Market watch: With 755-point surge, KSE-100 powers past 39,000 barrier

Benchmark index gains 1.95% to end at 39,470.89

KARACHI: Investors resorted to heavy buying at the stock market on Friday as the KSE-100 Index soared 800 points in intra-day trading before giving up some gains.

Trading began on a positive note as the index went on a steady ascent. Activity returned to the bourse as investors picked stocks at attractive valuations, helping the index recover from its downward spiral.

Clarity on the political front and positive reports about the market performance in 2018 also helped improve the situation

At the end of trading, the benchmark KSE 100-share Index registered an increase of 755.12 points or 1.95% to settle at 39,470.89.

JS Global analyst Danish Ladhani said Pakistan equities extended their gains following the previous positive trading session. "Bulls once again dominated the market as local and foreign investors participated extensively," he said.

Active participation was witnessed in all sectors as the index closed at 39,471, up 755 points.



Impressive gains continued in steel stocks among which International Steels (+5%), Aisha Steel Mills (+6%), International Industries (+5%), Crescent Steel (+4.8%), Amreli Steels (+5%) and Mughal Iron and Steel (+5%) closed in the green.

Furthermore, heavy activity was witnessed in the cement sector where DG Khan Cement (+5%), Attock Cement (+5%), Lucky Cement (+5%), Kohat Cement (+5%) and Cherat Cement (+5%) hit their respective upper limits.

"Overall, we believe relatively healthy participation indicates institutional inflows to continue in the last days of this month," the analyst said.

"Moving forward, we advise investors to avail themselves of the opportunities in the cement, steel and gas utilities sectors."



Overall, trading volumes increased to 223 million shares compared with Thursday's tally of 179 million.

Shares of 377 companies were traded. At the end of the day, 289 stocks closed higher, 74 declined while 14 remained unchanged. The value of shares traded during the day was Rs9.2 billion.

Dewan Salman was the volume leader with 17.1 million shares, gaining Rs0.18 to close at Rs1.38. It was followed by Lotte Chemical with 15.3 million shares, gaining Rs0.68 to close at Rs6.74 and TRG Pakistan with 12.9 million shares, gaining Rs1.24 to close at Rs29.17.

Foreign institutional investors were net sellers of Rs775 million during the trading session, according to data compiled by the National Clearing Company of Pakistan.