Bulls continued to dominate the stock market on Thursday as the bourse extended its rally for the third successive session that helped the benchmark index to power past 41,700 points.
The index shot up over 900 points just after the trading began as buying activity in cement and steel stocks led the gains. Market participation was the highest in more than three months as volumes grew 36% over Wednesday to 337 million shares, according to Topline Securities.
At close, the benchmark KSE 100-share Index recorded an increase of 897.69 points or 2.19% to settle at 41,795.59.
Elixir Securities’ analyst Zainul Abedin said reported institutional buying kept the momentum alive in index heavyweights with cement and steel stocks hitting their respective upper price limits.
“Besides, financial, chemical and exploration and production stocks registered a significant jump in traded volumes. A local credit rating agency upgraded long-term/short-term credit rating of Engro Polymer and Chemicals (+4.9%) to AA-/A1+ from A+/A1+,” he said.
“With index up 4.6% in two consecutive trading sessions, we recommend investors to reduce their positions on strength going forward and wait till the outcome of general elections as the current vulnerable economic position is likely to remain the centrepiece of policy-level issues for the newly elected government.”
Overall, trading volumes increased to 337.1 million shares compared with Wednesday’s tally of 247.8 million. The value of shares traded during the day was Rs13.1 billion.
Shares of 376 companies were traded. At the end of the day, 276 stocks closed higher, 83 declined while 17 remained unchanged.
K-Electric was the volume leader with 22.8 million shares, gaining Rs0.32 to close at Rs5.63. It was followed by Lotte Chemical with 21.1 million shares, gaining Rs1 to close at Rs12.87 and Pakistan International Bulk Terminal (R) with 20.4 million shares, gaining Rs0.21 to close at Rs0.71.
Foreign institutional investors were net sellers of Rs856.9 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.