KARACHI: The stock market extended gains on the last trading day of the week as investors took heart and were encouraged by subtle gestures of decreasing Pak-India hostilities. The KSE-100 index gained 484.41 points (1.30 per cent) to close at 39,539.02.

Investors who worried over missing out the opportunity to buy stocks at attractive prices went for cautious buying. On the news front, Pakistan set free a captured Indian pilot and handed him over in a gesture for peace to lower the temperatures.

However, figures released by the National Clearing Company of Pakistan showed that all participants did not think it prudent to carry positions over an uncertain weekend. Banks and mutual funds reduced their exposure, individuals remained disinterested while foreign investors sold $2.46 million worth stocks. Insurance companies mopped up all the liquidity with net purchases of $3.93m.

The market started out on a firm footing and with sizeable buying in blue-chip scrips, it touched intraday high by 659 points. The volume declined 14pc to 137m shares, from 159m while average traded value amounted to Rs7.38 billion, from a Rs3.39bn day earlier. Stocks that contributed significantly included Bank of Punjab, Oil and Gas Development Company, K-Electric, Pak Elektron and Pakistan International Bulk Terminal, which formed 21pc of total volume.

Sectors contributing to the index upside came from banks, higher by 175 points, exploration and production 93 points, fertiliser 56 points, oil and gas marketing companies 29 points and miscellaneous 25 points.

Scrip-wise, major gainers were Habib Bank, up 3.12pc, Oil and Gas Development Company 2.74pc, Bank Al Habib 3.61pc, Dawood Hercules 4.61pc and United Bank 2.47pc, adding 236 points. On the flip side, EFU General shed 3.87pc.

On technical charts, initial support was thought to be near 39,300-level. A break below that could drag the index towards 38,700. On the other hand, the index could face resistance near 39,700 while a break above could lead it towards 40,300.

Published in Dawn, March 2nd, 2019