PHOTO: AFP
Most blue chips within the cement sector reached close to their upper limits as bullish momentum carried on from Wednesday's session played its part in stimulating stock buying.
At the end of trading, the benchmark KSE 100-share Index registered an increase of 224.58 points or 0.56% to settle at 40,371.31.
According to Elixir Securities' analyst Zainul Abedin, Pakistan equities carried the previous momentum and closed positive for the sixth consecutive session with the KSE-100 Index rising above 40,350.
The market exhibited a choppy behaviour until mid-day with the KSE-100 succumbing to mild intra-day profit-taking. Later, institutional buying in blue chips across financial and cement sectors pushed the index higher.
Cement stocks continued their upward march and blue chips Lucky Cement (+3.5%) and DG Khan Cement (+2.8%) contributed to KSE-100's rise while small-caps Pioneer Cement (+5%), Cherat Cement (+4.4%) and Dewan Cement (+6.3%) also had a field day. They settled at or near their upper price limits.
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Meanwhile, the management of Engro Polymer and Chemicals (-3.3%), in a notification, approved capital expenditure of about Rs10.3 billion for addition of a new PVC plant and VCM plant debottlenecking. The announcement of a higher percentage of capital expenditure by issuing right shares (52%) dented investors' sentiments and dragged down the stock.
"We expect the market to trade volatile tomorrow (Friday) with likely window dressing in illiquid stocks as we head into the year-end," he added.
JS Global analyst Maaz Mulla said the market maintained its upward trend as flows in cement, steel and gas utilities' stocks kept investors' sentiment intact.
The market hit an intra-day low of -115 points and a high of +317 points to close positive at 40,371. On the news front, the State Bank of Pakistan (SBP) expressed optimism that the current account deficit may be contained to a manageable level in coming months due to the recent measures taken to arrest the decline in foreign exchange reserves.
Traded volumes improved 20% to 239 million shares while traded value surged to $82 million. Top stocks were WorldCall Telecom (+0.34%), Dost Steels (-4.10%) and TRG Pakistan (+1.04%).
Sui Southern Gas Company (+5%) closed at its upper circuit on the back of news that the government was likely to offer an incentive of about Rs31 billion to the company.
Cement stocks also continued to be in the limelight as bottom-fishing continued with DG Khan Cement (+2.83%), Lucky Cement (+3.45%), Cherat Cement (+4.43%), Kohat Cement (+5%) and Pioneer Cement (+5%) remaining the major movers.
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Engro Polymer (-3.25%) gave up the intra-day movement to close at Rs30.06 after it notified its expansion plans. Investors apparently remained unwelcoming to the potential rights issue by the company.
"We advise investors to avail themselves of opportunities in cement, steel and oil sectors," he added.
Overall, trading volumes increased to 239 million shares compared with Wednesday's tally of 199 million.
Shares of 355 companies were traded. At the end of the day, 202 stocks closed higher, 135 declined while 18 remained unchanged. The value of shares traded during the day was Rs9.04 billion.
WorldCall Telecom was the volume leader with 55.08 million shares, gaining Rs0.01 to close at Rs2.98. It was followed by Dost Steels with 18.9 million shares, losing Rs0.44 to close at Rs10.30 and TRG Pakistan with 12.4 million shares, gaining Rs0.32 to close at Rs31.14.
Foreign institutional investors were net buyers of Rs58 million during the trading session, according to data compiled by the National Clearing Company of Pakistan.
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