Market watch: KSE-100 rallies for eighth successive session

Benchmark index gains 170.58 points to settle at 35,373.35

KARACHI:

Bullish sentiment prevailed at the Pakistan Stock Exchange as the winning streak continued for the eighth successive session on Tuesday on back of improved investor sentiment.

After a surge in the initial hour, the KSE-100 index traded in the green for the entire session amid a few dips. Investors took cues from positive cement sales numbers that grew almost 20% on a year-on-year basis in June 2020. As a result, cement sector scrips remained in limelight during the session and closed mostly positive.

Strong investor sentiments were reflected in increased volumes during trading hours. The upbeat trade data also acted as a catalyst in boosting confidence of the participants.

At close, the benchmark KSE-100 index recorded an increase of 170.58 points, or 0.48%, to settle at 35,373.35 points.

A report by Arif Habib Limited stated that the market continued ascent on Tuesday with the benchmark index posting gains of 270 points during the session and closed +176 points (unadjusted).

“Exploration and production, oil marketing companies, cement and banking sector remained in the limelight. Banking sector has lately seen improvement of investor sentiment.”

Meanwhile, refinery and chemical sector stocks saw profit-booking after Monday’s performance, it added.

The cement sector also witnessed traction on the back of improved dispatches as well as better outlook on construction of hydel power and the China-Pakistan Economic Corridor projects.

JS Global analyst Maaz Mulla said, “Recovery in the market came as optimistic investors came in to accumulate positions at attractive levels.”

Cement sector remained the center of attention as cement dispatches surged by 29.9% in June 2020.

Cherat Cement (3.3%), Pioneer Cement (3.3%), Maple Leaf Cement (2.0%), Fauji Cement (2.3%), Kohat Cement (0.9%) and DG Khan Cement (0.9%) were the major movers of the mentioned sector.

Moreover, from the banking sector Bank Al Falah (3.9%), NBP (1.9%), Meezan Bank (1.7%), UBL (1.3%) and HBL (0.5%) closed higher than their previous day close.

From the automobile sector, Indus Motor Company (7.5%), Honda Atlas Cars (7.0%), Hino (7.5%) and Pak Suzuki Motor Company (5.5%) enjoyed the upward rally to close in the green zone.

“Moving forward we expect the market to follow the same trend and our top picks are the cement and oil marketing companies sector,” the analyst added.

Overall, trading volumes soared to 333.9 million shares compared with Monday’s tally of 332.3 million. The value of shares traded during the day was Rs12.2 billion.

Shares of 394 companies were traded. At the end of the day, 207 stocks closed higher, 157 declined and 30 remained unchanged.

Pak Elektron was the volume leader with 32.9 million shares, losing Rs0.01 to close at Rs26.24. It was followed by Hascol with 31.5 million shares, gaining Rs0.46 to close at Rs14.22 and Lotte Chemical with 24.1 million shares, losing Rs0.27 to close at Rs10.8.

Foreign institutional investors were net sellers of Rs516.4 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.