Stocks made progress Monday with cement companies stealing attention, following news of the construction sector subsidies, which strengthened bets on strong earnings in the cyclic and allied industries in the upcoming yield season, dealers said.
Benchmark Pakistan Stock Exchange (PSX) KSE-100 stock index rose 1.18 percent or 428.16 points to close at 36,618.57 points, while KSE-30 reached the highest level of 1.32 percent or 207.34 points to end at level of 15,901.05 points.
Topline Securities in a note said, “Taking the cue from the rise in international markets and international oil prices, the market opened on a positive note making an intraday high of 531 points.
Cement and steel remained in the spotlight during the announcement of the Rs30 billion subsidy for Pakistan’s Naya Housing Scheme and reported that the Prime Minister was scheduled to visit the Diamer-Basha dam site to review project progress, lead the CHCC, DGKC, and MUGHAL to close at each other’s top circuits, broker added.
Of the 403 active scripts, 236 rose, 151 retreated, and 16 remained unchanged, while volume swelled to 468,906 million large shares, 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 from cement and steel, the benchmark index maintains upward momentum”. “Prime Minister Imran Khan is expected to announce the start of Basha Dam to further accelerate the steps of these groups.”
Rafi said financial results will start flowing from next week where select purchases are likely to be recorded in the sector. Tahir Abbas, research director at Arif Habib Limited, said, “Cement and steel stocks led the positive column after the government announced a construction package, helping to lift economic activity together with the sale of these sectors and allies”.
Over the weekend Prime Minister Imran Khan revealed plans to build around 100,000 homes, which played an important role in maintaining the green zone market for nearly 12 sessions, Abbas added.
Salman Ahmad, head of institutional sales at Aba Ali Habib Securities, said, “Many positive developments helped market trading in the plus zone and entered the third week”. Stocks rose after the announcement of the construction package, Abu Dhabi’s commitment to postpone the amount of loans to Pakistan, the stability of crude oil prices, and the historic rise in remittances despite COVID19, Ahmad added.
Fahad Rauf, deputy head of research at Ismail Iqbal Securities, said, “The buying action continued at PSX following the Prime Minister’s announcement of housing initiatives over the weekend and as a result cement stocks reached 31 percent of all trading volumes”. Worker remittances increased 51 percent year-on-year in June 2020 to $ 2.46 billion, while cement contributed most to the index increase, cumulatively adding 161 points, Rauf added.
Rafhan Maize, earning Rs345 to close at Rs7,470 / share, and Indus Motor Company, securing Rs52.76 to end at Rs1,191.14 / share, was the highest gainers, while Island Textile, losing Rs107.97 to closing at Rs1 , 331.69 / share, and Premier Sugar, spilling Rs45.77 until it closed at Rs564.56 / share, appearing as the main loser.
Maple Leaf posted the highest volume with 76,450 million shares, gaining Rs1.5 to end at Rs30.78 / share, while the Cement Board recorded the lowest turnover with 8.794 million shares and rising Rs0.51 to end at Rs8.81 / share.