Daily Times

Pakistan Stock Exchange (PSX) witnessed another buoyant trading session on Thursday, as benchmark Kse-100 extended its gains into third consecutive session, and crossed 41,000 index level. The index continued to rally amid recent surge in the oil prices and gained 653.49 points by the closing bell to close at 41,031.31.

The rally was extended by index heavy weight Exploration and Production sector, which was spurred by global oil price surge. Bull-run was witnessed right from the opening bell, as investors’ cherry picked E&P stocks following the rebound in the oil price. Global oil price had hit an 8-month peak early this week, following rising hopes of a possible Covid-29 vaccine, as multiple pharmaceutical companies have announced a high level of protection of a vaccine candidate.

However, selling pressure was witnessed in the midst of the session after oil prices receded, resulting in slight mid-day correction. The index, however, recovered its mid-day losses, and went uphill following fresh rally in the cement stocks. The rally in the cement stocks was led by Investors who welcomed official data revealed by Pakistan Bureau of Statistics (PBS) on Thursday, according to which export of cement witnessed an increase of 11.79 per cent during the first four months (July-Oct) of the current financial year (FY21) as compared to the corresponding period of last year. According to the details, Pakistan exported cement worth $150.544 million in July-Oct FY21 as compared to the exports of $94.409 million in July-Oct FY20.

Market sentiments were already buoyed by Central bank’s Monetary Policy Committee (MPC) decision to keep the policy rate unchanged i.e. at 7 percent, and the update on the resumption of the International Monterey Fund (IMF) program leasing a new ray of hope among the investors. State Bank of Pakistan’s (SBP) governor Raza Baaqir indicated that the technical discussions with the IMF are ongoing, and major progress has been made on key sticking points such as electricity tariffs, taxation, etc.; the timing of the same remains a key sticking point.

On Wednesday, the volume at Kse-100 index climbed from 142.91 million shares recorded in the previous session to 248.71 million shares, while the overall market volumes were recorded at around 389.2 million shares, improving from the previous session’s volumes of 241.95 million shares.

The volume chart was led Unity Foods Limited followed by TRG Pakistan Limited and Maple Leaf Cement Factory Limited. The scrips exchanged 50.02 million, 33.26 million and 29.63 million shares, respectively.

Sectors that lifted the index were Cement with 150 points, Oil & Gas Exploration Companies with 89 points, Commercial Banks with 65 points, Technology & Communication with 50 points and Power Generation & Distribution with 42 points. Among the scrips, most points added to the index was by Lucky cement Limited which contributed 38 points followed by TRG Pakistan Limited with 32 points, Pakistan Petroleum Limited with 32 points, Hub Power Company Limied with 32 points and Maple Leaf Cement Factory Limited with 30 points.

However, the sector which bucked the index was Tobacco with 2 points. While, among the scrips, most points taken off the index was by Dawood Hercules Corporation Limited which stripped the index of 5 points followed by Standard Chartered Bank (Pak) Limited with 3 points, Philip Morris (Pakistan) Limited with 2 points, United Bank Limited with 2 points and ICI Pakistan Limited with 2 points.