Bull-run continues as PSX index gains 591 points

Author: Faraz Saeed

Stock Market continued to rally north bound on the second trading day amid strong market sentiment.

The KSE-100 index spiraled upwards by 591.78 points to close at 31,546.61, underpinned by positive expectations from the upcoming Financial Action Task Force plenary meeting, investors’ positive outlook of policy rate cut in the upcoming monetary policy and formation of a committee consisting of representatives of brokerage houses to consider the stock market situation.

The market started off on a firm note and Bulls dominated throughout the session. The index touched its highest point which propelled to 531.846 points. Share prices rose across the board making cement and steel sectors the winners of the day. Oil sector remained steady as the global oil prices plunged by 1.5% amid US president Trump indicated his readiness to meet his Iranian counterpart.

In the prevailing macro environment, market is providing choices in higher dividend yielding stocks mainly from exploration & production sector. Pakistan Petroleum Ltd (PPL) , Oil and Gas Development Company (OGDC) Mari Petroleum and Pakistan Oilfields Ltd (POL)are potential high performing shares.

The KMI-30 Index gathered 1,019.22 points to end at 49,462.26, while the KSE All Share Index appreciated by 321.23 points, closing the session at 23,050.83. Of 346 active scripts, 142 advanced, 184 retreated, and 20 did not budge at all.

The overall volumes increased by 86pc to 185.84 million. WorldCall Telecom (WTL +15.29pc), K-Electric Limited (KEL +4.91pc) and Maple Leaf Cement Factory Limited (MLCF +2.55pc) remained the top picks of the day. The scripts had exchanged 18.33 million shares, 11.77 million shares and 11.06 million shares respectively.

The banking sector (+179.10 points), fertilizer sector (+110.81 points) and cement sector (+75.45 points) helped the KSE-100 Index stay in the green zone. Among the companies Lucky Cement Limited (LUCK +47.92 points), Bank AL Habib Limited (BAHL +49.49 points) and Fauji Fertilizer Company Limited (FFCL +41.83 points) remained the top contributors to the index.

Hub Power Company Limited (HUBC +1.71pc) declared its financial results for FY19. The company’s revenue declined by 53pc, finance cost surged by 121pc, while earnings per share declined from Rs7.15 in FY18 to Rs6.70 in FY19.

Similarly, the EPS of Amreli Steels Limited (ASTL +5.91pc) dropped by 98pc, from Rs5.34 in FY18 to Rs0.11 in FY19.

Meanwhile, Good Luck Industries Limited (GIL -1.95pc), in its financials for FY19, announced a final cash dividend of Rs3.35. The company’s sales inched up by 6pc, while EPS increased from Rs8.25 in FY18 to Rs13.72 in FY19.

The State Bank of Pakistan (SBP) is set to announce its monetary policy on Monday (Sept 16th) as last month Prime Minister Imran Khan met SBP Governor Dr Reza Baqir to deliberate upon the growing unease over adverse implications of the tightened monetary policies that had started hurting the economic activities in the country.

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