Market watch: PSX closes 2020 on positive note

Benchmark KSE-100 index rises 60.62 points to settle at 43,755.38

KARACHI:

The final trading session of 2020 was marred by volatile activity as the benchmark KSE-100 index kept climbing and dipping throughout the day. However, optimistic investors aided the index to close the year with a slim gain of 61 points.

The uptrend was supported by Prime Minister Imran Khan’s announcement of extension in the fixed tax regime for the construction sector on Thursday. It triggered a rally in cement and steel sectors and as a result, major stocks of the two sectors closed in the green.

In the morning, trading began with a sharp spike, however, volatility emerged later and caused the index to oscillate between positive and negative zones throughout the day. Late session buying helped the market add to the gains and finish on a positive note.

At close, the benchmark KSE-100 index recorded an increase of 60.62 points, or 0.14%, to settle at 43,755.38 points.

Arif Habib Limited, in its report, stated that the market opened on a positive note on the last trading day of CY20, adding a total of 195 points during the session and closing up by 61 points.

On an annual basis, the benchmark index returned 7% with the highest close since 2016.

Institutional investors resorted to mark-to-market activity besides booking profit on positions taken earlier to improve half-year and full-year financial results.

The cement sector took cue from extension in the real estate amnesty scheme by the prime minister, which would eventually help listed companies of the cement and steel sectors, the report said.

JS Global analyst Danish Ladhani said the KSE-100 index closed 61 points positive at 43,755 after touching a high of +195 points on the last trading day of 2020.

Interest was mostly seen in financial and cement stocks, among which MCB (+0.8%), UBL (+1.3%), Lucky Cement (+0.8%), Maple Leaf Cement (+3.3%), Kohat Cement (+1.5%), DG Khan Cement (+1.6%) and Fauji Cement (+2.2%) were the major movers, contributing 86 points to the index.

Moreover, investors’ interest was seen in sideboard stocks, of which Pakistan Refinery (+2.2%), Silkbank (+5.9%), Fauji Fertiliser Bin Qasim (+7.5%), TRG Pakistan (+0.5%), Pakistan International Bulk Terminal (+0.7%), Maple Leaf Cement (+3.3%) and Azgard Nine (+1.1%) contributed a total of 232 million shares.

Furthermore, Pakistan would purchase 1.2 million Covid-19 vaccine doses from China’s Sinopharm as the world battled the second wave of infections.

 “Moving forward, we expect the market to remain bullish in 2021 and recommend investors to buy on dips,” the analyst said.

Overall, trading volumes rose to 578.3 million shares compared with Wednesday’s tally of 456 million. The value of shares traded during the day was Rs23.8 billion.

Shares of 417 companies were traded. At the end of the day, 207 stocks closed higher, 193 declined and 17 remained unchanged.

Pakistan Refinery was the volume leader with 41.5 million shares, gaining Rs0.51 to close at Rs23.79. It was followed by Silkbank with 38.5 million shares, gaining Rs0.06 to close at Rs1.08 and Fauji Fertiliser Bin Qasim with 36.8 million shares, gaining Rs1.76 to close at Rs25.32

Foreign institutional investors were net sellers of Rs278.6 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.