KARACHI: As the dust of uncertainty settled and the Fed announced increase in rates by 25 basis points, shares at the local bourse rallied in line with global equity markets. The KSE-100 index galvanised by 394.94 points (1.21 per cent) on Thursday and closed at 33,109.54.
Volume decreased by 4.6pc to 142.2 million shares, while value increased by 28.6pc to Rs9.9 billion as big cap stocks changed hands.
However, dearth of market participants willing to go long in the market was eventually thought to take its toll on the current rally.
Foreigners continued to take profit with sale of $4.98m worth equity.
Intermarket Securities Director Raza Jafri stated: “With only 8 more session to go before the close of 2015, Fed presented global investors with a perfect parting away gift for this year — a solid rally was likely to help post positive returns before holiday season kicks in, at least that could be true for our index if not for other regional peers like Sri Lanka and India”.
After heavy battering in the previous several sessions, the E&P companies have turned bullish in the last two sessions on the back of attractive valuations. PPL (up 5pc) continued its upper cap spree for a third consecutive day. Other major gainers were HBL (2pc), OGDC (4pc), PSO (3pc), DAWH (3pc) and ENGRO (1.5pc).
Analyst Ahsan Mehanti at Arif Habib Corp commented that the Fed decision for historical raise in interest rates was seen as a vote of confidence for equities, ignoring overnight fall in US crude prices and foreign outflow data and prevailing political uncertainty.
Institutional interest was noted in oversold oil, fertiliser and cement stocks.