PSX was straight up today with very low volatility. KSE 100 Index closed at 43,854 up 1.88% adding 811 points. Market paid no heed to increasing rates in money market or political uncertainty. Trade data at the day end does not show substantial buying from any quarter. In fact 'foreigners' were net sellers of over $2.2mn - slightly higher than recent average.
KMI30 was ended up 2.56% gaining 1754 points closing at 71,151. A number of Mutual Funds that only invest in companies that are compliant to a certain shariah Board are benchmarked to KMI30. Mutual Funds were just marginally net buyers today however. The substantial gain in KMI30 is probably indicates end of selling spree by Funds.
Cement sector, where stock prices have reached a very low level, came for strong demand. The market capitalization of Cement Sector gained more than 5% today. This sector has seen intense selling pressure lately on increasing energy prices. Recent rise in retail price of Cement in the North region may be trigger for todays rally in this sector. Despite increasing prices of construction material the that demand for cement has not come down. This despite the fact no major project (Dams etc) has been launched recently. The strength of Cement demand is from an average consumer. This wide spread solid demand base is sustaining Cement sector despite substantial increase in installed capacity.
Systems Ltd (SYS) closed at upper limit after the company announced 100% stock dividend together with Rs. 5/- cash dividend in annual financial results. EPS at Rs 32.4 was above expectations.
Foreign remittances for last month were $2.19bn as per State Bank of Pakistan showing 3% decline yoy but 2% gain since last month. Foreign remittances trend remains strong.