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February 17, 2021

Stocks stay the course as cements, banks soar

Business

February 17, 2021

Stocks stayed the stellar course on Tuesday, led by cements and banks with much of the sentimental strength drawn from a global rebound, dealers said.

Pakistan stock exchange (PSX) KSE-100 shares index gained 1.06 percent or 492.36 points to close at 46,867.95 points. KSE-30 shares index gained 1.41 percent or 272.19 points to close at 19,619.30 points. Volumes increased to 514.208 million shares from 486.375 million on Monday.

Jawad Vohra at BMA Capital said cement sector continued to perform well, contributing 160 points to the index in which Lucky Cement led the rally and increased around 5.0 percent.

“In addition, banking stocks were also in limelight which contributed around 125 index points due to healthy cumulative cash payout from mainboard banks. Other sectors showed range bound activity,” Vohra added.

Out of 417 active scrips, 244 advanced, 180 declined, and 13 ended unchanged.

Ahsan Mehanti at Arif Habib Corp said stocks closed bullish led by oil, banking and cement scrips on surge in global equities and crude oil prices.

The government’s decision to reduce petroleum levies, 19 percent surge in home remittances, increased cement and automobile sales contributed to the bullish close.

According to a report issued by Arif Habib Limited, brisk buying continued in the cement sector for the third day in a row, making a major contribution to the points table, while similar activity was witnessed in steel and technology sectors.

Among Banks, Habib Bank Limited saw buying in anticipation of annual results scheduled for Wednesday causing the stock to close near session’s high, the brokerage report added.

Zaid Aftab at Pearl Securities said central bank allowed commercial banks to accept third party guarantee for Naya Pakistan Housing Scheme loans, which built the interest in banking and cement sector.

“On the other side, Prime Minister rejected the OGRA (Oil and Gas Regulatory Authority)

proposed increase in petroleum products prices keeping them the same for the rest of the month, which resulted in selling in oil stocks,” Aftab said.

Lucky Cement gained 4.9 percent to close at Rs832.06, Habib Bank Limited 2.27 percent to close at Rs137.96, MCB Bank 2.6 percent to end at Rs190.07, TRG Pakistan 3.5 percent to Rs125.93, and Engro Corp closed Rs1.29 percent higher to end at Rs307.98.

Bata Pakistan up Rs59.2 to close at Rs1,829/share and Sunrays Textile, up Rs47.99 to close at Rs687.98/share, were the top gainers of the day.

Unilever Foods, down Rs450 to close at Rs13,550/share and Sapphire Textile, down Rs74 to end at Rs915/share, were the worst losers of the session.

Analysts say the market has been continuously facing resistance around 47,000 points index levels and once it breaches this barrier with healthy volume, it will further extend the bullish momentum in the near-term.

Hum Network led volumes with a turnover of 55.46 million shares and gained Rs1.0 to close at Rs7.11/share.

Telecard Limited was second on volumes chart with a trade of 55.44 million shares. It gained Rs1.0 to close at Rs7.63/share.

Maple Leaf Cement was third with 36.17 million shares. The cement-maker gained Rs1.13 to finish at Rs48.23.