Stocks eke out gains on cement sector strength

The stock market closed in green on Friday amid pre-budget speculations about likely incentives for the real estate sector that affected the cement stocks positively, traders said.The Pakistan Stock Exchange's (PSX) benchmark KSE 100-share Index ended higher by 86.22 points or 0.21 percent to 41,352.99 points against 41,266.77 points recorded in the last session. The highest index of the day remained at 41,403.44 points while the lowest level of the day was recorded at 41,237.41 points.

Ahsan Mehanti, an analyst at Arif Habib Corp, said, “Stocks closed higher led by the cement sector on pre-budget speculations amid reports of over Rs900 billion PSDP allocations and incentives for the real estate sector and upbeat data on cement sales rising by 19.4 percent YoY [year-on-year] in May ‘23.”

He added that investor expectations on a firm SBP policy despite high inflation amid govt talks on a new IMF loan deal had played a catalyst role in a bullish close. KSE-30 index also ticked up by 5.91 points or 0.04 percent to 14,664.14 points compared with 14,658.23 points recorded in the last session. Traded shares remained flat at 99.545 million shares compared with 99.950 million shares. The trading value increased to Rs3.336 billion from Rs2.867 billion. Market capital expanded to Rs6.276 trillion from Rs6.258 trillion. Out of 296 companies active in the session, 146 closed in green, 120 in red and 30 remained unchanged.

Analyst Nabeel Haroon at Topline Securities said a dull session was observed at the exchange as the index traded between its intraday high of 137 points and intraday of low -29 points. Major contributions to the index came from UBL, DAWH, DGKC, HUBC & LOTCHEM, as they cumulatively contributed 132 points. On the flip side, ENGRO, HBL, POL, EFERT & PSEL lost value to weigh down on the index by -100 points. The highest increase was recorded in Sapphire Fiber shares, which rose by Rs59.98 to Rs1,259.98 per share, followed by Bata (Pak), which increased by Rs48.50 to Rs1,694 per share. A significant decline was noted in Unilever Foods, which fell by Rs449 to Rs22,050 per share, followed by Khyber Textile, which decreased by Rs47.25 to Rs582.75 per share.

Brokerage Arif Habib Ltd said the week concluded with another mixed session at the PSX. “As a result of the country's precarious political and economic condition, the benchmark KSE-100 index had a range-bound session,” it reported.

“Investors chose to be cautious during the trading session, as sideways activity was observed. Volumes were flat, while the cement sector remained in the spotlight following a substantial surge in cement dispatch numbers.” Sectors contributing to the performance included commercial banks (+59.5 points), cements (+32.9 points), inv. bank/securities (+16.9 points), chemicals (+14.9 points) and power (+14.4 points). Pak Int. Bulk remained the volume leader with 10.345 million shares which closed higher by 30 paisas to Rs4.22 per share. It was followed by WorldCall Telecom with 9.402 million shares, which closed lower by one paisa to Rs1.17 per share.

Other significant turnover stocks included D.G.K. Cement, Maple Leaf, Bank Al-Falah, Air Link Commun, Habib Bank, Gul Ahmed, Cnergyico PK and Fauji Cement. Shares’ turnover in the future contracts decreased to 21.323 million shares from 33.616 million shares.