KARACHI: Stocks extended the gains on Wednesday with the addition of 356.19 points (1.06 per cent) in the KSE-100 index which closed at 33,830.36.
The two-day rally resulted in complete recovery of 2.68pc plunge noted on the first day of the week.
Investors’ interest received a boost as the Asian stocks rallied on Wednesday, led by the steep climb of 7.7pc in Japan’s Nikkei Stock Average, the biggest daily percentage gain in almost seven years. This was amid optimism that China would support its flagging economy and chances that the US Fed will delay its decision on interest rates hike.
“It helped trigger a squeeze on short positions in those markets,” analysts said.
Volume stood at 195 million shares down from 292m shares, and the value also declined to Rs8.5 billion from Rs13.1bn a day ago.
Analyst Ahsan Mehanti at Arif Habib Corp stated that the second- and third-tier stocks led the rally on falling leverage costs and speculations ahead of SBP policy announcements.
Robust cement despatch data for Aug 2015 and the surge in WTI crude prices played a catalyst role in bullish close. Foreigners bought shares valued at $1.27m on Wednesday.
Analyst Ahmed Saeed Khan at brokerage JS Global stated that the major support came from the cement and oil sectors.
Biggest gainers in the oil sector were OGDC (3.10pc), PPL (2.87pc) and ATRL (2.59pc).
MLCF announced its FY15 results with earnings per share at Rs6.55, which was in line with market expectations.
“Following the recommendation by SECP to the government for immediate implementation of compulsory group insurance, the sector remained upbeat where the most liquid stocks AICL and EFUG closed 2.23pc and 2.43pc higher,” analyst said.