PSX gains 514 points on back of positive oil prices

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Benchmark KSE-100 index closed in the green to reach 40,378 points
TLTP
KARACHI
The Pakistan Stock Exchange (PSX) continued to gain on Wednesday posting a second positive close and the benchmark KSE-100 index closed 514 points (+1.29 percent) in the green to reach 40,378 points.
The KSE-100 Index remained in the positive zone throughout the day, registering its intraday high at 40,431.56 after gaining 568.20 points. It ended higher by 514.17 points at 40,377.53.
Among other indices, the KMI-30 Index accumulated 1,477.39 points to close at 65,003.77, while the KSE All Share Index gathered 386.86 points, settling at 28,445.86.
The index took off to a robust start and technical support at 40,000 could be witnessed during trading for the rest of the session. After range bound trading for most of the trading session, an upward rally was witnessed near the end to allow the index to close over 500 points in the positive. Volume at the exchange also displayed a healthy increase.
Gains at the exchange were seen to be in line with larger global sentiment as financial markets across the globe continue to flourish on vaccine news. Furthermore, stability in oil prices allowed index heavy weight scrips in the oil and exploration sector to perform well. This provided additional support to the KSE100 index.
Equity markets across the globe continued their upward momentum as the smooth handover of power in the U.S. and positive news on the COVID-19 market provided stability. Markets across the globe reached record highs with the Nikkei in Japan rising to a 29-year high.
The overall volumes at PSX increased from 174.70 million shares in the previous session to 213.11 million shares (+22 percent). Average traded value also surged by 42 percent, from $42.6 million to $60.7 million. Fauji Fertilizer Bin Qasim Ltd Right shares (FFBLR -12.97 percent), TRG Pakistan Ltd (UNITY +6.16 percent) and Unity Foods Ltd (UNITY -1.65 percent) led the volume chart, exchanging 28.57 million, 21.16 million and 20.84 million shares, respectively.
Sectors that painted the benchmark index green included oil & gas exploration (+272.33 points), banking (+88.70 points) and technology & communication (+81.16 points). Among the companies, Pak Petroleum Ltd (PPL +91.21 points), Oil and Gas Development Company Ltd (OGDC +86.22 points) and Pakistan Oilfields Ltd (POL +63.95 points) remained the top contributors.
Adding 6.18 percent to its total market capitalisation, the oil & gas exploration sector ended as the session’s top performer, with OGDC (+6.56 percent), MARI (+3.60 percent), POL (+6.15 percent) and PPL (+7.50 percent) posting significant gains.
According to a report issued by Arif Habib Ltd, the exploration & production (E&P) stocks drove the market, contributing heavily to the surge in the index. Crude oil prices increased significantly overnight and maintained the momentum during today’s session as well, which particularly helped those investors who were concerned with the decline in cement despatches to switch to better alternatives. Banks, textile and fertilizer sectors also contributed to the overall positivity, said the report.