KSE Index hits high

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KARACHI: Stocks roared higher on as Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index finished the session with a gain of 444.5 points, or 1.10 per cent, to hit an all-time high of 40,986.
The index even breached the 41,000-point barrier during the day as banks, cements and fertilisers caught investors’ fancy.
The volume of shares traded rose 30pc over the last session (Friday) to 568 million shares while the value rose 25pc to Rs17.5 billion.
Major trading was seen in the first- and second-tier stocks, but participation was also witnessed from blue chips in most sectors as investors shook off the fear of possible escalation of a cross-border conflict between Pakistan and India which consumed much of the time previous week.
“With an electrifying start to the last quarter of 2016, the KSE-100 index resumed its northbound trajectory as the PSX heads for inclusion in emerging market space next year,” analysts at Intermarket Securities said.
The fertiliser sector staged a surprising comeback, closing with all the stocks in the green. Engro Corporation rose 2.15pc, Engro Fertiliser 1.36pc and Fatima Fertiliser 1.01pc on expectations of robust off-take from mid-October.
“The index received support from the cement sector (which rose 151.5 points) owing to the release of around Rs110bn for different social sector development projects under the Public Sector Development Programme of 2016-17, giving a boost to the construction sector,” said Abra Juma of Global Securities.
Dewan Cement hit the upper circuit after its earnings surprised the market. Other gainers on the sector included DG Khan Cement (up 2.22pc), Lucky Cement (5pc) and Maple Leaf Cement (4.88pc). Among banks, United Bank rose 2.45pc and MCB Bank gained 1.81pc.
Auto companies staged a mixed session with Pak Suzuki falling 0.27pc, Honda Atlas Cars 2.42pc and Ghandhara Industries 0.55pc on selling pressure as traders opted to book gains on trading positions.
Textiles saw a positive session with Nishat Chunian rising 1.18pc and Gul Ahmed increasing 5pc while Nishat Mills dropped 0.82pc.