KARACHI: Stocks recovered on Wednesday in concert with the rally in the regional markets. The KSE-100 index regained 247.58 points (0.78 per cent) and closed at 32,714.60.
The regional markets seemed to have shrugged off the fear of major outflow in case Fed announced its decision to raise policy rates.
However, Intermarket Securities Director Raza Jafri asserted that the global markets had already priced in 0.25pc rate hike but any major surprise on the higher side can be very negative for the markets.
“We have been seeing significant gains in the US, European and Asian markets despite high expectations of a rate hike indicating the worst has already been incorporated,” he said.
Foreigners sold stocks worth $6.86 million. Retail favourites like SNGP, TRG, KEL, SSGC managed to contribute heavily to the day’s volume of 149m shares of Rs7.7 billion value.
“Another bullish rally was seen in PPL (5pc) as the news regarding significant gas discovery kindled investors’ interest in oil and gas exploration companies,” said dealers at Global Securities.
One significant report was regarding PSMC’s plan to introduce new models and to make hefty investment in auto sector, which supported its bullish run as the scrip closed at its upper-cap.
Major gainers were MCB (2.88pc), PPL (5pc), LUCK (2pc) and UBL (1.54pc).
Analyst Ahsan Mehnanti at Arif Habib Corp said that beside the watchful eye on the Fed, investors were also inclined to buy stocks in view of some recovery in WTI. Also, the likely release of ninth IMF tranche, renewed institutional interest in oversold oil, banking and cement stocks were major factors that led the rally.