Post-election session: KSE-100 ends with 750-point gain

Benchmark index increases 1.81% to settle at 42,089.16

KARACHI: Investors reacted positively to Pakistan’s 11^th general elections as doubts over a hung parliament were put to rest, leading the KSE-100 to witness a massive rally and finish its second successive session on a positive note.

The KSE-100 index shot up from the moment trading began, powering past the 42,000 mark. Although profit-taking erased half the gains by mid-day, buying interest in index-heavy sectors meant the KSE-100 was able to finish over the 42,000 mark.

Unofficial results showed Imran Khan-led Pakistan Tehreek-e-Insaf remained in the lead by a wide margin. A strong government, signified by majority seats in the National Assembly, is widely seen by investors as a positive for Pakistan that is heading towards another bailout due to a looming balance of payments crisis. The agenda is likely to be at the forefront of economic planning for the new government.



However, investors cheered the outcome as at close on Thursday, the benchmark KSE 100-share Index recorded an increase of 749.94 points or 1.81% to settle at 42,089.16.

Elixir Securities’ analyst Murtaza Jafar said equities celebrated the 2018 election results with a strong positive opening.

“The index retreated till 41,700 by mid-day after a gap opening, however, late buying in index heavy weights E&P, cements, steel and banks pushed the index higher to close above 42,000 psychological barrier,” said Jafar.

“Optimism continued in cement stocks for the second consecutive session with Lucky Cement (LUCK PA +3.26%), Maple Leaf Cement (MLCF PA +4.4%), Fauji Cement (FCCL PA +4.74%), while DG Khan Cement (DGKC PA +5%) closed at the upper price limit.

“Similarly, International Steel (ISL PA +4.98%) and Amreli Steels (ASTL +5%) traded at their respective upper circuits. Volumes chart was dominated by the retail plays namely Bank of Punjab (BOP PA -5.83%), Pakistan International Airlines (PIAA PA +15.86%).

“The former was battered as investors showed concerns of increased scrutiny in the bank, post possible change of power in Punjab; while PIAA rallied on optimism that the PTI-led government will take steps to restructure loss making state-owned enterprises.

“With the index starting to find a sustained momentum above the former resistances at 41,900/800 levels our chartist sees further Index striving towards 42,900/ 43,000 levels,” he added.



Overall, trading volumes increased to 254 million shares compared with Tuesday’s tally of 190.85 million. The value of shares traded during the day was Rs9.2 billion.

Shares of 348 companies were traded. At the end of the day, 228 stocks closed higher, 99 declined while 21 remained unchanged.

The Bank of Punjab was the volume leader with 25 million shares, losing Rs0.73 to close at Rs11.79. It was followed by PIAC (A) with 21.5 million shares, gaining Rs0.82 to close at Rs5.99 and K-Electric Limited with 18 million shares, gaining Rs0.03 to close at Rs5.55.

Foreign institutional investors were net buyers of Rs15.8 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.