KARACHI: The stock market staged a grand rally on Wednesday where the KSE-100 index started strong and managed to break through the 34,000 resistance level soon after the opening bell.
The market was able to sustain that level for the entire trading session and settled with an addition of 421.54 points (1.25pc) at a five-month high of 34,269.28 points.
The positive momentum largely emanated from recovering oil prices as the WTI traded above $44.80/bbl, after API reported a drop in inventories of US crude, gasoline and distillates. As a result, Oil & Gas Development Company (OGDC) and Pakistan Oilfields (POL) rose by 4.8pc and 4.0pc respectively, while ATRL was up 2.88pc.
“Later during the day, the KSE-100 gained additional traction once news broke that the prime minister’s name was not present in the original Panama Papers,” said a dealer at Global Securities.
Volumes managed to maintain their high levels at 258m shares with retail favourites, SSGC (0.81pc), DFML (2.99pc) and TRG (0.74pc), registering a turnover of 27m shares, 14m shares and 13m shares, respectively.
In anticipation of asset-based return on re-gasified liquefied natural gas (RLNG), SSGC closed at its upper limit (5pc). Textile sector stocks were in the limelight on the back of increasing cotton prices and good results in the outgoing quarter.
Analyst Ahmed Saeed Khan at JS Global commented that a rally was witnessed in the cements sector on the back of news that Nepra had approved a Rs 2.83 per unit cut in power tariff, along with reports that China will give $4.1bn worth of loans under CPEC to build highways. Top performers of the sector were DGKC (1.67pc) and LUCK (1.36pc).