PSX continues bullish trend; gains 90 points

KARACHI: PSX continues bullish trend for the second consecutive session on Monday, as it gained 0.19 per cent, or 90 points, to close at 48,302.66 points.

The Pakistan Stock Exchange (PSX) started the week with a strong footing and remained in the green zone throughout the day. The activity was mainly triggered on the upcoming budget outlay and the country meeting 31 of the 40 recommendations of the Financial Action Task Force (FATF).

An analyst at Arif Habib Limited said the market saw heavy selling pressure against all the positive news flow that came to fruition over the weekend; from a possible reduction in the capital gains tax (CGT) to duty reduction for auto manufacturers and release of circular debt-related payments to the independent power producers (IPPs).

“Reportedly, International Steel Limited (ISL) increased prices today, which helped the stock price gain during the session; however, profit booking brought the price below [the] last closing by the end.”

The Pakistan Stock Exchange KSE-30 shares index gained 0.02 per cent, or 3.46 points, to close at 19,658.11 points.

As many as 428 scrips were active, of which 225 advanced, 181 declined and 22 remained unchanged.

The ready market volumes stood at 936.08 million shares, compared with the turnover of 867.3 million shares in the last trading session on Friday.

Maaz Mulla at JS Global Capital said the KSE-100 stayed in the green zone throughout the day, gaining 90 points.
“Cement sector dispatches were recorded at 3.947 million tonnes during May 2021 against 2.634 million tonnes dispatched during the same month last year where Flying Cement gained 5 per cent; Pioneer Cement, 2 per cent; Maple Leaf Cement, 1.1 per cent; and DG Khan Cement surged 0.3 per cent, closed in the green zone.”

The government on Friday completed Rs89.2 billion transactions as the first instalment of payments to 20 IPPs from the Rs403 billion committed under a settlement agreement with 46 IPPs signed in February.

PSX continues bullish trend

This had a positive impact on Kot Addu Power Company (Kapco), which gained 0.5 per cent, Hub Power Company (Hubco) went up 0.7 per cent, Pakgen Power (PKGP) gained 7.5 per cent and Lalpir Power Limited (LPL) closed 4.3 per cent up.

Exploration and Production (E&P), refinery, oil and gas marketing companies, and technology stocks bore selling pressure. Kot Addu Power Company, which was the main beneficiary of the release of the circular debt-related funds from the government, could not stand firmly and selling pressure brought its price below the last day closing.

Moving forward, analysts anticipate the market to remain upbeat given the gradual ease in the lockdown restrictions.
The companies that reflected the highest gains included Unilever Foods, which rose Rs899 to close at Rs17,199/share, and Rafhan Maize went up Rs275 to close at Rs9,725/share.

The companies, which reflected the most losses included Wyeth Pakistan, down Rs197.38 to close at Rs2,434.39/share; and Mehmood Textiles, down Rs12.04 to end at Rs450/share.

The highest volumes were witnessed in Hum Network with a turnover of 118.20 million shares. The scrip gained 74 paisas to close at Rs8.68/share; followed by the WorldCall Telecom with a turnover of 80.74 million shares. It sheds one paisa to close at Rs3.5/share.

Pakistan Telecommunication was third with a turnover of 64.76 million shares as it gained 78 paisas to finish at Rs12.64/share.