Stocks extend rally, KSE-100 closes 591 points higher

Investors remain optimistic about FATF review, monetary policy announcement

KARACHI: Bulls dominated the Pakistan Stock Exchange (PSX) for the second consecutive session of the week, as the indices extended gains from the preceding session amid increased market participation.

According to analysts, the recently-conducted Asia Pacific Group’s meeting in Bangkok gave positive signals to the market that up till now, Pakistani government’s efforts were moving in the right direction and its plans to counter and curb money laundering had proved fruitful.

Another soothing factor for the market is the monetary stance, which is seen to maintain a status quo as the interest rate has now peaked off. The speculations over a softening or maintenance of monetary policy stance by the State Bank of Pakistan gained momentum after a change of weights in consumer price index (CPI) calculation mechanism that led to an ease in inflation figures.

“The stock market made appreciable gains on a rise in crude oil prices, which helped rally local oil and exploration stocks, while with heavy weightage in the index, oil and gas stocks helped boost share prices,” Salman Ahmad, head of institutional sales at Aba Ali Habib Securities, said.

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Accumulating 891.85 points, the KSE-100 Index marked its intraday high of 31,846.68. The index settled higher by 591.78 points at 31,546.61. 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, Bank AL Habib Limited (BAHL +49.49 points), Lucky Cement Limited (LUCK +47.92 points) and Fauji Fertilizer Company Limited (LUCK +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.

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