KARACHI

Stocks on Monday closed bullish led by second and third tier scrips in cement, fertilizer and textile sector on speculations ahead of major earnings announcements this week.

Announcement of Greece bailout package helped international and local market to recover; as a result KSE-100 Index increased by 384.33 points to close at 35496.62 points level or 1.09pc.

Today’s session was a wild ride where the index juggled in between 550 points and eventually closed in green zone. Following a nose dive in global oil prices, the oil sector remained depressed, with the exception of ATRL that rallied on the expectation of improved Asphalt production and sale. Major laggards of the sector were POL decline 1.45, APL 1.41pc and PSO 0.90pc respectively. As the auto sales number show growth of 47pc YoY for automobile manufacturers and 131pc YoY growth of tractor manufacturers, the auto sector remained strong, PSMC rose 1.03pc and AGTL 3.33pc were the top performers for the day.

In anticipation of higher than predicted dispatches and continuously rising local demand, the cement sector remained upbeat. Following contract between FL Smidth and DGKC up 3.52pc, the scrip rallied and was the top performer in the sector. Fertilizer sector also extended gains closing all major scrips positively; FFBL hit its upper circuit in the first hour of trading.

FFC, EFERT and Fatima closed 2.95pc, 2.15pc and 0.99pc higher respectively, commented analyst Ahmed Saeed Khan.

Traded volume increased by 9pc to 345m shares, while traded value improved by 21pc to Rs13.1b/ $128m.

Analysts at sales desk Topline brokerage stated, renewed interest was witnessed in index heavy weight stock like, LUCK, Engro, FFC and UBL which contributed 210.11 points to Index gain.

In anticipation on better corporate results of cement and chemical sector, Engro and FFBL closed at their upper limit while FF, DGKC, LUCK and MLCF rallied 2.93pc, 4.49pc, 4.92pc and 2.76pc respectively. Major volume leaders were PACE, ANL, JSCL and GAIL with traded volume 46m shares, 26m shares, 19m shares and 17m shares respectively.

Analyst Ahsan Mehanti observed strong earnings outlook in fertilizer and cement sector, robust auto sales, cement & fertilizers data for Jul-June’15 played a catalyst role in bullish sentiments at KSE amid concerns for fall in global crude prices impacting earnings outlook in oil sector.