Market watch: KSE-100 advances 204 points amid buying in cement

Benchmark index increases 0.61% to settle at 33,861.59

KARACHI: In contrast to the high political climate, the stock market witnessed bullish trade buoyed by activity in cement and oil scrips.

Following an uncertain start to the day, the KSE-100 maintained a steady upward climb and managed to power past the 34,000-mark. Although, later the index retreated slightly it remained in the green zone.

At close, the benchmark KSE 100-share Index recorded an increase of 204.13 points, or 0.61%, to settle at 33,861.59.

JS Global analyst Danish Ladhani said the market observed a bullish momentum throughout the day, reaching an intraday high of 351 points, before the KSE-100 index closed at 33,861 levels.

"Major positive contribution came from the cement sector as PM Imran Khan asked the Frontier Works Organization to defer the implementation of axle load condition in a move to appease the traders' community," he said.

As a result, DGKC (+5.0%), MLCF (+6.5%), KOHC (+5.0%), CHCC (+4.9%) and PIOC (+5.0%) all closed at their respective upper circuit. Steel sector also enjoyed the upward trend where ASTL (+5.0%), ISL (+4.5%), INIL (+5.0%) and MUGHAL (+5.0%) were the most gainers of today's trading session. FFC (-1.2%) from the fertiliser sector declared its 9MCY19 result, where the company posted an EPS of Rs9.80/share and a cash payout of Rs2.20/share.

"Moving ahead, we expect market to remain choppy due to tension on the political front and recommend investors to book profit on strength," Ladhani added.

Topline Securities, in its report, stated that the KSE-100 index started on a positive note for this trading week.

"Cement sector posted positive returns during the session on the news of deferring axle load policy for one year by government of Pakistan," the report added.

All major steel stocks also witnessed the positive impact of this decision as ASTL, MUGHAL, ISL and INIL closed on upper circuit; up by 5%.

Overall, trading volumes increased to 135.6 million shares compared with Friday's tally of 170.9 million. The value of shares traded during the day was Rs4.1 billion.

Shares of 343 companies were traded. At the end of the day, 223 stocks closed higher, 102 declined and 18 remained unchanged.

Pakistan International Bulk Terminal was the volume leader with 12.7 million shares, gaining Rs0.30 to close at Rs10.39. It was followed by TRG Pakistan with 7.7 million shares, gaining Rs0.97 to close at Rs16.79 and Fauji Cement with seven million shares, gaining Rs0.82 to close at Rs15.39.

Foreign institutional investors were net sellers of Rs176.6 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.