LAHORE - After making a low of 38,780 points, the KSE 100-index of Pakistan Stock Exchange recovered to close at 39,306.50, up by 62 points. Volumes improved slightly to stand at 121 million shares versus 92m shares traded previously.

The index is expected to re-test resistance at the 50-DMA standing at 39,387; where a break above will target 40,161. However, any downside will find support in the range of 38,780-39,110. The RSI and the Stochastic Oscillator are heading down, suggesting a negative trend ahead. Experts recommend investors to 'sell' below 38,780. The support and resistance are at 38,936 and 39,554, respectively.

Experts said that continuing declining trend, the index slipped during the trading hours to make an intraday low of -491 points. However, the market later recovered. Recovery in the market came as optimistic investors came in to accumulate positions at attractive levels. Traded volumes slightly improved by 13% DoD to 104m shares while value traded increased to $39m. Top volume stocks of the session were BOP (-1.1%), TRG (+2.8%) and KEL (-2.4%) with almost 28m shares exchanging hands. Cement sector witnessed recovery where LUCK (+1.1%), CHCC (+0.8%), PIOC (+1.0%), MLCF (+0.4%) and DGKC (+0.1%) were the major movers of the mentioned sector. Profit booking was witnessed in the E&P sector where PPL (-0.7%), POL (-0.9%) and OGDC (-0.3%) were the major losers despite crude oil edging higher in the international market.

With the possibility of GIDC resolution (50% waiver) on the cards, the fertilizer sector is expected to benefit the most. Resultantly, it was the best performing sector of the week as it added 135 points.

It was followed by the E&P and tobacco sector which added 80 points, cumulatively.