Stock market gains 585 points on FATF decision

Stock market gains 585 points on FATF decision

The Pakistan Stock Market experienced a significant boost on Monday, with the benchmark KSE-100 index soaring by 585 points. This rise is attributed to positive stock market sentiments following the Financial Action Task Force (FATF) decision and the announcement of exceptional financial results from major companies.

The KSE-100 index closed at 41,851 points, up from last Friday’s closing of 41,266 points, marking a 1.42% increase. Analysts at Topline Securities highlighted that the market’s enthusiasm stemmed from the FATF’s favorable decision, which bolstered investor confidence and catalyzed the day’s rally.

The upward momentum at stock market was further propelled by outstanding quarterly financial results from key players in the market. Lucky Cement Limited (LUCK) reported a remarkable earnings per share (EPS) of 13.45 for the first quarter of the fiscal year 2021, reflecting a 242% year-on-year increase. Similarly, Millat Tractors Limited (MTL) posted an EPS of 22.8, marking a 219% year-on-year rise, and Kohat Cement Company Limited (KOHC) announced an EPS of 2.52, up by an impressive 485% year-on-year.

Adding to the positive stock market sentiment, the Oil and Gas Regulatory Authority (OGRA) notified an increase in gas prices by up to 8%, effective from September 1, 2020. This development led to Sui Northern Gas Pipelines Limited (SNGP) closing the day with a gain of 2.77%.

The major contributors to the stock market performance were Lucky Cement Limited (LUCK), Dawood Hercules Corporation Limited (DAWH), Hub Power Company Limited (HUBC), Millat Tractors Limited (MTL), and Systems Limited (SYS), which collectively added approximately 252 points to the index.

Trading volume for the day was recorded at 486.37 million shares, representing a 2.5% decrease from the previous trading session at the stock market. However, the traded value surged by 31% to Rs. 21.48 billion, indicating a significant increase in the average share price.

Maple Leaf Cement Factory Limited (MLCF) emerged as the volume leader, with 48.5 million shares traded. It was followed by Power Cement Limited (POWER) with 38.32 million shares and Fauji Cement Company Limited (FCCL) with 30.97 million shares changing hands during the day.

Overall, the robust financial results and the positive sentiment surrounding the FATF decision provided a much-needed boost to the stock market, driving investor confidence and leading to a strong performance by the benchmark index. The market’s response underscores the importance of favorable regulatory decisions and corporate earnings in influencing investor behavior and market dynamics.