Stocks extend bull-run on investor optimism

The Pakistan Stock Exchange (PSX) kicked off trading on Tuesday with optimism as bulls held on to their positions owing to robust investor interest and ahead of financing from Saudi Arabia and China. The benchmark KSE-100 index recorded a positive trading session where the market maintained its bullish momentum. Investors took fresh positions and were seen active throughout the day, buying stocks at attractive valuations.

Decline in international coal prices encouraged market players to make stock purchases in the cement sector. Pakistani rupee stayed unchanged at Rs221.65 to a dollar in the inter-bank market, which also provided some relief to the bourse. At close, the benchmark KSE-100 index recorded an increase of 218 points, or 0.52%, to settle at 42,265.36. Topline Securities, in its report, said that Pakistan equities closed positive where the benchmark KSE-100 index settled at 42,265, up 0.52%.

“The market continued its positive momentum over expectation of rollover of $13 billion debt by China and Saudi Arabia,” it said. Furthermore, investors cheered the decline in international coal prices, which put the cement sector in the limelight where Lucky Cement, Cherat Cement, Fauji Cement and Pioneer Cement closed higher. Major positive contributors were Meezan Bank, Engro Corporation and Bank Alfalah, which added a total of 71 points to the KSE-100 index.

Traded volume and value for the day stood at 228.29 million shares (down 5%) and Rs5.7 billion (up 5%) respectively. Fauji Foods was the volume leader with trading in 31.07 million shares, Topline report added. Arif Habib Limited, in its report, said another range-bound session was witnessed at the stock exchange. “The market opened in the positive zone while continuing its momentum from the previous close. But investor participation remained sluggish throughout the session,” it said.

“Investors went for value hunting across the board, though the cement sector was in the limelight due to the plummeting international coal prices.” The index closed at 42,265.36, up by 218 points (+0.52% day-on-day). Sectors contributing to the performance included commercial banks (+97.9 points), cement (+61.6 points), fertiliser (+43.2 points), E&P (+40.3 points) and automobile assemblers (+26.7 points). Volumes decreased from 240.2 million shares to 237.4 million (-1.2% dayon-day).

Traded value increased by 6.5% to $26.2 million against $24.6 million a day ago, Arif Habib report added. JS Research analyst Mohammed Waqar Iqbal said that the KSE-100 remained positive throughout the session and closed at 42,265, gaining 218 points. Traded volume stood at 237 million shares where Fauji Foods (8.7%), WorldCall Telecom (-2.5%), Cnergyico PK (2%), Hascol Petroleum (-4.1%) and Faysal Bank (5.7%) were the major contributors. “Going forward, we expect range-bound activity and hence recommend investors to avail any downside as an opportunity to buy in cement and textile sectors,” the analyst said.

Overall trading volumes decreased to 237.4 million shares compared with Monday’s tally of 240.2 million. The value of shares traded during the day was Rs5.8 billion. Shares of 362 companies were traded. At the end of the day, 188 stocks closed higher, 142 declined and 32 remained unchanged. Fauji Foods was the volume leader with 31.1 million shares, gaining Rs0.51 to close at Rs6.35. It was followed by WorldCall Telecom with 22.9 million shares, losing Rs0.04 to close at Rs1.57 and Cnergyico PK with 14.3 million shares, gaining Rs0.1 to close at Rs5. Foreign investors were net buyers of Rs25.5 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.