Bullish sentiment prevails at PSX

Market watch:

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KARACHI
Bullish sentiments prevailed at the Pakistan Stock Exchange on Monday as the benchmark index gained amid a surge in global equities and institutional interest in cash-rich stocks.
Investors reacted positively to the central bank’s monetary policy announcement, which left the policy rate unchanged at 13.25%.
Following a positive open, the KSE-100 index briefly fell into the red zone in early hours of trading. However, the recovery was quick with the index managing to surge past 38,200 on the back of buying interest.
At close, the benchmark KSE 100-share Index recorded an increase of 286.49 points, or 0.76%, to settle at 38,212.28.
JS Global analyst Maaz Mulla said bulls dominated the KSE-100 index yet again with the index touching intra-day high of 367 points and closed at 38,212.
“On the news front, a multi-party conference has been called by the JUI-F to decide on the next course of action in the anti-government campaign by the opposition,” he pointed out.
A rally was witnessed in cement and banking sectors where Cherat Cement (+5%), Pioneer Cement (+4.9%), Lucky Cement (+4.1%), DG Khan Cement (+2.7%), NBP (+2.5%), MCB Bank (+2.2%), HBL (+1.2%) and UBL (+1.2%) were major gainers of the day.
An upward movement was seen in the auto sector as well where most of the stocks closed higher. Pak Suzuki Motor Company (+5%), Honda Atlas Cars (+5%) and Ghandhara Industries (+4.5%) were among the best performing stocks.
“Moving forward, we expect the market to remain positive, however, we recommend investors to book profit on strength,” Mulla said.
Aba Ali Habib Securities, in its report, said bulls remained in control throughout the trading session as the benchmark index jumped 286 points to close above 38,000.
“Positive sentiment prevailed as the central bank left the interest rate unchanged at 13.25%, consistent with market expectation, however, the dovish language of monetary statement hints at reversal of the rate cycle, which could start at the beginning of CY20,” it added.
Investor sentiment remained neutral in leveraged sectors. Sector-wise, the cement sector remained in the limelight throughout the trading session despite negative implications of no reduction in the policy rate.
Among major cement stocks, Lucky Cement gained Rs16.51 in its share value, followed by Cherat Cement (Rs2.39), DG Khan Cement (Rs1.90), Kohat Cement (Rs1.59) and Pioneer Cement (Rs1.56).
Overall, trading volumes decreased to 241.5 million shares compared with Friday’s tally of 243 million. The value of shares traded during the day was Rs8.8 billion.
Shares of 386 companies were traded. At the end of the day, 248 stocks closed higher, 115 declined and 23 remained unchanged.
Pak Elektron was the volume leader with 19.1 million shares, gaining Rs1.14 to close at Rs24.63. It was followed by Unity Foods with 18.6 million shares, gaining Re1 to close at Rs12.09 and TRG Pakistan with 15 million shares, gaining Rs0.94 to close at Rs22.89.
Foreign institutional investors were net sellers of Rs58.6 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.

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