Daily Times

Stocks rallied on Monday on the hopes that the government will introduce fresh economic incentives in the upcoming budget. Benchmark index Kse-100 added to Friday’s gains, and rallied 399 points to clock at 34,749.57-level i.e. 1.16% higher than the previous closing.

Investors sentiments were picked up over expectations that the Government may extend fresh incentivesin the upcoming fiscal budget, for instance a proposed reduction in Value added tax (VAT) to support export industry and a possible reduction in Capital gain tax (CGT). Sentiments were also lifted after, mainly due to the ease in lockdown and opening of various businesses around the country. Cement, steel, and pharmaceutical sectors led the volumes and gains in Monday’s session.

The benchmark KSE-100 Index remained in the green zone for the most part of the session, recording its intraday high at 34,769.44 after gaining 419.01 points, and intraday low at 34,350.42.Total volume traded for the index was 144.06 million shares, while the overall market volumes jumped from 89.07 million in the previous session to 222.14 million shares.

The volume chart was led by TRG Pakistan Limited , followed by Pakistan Refinery Limited Right Shares and Hascol Petroleum Limited. The scrips exchanged 19.50 million, 18.84 million and 13.14 million shares, respectively.

Sectors that propped up the index were cement were oil & gas exploration sector with 133.06 points, Banking sector with 85.18 points and Cement sector with 52.10 points. Among the scrips, Muslim Commercial Bank Limited led the gains, contributing 52.40 points, followed by Pakistan Oilfields Limited with 51.20 points and United Bank Limited with 36.10 points. The pharmaceutical sector emerged as the top gainer of the session, with Glaxo Healthcare Pakistan GSKCH gaining 7.5%, Ferozsons Laboratories Limited gaining 7.50%, The Searle Company Limited gaining 3.34%.

Among the Sectors, the index was let down by Commercial Banks with 13 points, Automobile Assembler with 3 points, Oil & Gas Marketing Companies with 3 points, Miscellaneous with 1 point and Transport with 1 points.

Sectors that weighed down the index included Power Generation & Distribution with with17 points, Investment Banks with 13 points, Food & Personal Care Products with 3 points, Textile Spinning with 2 points and Transport with 1 points. Among the scrips, the most points taken off the index was by Hub Power Company Limited which stripped the index of 17 points followed by Bank Al Habib Limited with 14 points, Dawood Hercules Corporation Limited with 14 points, Meezan Bank Limited with 7 points.