PSX ends two percent up; cement, oil stocks gain

Pakistan shares rose almost two percent on Wednesday, in line with global markets, with cement stocks were leading the gains after an increase in retail prices, dealers said.

Sentiment was also boosted by a global relief rally as the immediate impact of Brexit began to fade, they added.

The Pakistan Stock Exchange (PSX) benchmark KSE-100 shares index gained 1.91 percent or 709.94 points to close at 37,786.57 points.

The KSE-30 shares index gained 2.2 percent or 466.94 points to close at 21,655.23 points. As many as 343 scrips were active of which 272 advanced, 49 declined and 22 remained unchanged.

The ready market volumes stood at 134 million shares as compared to 158.900 million shares in the last trading session.

“Global markets recovered after decline caused by Brexit, along with the end of financial year 2016 which helped PSX to gain 1.88 percent,” Topline Securities said in a post market report.

Analyst Ahsan Mehanti at the Arif Habib Corp said recovery in global equities and crude prices led the bullish run at the PSX.

“Record cements dispatches data for July-March 2016, rising banking spreads, new oil & gas discoveries in Sindh and the ADB (Asian Development Bank) approval on $600 million loan for ailing public sector enterprises played a catalyst role for positive close at the PSX”. 

Analyst Arham Ghous at the JS Global Capital said positivity prevailed in the day’s session as the market following its regional peer trend.

“Investor interest was seen in cement sector on the back of the news that cement companies have increased prices by Rs35/bag to pass on increase in the federal excise duty mechanism from five percent of MRP to Rs1/kg in the recent budget announcement,” Ghous said.

Major gainers of the cement sector were LUCK up 4.03 percent and Pioneer Cement (PIOC) up 4.33 percent.

Oil & Gas Development (OGDC) up 2.25 percent, Pakistan Oilfields (POL) up 2.10 percent and Pakistan Petroleum (PPL) up 1.84 percent in the E&P sector closed in the green zone, as crude oil prices continued its upward trajectory to trade above $48/bbl level.

Moving forward, analysts expect the market activity to remain correlated with the trend in global equity markets.

Companies reflecting highest gains included Rafhan Maize surging by Rs226.57 to close at Rs7600 while Bata Pakistan gained Rs169 to end at Rs4000/share.

Companies reflecting major loss included Island Textile down by Rs24.50 to close at Rs945 while Feroze 1888 shed Rs17.44 to end at Rs331.51/share.

Highest volumes were witnessed in K-Electric Limited (KEL) with a turnover of 17.94 million shares.

The scrip gained 24 paisas to close at Rs8.09. It was followed by TRG Pakistan with a turnover of 7.076 million shares. The scrip gained Rs1.63 to close at Rs34.29.

Sui Northern Gas Pipelines Limited was the third with a turnover of 6.994 million shares. It gained Rs1.72 to finish at Rs36.29/share.