Cement stocks lift PSX out of four-session slump

The Pakistan Stock Exchange (PSX) snapped a four-day losing streak on Friday, staging a strong recovery as institutional investors engaged in value-hunting despite widespread flooding in Punjab that threatened standing crops and the farm sector. The benchmark KSE-100 index gained 1,274 points, or 0.86 per cent, to close at 148,618. According to Topline Securities, the rally was driven mainly by institutional buying following pressure from futures rollover and ahead of the August inflation data. Ahsan Mehanti of Arif Habib Corporation said the bullish close was supported by rupee appreciation, rising foreign exchange reserves of the State Bank of Pakistan, and government deliberations on resolving the circular debt issue. The cement sector led the recovery, driven by expectations of higher despatches for August, contributing 555 points to the index. Key gainers included DG Khan Cement, Lucky Cement, Fauji Cement, Maple Leaf Cement, and Cherat Cement.