Monday, October 18, 2021

Cement, steels keep PSX green on hopes of amnesty extension

The capital market on Thursday, last session before long weekend, closed positive pushed forward by a surge in steel and cement shares on reports that the government was mulling proposal to extend amnesty scheme for the construction sector, dealers said.

Pakistan Stock Exchange (PSX) benchmark KSE-100 shares index gained 0.76 percent or 329.07 points to close at 43,416.77 points level, while volumes decreased to 570.583 million shares, as compared with the turnover of 378.938 million shares in the previous session.

KSE-30 shares index followed suit with a high of 0.88 percent or 158.54 points to end at 18,097.72 points level.

Yousuf Saeed, head of research at Darson Securities said the market witnessed some correction during the last day of rollover week as investors were taking fresh positions. Improved economic indicators, expectations of extension in construction amnesty scheme till June 2021, and increase in margins of oil marketing companies (OMC) brought the cement and OMC stocks in limelight.

The market remained robust during the session, marking an intra-day high of 544 points. KSE100 outperformed mainly on the approval of EV policy by the Cabinet along with the rise in cement and steel prices.

Muhammad Saeed Khalid, head of research at Shajar Capital said investors bought heavily in the construction sector, where we have noticed strong participation in Maple Leaf Cement, Power Cement, and Fauji Cement.

“Investors also remained robust in the Ghani stocks ahead of right issue of 140 percent in Ghani Global Glass Ltd,” Khalid added.

Trading activity was recorded in 402 active scrips, of which 232 increased, 150 lost, and 20 remained unchanged.

Salman Ahmad, head of institutional sales at Aba Ali Habib said, “The amicable settlement of the rollover week, which saw highest value contracts, helped boost the sentiment.”

Healthy economic indicators and higher crude oil prices also boosted share prices.

With only a few days left before year closes, it is expected that the index will gain further once inflation numbers were out for December, Ahmad added.

AA Soomro, managing director, KASB Securities said, “KSE-100 bounced upwards as the value-traded shifted from technology towards cements, automobile, steel and glass.”

The expectations of rising cement prices amid presumed higher off-take in December kept the cyclicals excited. Moreover, the government was trying to convince the International Monetary Fund (IMF) to extend the amnesty offered to the construction industry that would likely to add demand within the sector, Soomro added.

Analyst Ahsan Mehanti from Arif Habib Corporation said stocks closed bullish led by oil, banking and cement scrips on strong valuations.

Record receipts of $200 million in Roshan Digital Accounts, higher global crude oil prices, strong economic data, and surging steel, fertiliser, and cement stocks played a catalytic role in the bullish close, he added. Unilever Foods, up Rs945 to close at Rs13,545/share, and Rafhan Maize, strengthening by Rs348 to finish at Rs9,350/share, were the main gainers.

Nestle Pakistan, down Rs37.50 to close at Rs6,600/share, and Gillette Pakistan, losing Rs37.17 to close at Rs526.08/share, were the main losers.

Unity Foods Limited led volumes with 46,887 million shares. The scrip gained Rs1.76 to end at Rs28.51/share. Hascol Petrol posted the lowest turnover with 16,813 million shares. It gained Re0.1 to end at Rs14.44/share.



Source: The News

Latest News

169.6k Followers
Follow

Related News

Leave a reply

Please enter your comment!
Please enter your name here