KARACHI: Stocks ex­­tended gains for the third day as investors were ins­pired by the outcome of meeting between Prime Minister Imran Khan and US President Donald Trump. The KSE-100 index went up 131.33 points (0.40 per cent) and closed at 32,715.88.

All eyes were focused on the premier’s visit to the US. Government sources were jubilant over what they believed to be conclusion of successful talks between the US and Pakistan as the American administration was supportive over the beginning of new bilateral relationship.

President Trump’s reported offer to mediate between Pakistan and India on the key Kashmir issue and seeking Islamabad’s help in facilitating talks between Washington and Afghan Taliban were taken as key encouraging events. Moreover, US president also talked about increasing trade activity with Pakistan which could lead to improved trade balance between the two countries.

The market opened slightly positive with the index up 12 points but the selling pressure soon drove the index down to intraday low by 130 points on profit-taking, investors’ worries over the weak economic outlook and the implementation of the measures outlined in the International Monetary Fund package.

But bulls stole the show with last hour buying. National Clearing Company data showed buying of stocks worth $1.37 million by foreign investors and selling of shares valued at $2.25m by mutual funds.

Sector-wise, cement and steel saw better price performance and stocks like DG Khan, Maple Leaf Cement, and International Steels were seen trading at upper circuits. Much of this activity was attributed to short covering by investors who have been selling on anticipation of poor quarterly results.

Among scrips, the index received major support from Fauji Fertiliser, up 1.82pc, Engro Fertiliser 1.67pc, Fauji Cement 4.59pc, DG Khan Cement 4.92pc, Lucky Cement 0.75pc, Habib Bank 0.70pc, United Bank 0.72pc, Bank Al Habib 0.60pc, Pakistan Petroleum 0.64pc and Pakistan Oilfields 0.59pc.

Published in Dawn, July 24th, 2019