $2.46 billion, while cements contributed most to the index gains, cumulatively adding 161 points, Rauf added.
Rafhan Maize, gaining Rs345 to close at Rs7,470/share, and Indus Motor Company, securing Rs52.76 to finish at Rs1,191.14/share, were the highest gainers, while Island Textile, losing Rs107.97 to close at Rs1,331.69/share, and Premier Sugar, shedding Rs45.77 to close at Rs564.56/share, emerged as the main losers.
Maple Leaf posted the highest volumes with 76.450 million shares, gaining Rs1.5 to end at Rs30.78/share, whereas Dewan Cement posted lowest turnover with 8.794 million shares and gained Rs0.51 to end at Rs8.81/share.