Daily Times

Pakistan equities rebounded strongly Tuesday and recovered all of the previous day’s losses.

Market kicked off on a positive note and advanced to 41,000 level instantaneously led by Cements and Steels, closing 875 points higher at 41,339 levels.

Lucky Cement gaining 3.54 percent, DG Khan Cement gaining 4.97 percent and Maple Leaf Cement gaining 4.51 percent hit their upper price limits on value buying post recent correction.

Similarly, International Steels gaining 5 percent, Amreli Steels gaining 4.99 percent and Mughal Steel gaining 4.99 percent also attracted buyers’ attention and closed at their respective upper bands.

A mid-day profit taking though wiped off some gains causing a blip to 40,800 mark, however the Index resumed its climb later as the bulls re-emerged in numbers in Index heavy weights Exploration and Productions (E&Ps), Oil Marketing Companies (OMCs) and financials which strengthened the impetus to go beyond 41,300 mark on close. E&P sector closed higher than its previous day close as crude oil prices edged higher in the international market.

Retail plays ruled the volumes chart with Bank of Punjab, Engro Polymer and K-Electric being the main contributors.

On the result front, Pak Suzuki Motor Company PSMC traded lower after announcing a below expected result due to a significant dip in margins.

“Optimism can continue on the back of timely general elections 25th July 2018 (today) especially if any single party gains majority seats in National Assembly, however we recommend Investors to book profits around 41,800/ 42,000 levels”, said, an equity analyst M. Zain ul Abedin.

The market will remain closed tomorrow on account of Elections.

Traded volumes increased by 75 percent day-on-day (DoD) to 191 million shares, while value traded increased to $ 60 million. Cement sector led the optimism after two straight sessions closing in the red zone.

Equity analyst Maaz Mulla expects market to remain green with flows from local and foreign institutions directing the market following the General Elections 2018.

Published in Daily Times, July 25^th 2018.