Can't connect right now! retry

add The News to homescreen

tap to bring up your browser menu and select 'Add to homescreen' to pin the The News web app

Got it!

add The News to homescreen

tap to bring up your browser menu and select 'Add to homescreen' to pin the The News web app

Got it!
December 8, 2018

PSX ends high on strong cement stocks, bargain hunting


December 8, 2018

Stocks rose on Friday, with the key index gained with growth sectors such as cement as investors, snapped up oversold shares, appeared to regain confidence in the economy after upbeat comments from the government officials, dealers said.

Analyst Ahsan Mehanti of Arif Habib Corporations said stocks showed recovery led by oversold cement, banking and fertilizer scrips on strong valuations.

Pakistan Stock Exchange’s (PSX) benchmark KSE-100 shares index gained 0.68 percent or 261.42 points to close at 38,562.05 points level.

KSE-30 shares index followed suit with a high of 0.54 percent or 99.26 points to end at 18,382.42 points level.

Of 354 active scrips, 228 moved up, 108 retreated, and 18 remained unchanged.

The ready market volumes stood at 128.530 billion shares, as compared with the turnover of 189.763 billion shares in the previous session.

Dealers said a government decision to start construction of Daimler Basha Dam from next year attracted investors towards cement counters.

The market opened on a negative note and registered a session low of 37,771 points.

Investor concerns for falling foreign currency reserves and reports of over Rs31 trillion public debt burden invited mid-session pressure. Auto stocks remained weak amid ongoing rupee depreciation.

Lower than expected CPI Inflation for Nov’18 and played a catalyst role.

However, short-covering from the financial institutions and fresh buying from mutual funds in selected scrips including auto, banks, cement, fertilizer and oil and exploration sectors turned the table and the market closed on a positive note.

The government’s plan to start the construction of Daimler Basha Dam from June 2019 resulted in fresh deals in the cement stocks. Prime Minister Imran Khan’s statement on Shanghai Electric planned investment in the country also helped K-Electric to show some recovery.

“The market anxiously waiting for the positive development on the economic front and investors tie hope with the upcoming visit of Prime Minister Imran Khan to Karachi,’ said Salman Ahmed director equity sales at Aba Ali Habib.

However, during the week investors mostly stayed on the sidelines. Adil Ghaffar, chief executive officer of First Equity Modarba, said recent devaluation of rupee and increase in policy rate had manifolds increased the cost of business.

“Accordingly, these factors have dramatically changed the present and future forecasts of earning potential of listed companies".

The highest gainers were Island Textile, up Rs70.65 to close at Rs1,579.25/share, and Pakistan Tobacco, up Rs30.01 to finish at Rs2,374.00/share.

Companies that booked highest losses were Shezan International, down Rs18.00 to close at Rs500.00 / share, and Blessed Textile, down Rs16.49 to close at Rs313.50/share.

K-Electric Limited recorded the highest volumes with a turnover of 13.903 million shares.

The scrip gained Rs0.35 to close at Rs5.53/share.

The lowest volumes were witnessed in Pakistan Elektron, recording a turnover of 12.012 million shares, and losing Rs0.09 to end at Rs24.81/share.

Topstory minus plus

Opinion minus plus

Newspost minus plus

Editorial minus plus

National minus plus

World minus plus

Sports minus plus

Business minus plus

Karachi minus plus

Lahore minus plus

Islamabad minus plus

Peshawar minus plus