KARACHI: Stocks forged ahead on Monday in thin trade where investors remained cautiously optimistic after the market-friendly mini-budget and heavy foreign buying of $17 million equity. The KSE-100 index gained 155.31 points (0.39 per cent) and closed at 39-session high of 40,420.09.

The market was also encouraged by the receipt of third instalment of agreed $3 billion from Saudi Arabia last week. Yet the investors were concerned over possible delays in reaching an agreement with the International Monetary Fund on a bailout package and some market participants cautioned that the new year buying was overdone as the index had already provided splendid return of 9pc in January.

Analysts also considered 40,000 a key the level to watch as a breakout could provide further gains while resistance with thin participation could pull the index down.

The volume declined 19pc to 126m shares while the traded value fell 21pc to Rs5.13bn. Stocks that contributed significantly included Pakistan International Airline at 15m shares after talks of restructuring efforts, TRG Pakistan, Fauji Fertiliser, Unity Foods and Pakistan International Bulk Terminal, together forming 31pc of total volume.

Steel, cement, banking and chemical sectors performed positive with slight price growth. Winning streak continued in autos due to favourable regulatory announcement in the Economic Reforms Package. Honda Atlas Cars and Pak Suzuki closed at their upper limit.

Selling pressure was visible in banking, whereby United Bank saw profit-taking. Refineries rallied as the government notified that a complete ban would be placed on the import of furnace oil; National Refinery, Attock Refinery and Pakistan Refinery hit their upper circuits.

Among flat steel, Inter­na­ti­onal Steels showed impr­ovement in both price and volume. Major contribution to the index upside came from Pakistan State Oil, up 2.40pc, MCB 0.75pc, Engro Corpo­ration 0.63pc, Searle Comp­any 2.60pc and Habib Bank 0.42pc, adding 70 points.

Published in Dawn, January 29th, 2019