The capital market climbed 1.24 percent on Monday following fresh buying on positive vaccine developments, improving macroeconomic indicators and rising oil prices that spurred a rally in energy sector, dealers said.
Topline Securities in its market note said, “International oil prices continued with their uptrend as WTI stood above $60/barrel. Taking cue from international oil prices, the E&P sector closed up 2.4 percent, Oil Marketing Companies (OMCs) closed up 2.0 percent, while the refinery sector closed up 0.8 percent.”
Pakistan Stock Exchange (PSX) benchmark KSE-100 shares index gained 1.24 percent or 567.23 points to close at 46,375.59 points level. KSE-30 shares index gained 1.27 percent or 242.61 points to close at 19,347.11 points level. As many as 405 scrips were active of which 246 advanced, 141 declined and 18 remained unchanged.
The ready market volumes stood at 486.375 million shares, compared with the turnover of 442.716 million shares in the last trading session.
On the results front, Engro Fertilizers announced its CY20 consolidated Earnings per share (EPS) of Rs13.58 (up 7.44 percent) along with a final cash dividend of Rs4/share after which the stock closed up 2.27 percent.
An analyst at Arif Habib Limited said market priced in the positive fundamentals relating to foreign remittances as well as the expectation of better quarterly results of the corporate sector, which so far posted plus 60 percent growth, and brought support to the index from overall fertiliser sector.
“Cement sector continued uptrend on the prospects of better results, whereas E&P sector benefited from an increase in international crude oil prices. Similarly, HBL and UBL rebounded cautiously during the session, contributing to the index,” the analyst added.
Oil and Gas Development Company (OGDCL) gained 3.39 percent to close at Rs112.24/share, Pakistan Petroleum Limited (PPL) surged 2.17 percent to close at Rs92.13, and Pakistan State Oil (PSO) was up 1.2 percent to end at Rs251.96/share, while Attock Refinery (ARL) closed at Rs223.08/share, up 2.11 percent.
Selling pressure witnessed last week from institutional and foreign investors subsided in banks and fertiliser sectors that resulted in improved performance across the board.
The textile sector gained in anticipation of the textile policy being approved. Azgard Nine Limited gained 1.8 percent, Nishat Mills Limited was up 3.7 percent, Gadoon Textile gained 3.1 percent and Nishat Chunian Limited climbed 3.6 percent.
Danish Ladhani at JS Global Capital said in a bullish start to the week, the KSE-100 index closed up 567 points. “Given the trend, we recommend investors to avail any upside as a selling opportunity.”
Companies reflecting highest gains included Bata Pakistan, up Rs90.4 to close at Rs1,769.8/share, and Sapphire Textile, up Rs60.33 to close at Rs989/share.
Companies reflecting most losses included Indus dyeing, down Rs28.9 to close at Rs611/share, and Colgate Palmolive, down Rs25.99 to end at Rs2,800.01/share.
Highest volumes were witnessed in World Telecom with a turnover of 40.31 million shares. The scrip gained 14 paisa to close at Rs1.53/share.
Maple Leaf Cement was second with a turnover of 35.65 million shares. It gained Rs1.89 to close at Rs47.1/share. Telecard Limited was third with a turnover of 28.704 million shares. It gained Re1.0 to finish at Rs6.63.