Staff Reporter
Karachi
Stocks were in the green on Monday with the benchmark KSE-100 index climbing 585 points, to close at 41,850 – up 1.4 per cent.
Pakistan Stock Exchange (PSX) buoyed up by cement stocks and an encouraging Financial Action Task Force (FATF) announcement on Friday. The market optimism was primarily driven by the appreciation of cement and construction-related stocks. Southern cement manufacturers’ decision to increase per bag prices by Rs10 coupled with the news on shortages in some cities have pushed up the prices of cement stocks.
On the other hand, the largest player in the cement sector, Lucky Cement Ltd, reported a higher-than-expected jump in net profits during 1QFY21 at Rs5.13 billion compared to Rs1.5bn during the same period last year. The company’s net sales increased 66 per cent year-on-year (YoY) with cement sales rising 49pc on the back of higher dispatches.
Autos and oil & gas marketing companies also gained in anticipation of stronger sales in October.
The Financial Action Task Force’s announcement on Friday when it acknowledged steps taken by authorities against money laundering and terror financing was also received well by investors who were jittery during the last week. The global anti-money laundering watchdog said Pakistan has successfully complied with 21 out of 27 points of action while urging authorities to “swiftly complete its full action plan by February 2021”.
