Bulls held sway at the Pakistan Stock Exchange on Wednesday and tossed the KSE-100 index above the 46,000-point barrier after a dip in global crude oil prices aided investor sentiment.
The fall in crude prices addressed fears of a significant jump in imported inflation in Pakistan and encouraged market participants to make fresh stock buying.
Fuelling the rally, a spike in textile exports coupled with robust projection sparked cherry-picking of stocks and propelled the market higher.
Index-heavy automobile, cement, fertiliser and exploration and production sectors were in the limelight, ending the session with modest gains.
Earlier, trading began on a positive note and the KSE-100 index climbed steadily throughout the day. Strong investor spirits, stemming from multiple positive triggers, kept trading in the positive zone until close.
At close, the benchmark KSE-100 index recorded an increase of 391.81 points, or 0.85%, to settle at 46,339.76.
A report of Arif Habib Limited stated that the bourse witnessed a bullish momentum as Brent and WTI crude benchmarks dropped from seven-year highs.
Oil slid more than 2% from the recent seven-year highs as the resumption of indirect talks between the United States and Iran could revive an international nuclear agreement and allow more oil exports by the OPEC producer.
“Cement sector stayed under pressure due to higher international coal prices,” it pointed out.
In the banking sector, Bank AL Habib was in the limelight as it announced tremendous financial results, beating market expectations.
“The psychological level of 46,000 was finally digested by investors as across-the-board buying was observed in the last trading hour, which led the index to close in the green zone,” the report said.
JS Global analyst Waqar Iqbal said that the stock market opened with a positive momentum on the back of correction in international oil prices, while better financial results posted by companies provided further support.
The KSE-100 index closed at 46,340, gaining 392 points day-on-day. Volume leaders were Treet Corp (+3.7%), K-Electric (+0.9%), Hum Network (+0.1%), WorldCall Telecom (+0.5%) and Engro Polymer and Chemicals (+20%).
“Going forward, we see the market performing better with incremental volumes,” the analyst said.
Overall trading volumes increased to 243.1 million shares compared with Tuesday’s tally of 187.4 million. The value of shares traded during the day was Rs9.9 billion.
Shares of 368 companies were traded. At the end of the day, 242 stocks closed higher, 103 declined and 23 remained unchanged.
Treet Corp was the volume leader with 16.8 million shares, gaining Rs1.5 to close at Rs41.53. It was followed by K-Electric with 13.8 million shares, gaining Rs0.03 to close at Rs3.38 and Hum Network with 12.5 million shares, gaining Rs0.01 to close at Rs7.78.
Foreign institutional investors were net sellers of Rs276.95 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.
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