Cement, steel sectors push KSE-100 to record high after 870-point gain

Cement and steel sectors led the rally at the Pakistan Stock Exchange (PSX) on Wednesday as the benchmark KSE-100 ended at yet another record high, settling at 67,756 after a gain of nearly 900 points.

A slightly lower inflation reading has rekindled hopes that the central bank would start its monetary easing cycle, and with progress on government’s plan to privatise State-Owned Enterprises (SOEs) the KSE-100 has hit record highs in recent sessions.

At close, the benchmark index settled at 67,756.03, an increase of 869.77 points or 1.30%.

Buying was especially profound in index-heavy cement and steel sectors. It was reported on Tuesday that cement dispatches were higher in March with exports recording a noticeable increase.

“Confidence (is) further improving after good progress on privatisation along with foreign portfolio investment in government papers,” said Mohammed Sohail, CEO of brokerage house Topline Securities, in a note during intra-day trading.

“Cements stocks are (also) in limelight amid expectations of rate cut in coming months,” he added.

Meanwhile, in a key development, the Privatisation Commission on Tuesday invited expressions of interest (EOIs) for divestment of Pakistan International Airlines Corporation Limited (PIACL) through privatisation.

Interested parties that are companies, firms, body corporate or other legal entities (and not individuals or the federal or provincial government or any enterprise owned or controlled by the federal or provincial governments) can submit EOIs by May 03, 2024.

However, the share price of PIAC closed lower as investors weighed options after a massive rally in the company over the past several weeks.

On Tuesday, the PSX’s benchmark KSE-100 closed a range-bound session on a positive note to settle at 66,886.26, up by 89.94 points or 0.13%.

Globally, Asian shares tracked Wall Street lower on Wednesday as US yields held near four-month highs, while a powerful earthquake in the region raised concerns about possible disruptions to the vital chip-making industry.

Markets are also pondering the risk of slower rate cuts ahead of US data and an appearance by the world’s most powerful central banker later in the day.

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.7%. Japan’s Nikkei dropped 1%, after a 20% blockbuster rally in the first quarter.

Meanwhile, the Pakistani rupee recorded a marginal loss, depreciating 0.03% against the US dollar in the inter-bank market on Wednesday. At close, the local unit settled at 277.92, down by Re0.08 against the greenback, as per the State Bank of Pakistan (SBP).

Volume on the all-share index marginally increased to 361.82 million from 239.65 million a session ago.

The value of shares increased to Rs11.9 billion from Rs8.9 billion in the previous session.

PIAC was the volume leader with 38.24 million shares, followed by Flying Cement with 21.46 million shares, and WorldCall Telecom with 20.98 million shares.

Shares of 340 companies were traded on Wednesday, of which 208 registered an increase, 108 recorded a fall, while 24 remained unchanged.