Market watch: KSE-100 soars over 500 points as buying continues

Benchmark index increases 1.22% to settle at 41,614.39

KARACHI: Bulls dominated the Pakistan Stock Exchange for the third successive session on Monday as investors continued to accumulate stocks.

The KSE-100 index shot up from the moment trading began, gaining over 500 points. Positive sentiment prevailed on the back of planned visit by Saudi Crown Prince Mohammad bin Salman, which kept investor interest alive.

Moreover, participants were enthusiastic over news of $2.5 billion worth of deposit by China in the State Bank of Pakistan. The move would bolster the country's fast-depleting foreign exchange reserves.

At the end of trading, the benchmark KSE 100-share Index recorded an increase of 501.68 points, or 1.22%, to settle at 41,614.39.

Elixir Securities' analyst Murtaza Jafar said the benchmark KSE-100 index started the week on a buoyant note, settling marginally above the key barrier of 41,600.

"The gains were mainly led by aggressive buying in cement with DG Khan Cement (+5%), Maple Leaf Cement (+5%) and Lucky Cement (+4.7%) trading at their upper circuits on the back of decline in international coal prices and value hunting after the sector's below-par performance," said Jafar.



Energy stocks followed suit, tracking the international crude oil prices with Pakistan Oilfields (+2.1%), Pakistan Petroleum Limited (+1.3%) and Oil and Gas Development Company (+1.3%) collectively adding 79 points to the benchmark KSE-100 index.

"Technically speaking, a sustained progress above the 41,600 mark will unlock further upside to the levels of 42,000 and 42,200 next."

Overall, trading volumes increased to 254.1 million shares compared with Friday's tally of 228.9 million. The value of shares traded during the day was Rs9.8 billion.

Shares of 374 companies were traded. At the end of the day, 251 stocks closed higher, 105 declined and 18 remained unchanged.

The Bank of Punjab was the volume leader with 19.8 million shares, gaining Rs0.25 to close at Rs13.83. It was followed by K-Electric with 17.6 million shares, gaining Rs0.21 to close at Rs6.68 and Azgard Nine with 12 million shares, losing Rs0.08 to close at Rs15.30.

Foreign institutional investors were net sellers of Rs100.1 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.