Cement, steel sectors drive stock market higher
KARACHI – The Pakistan Stock Exchange (PSX) showed record recovery on weekend as the benchmark KSE 100-index closed at 39,471 points as compared to 38,716 points of Thursday, up by 755 points.
Investors’ confidence seems to have reposed on the fundamentals. Highlight of the day were cement and steel sectors, which drove the market sentiment and were at highly attractive PEs compared with the Thursday’s PE bands of respective scrips. Individuals have been participating to the advantage of mutual funds, which are expected to come positive in the coming week to build on where individuals have left at the end of this week. The objective seems to be relatively better NAVs and portfolio values which will end the quarter/half year for banks and mutual funds in green.
Also, decline in oil & gas output from key fields contributed to negative sentiment towards key E&P scrips. For next week, downside risk emanates from oil & gas E&P sector which is the only sector foreign investors are heavily invested in and can drag the market down, said report of Arif Habib brokerage.
Sectors contributing to this increase were cement that added 152 points, commercial banks that added 94 points, O&GMCs 91 points and Fertilizer that contributed 89 points to the index gain.
Scrips that contributed positively include LUCK that added 60 points, PSO 42 points, FFC 40 points, OGDC 38 points and UBL that added 37 points to the index respectively. Stocks that contributed negatively include POL that shed 29 points, PPL that detracted 14 points, MUREB 6 points, BATA 4 points and DAWH that took away 4 points from the index respectively.
After a very long time, market volumes crossed 200m mark. The total volumes clocked at 222.8m shares as compared to 179.6m shares of previous day (up 24% DoD). Average traded value also increased from $62.4m to $82.6m (up 32% DoD).
Stocks that contributed significantly to the volumes include DSFL, LOTCHEM, TRG, WTL and KEL contributing a total of 68m shares, reflecting 31% share of total volumes.