Higher GDP growth forecast brings bulls back to KSE
karachi Rally in oil stocks following rising international oil prices helped KSE to post 0.91pc or 306 points gain on Wednesday. The benchmark KSE-100 index closed at 33,839 points with rising volumes of 215m shares worth of Rs.11.9b compared to 173m shares of value Rs.10.5b from yesterday. OGDC, POL rallied 5pc each while PPL rose by 3pc. They contributed 193 points to total index gain of 306 points. Institutional interest helped PTC to rally 5pc with 9.5m shares traded value of Rs.208m. Interest in auto sector was seen as investors are expecting robust car sales growth for April. PSMC and HCAR both closed above 1pc. Analyst Ahsan Mehanti stated, stocks closed higher amid bullish rally in oil scrips after Brent crude prices hit 2005 highs near to $68/barrel. Concerns for rising power sector receivables, political uncertainty impacted sentiments amid post earnings consolidation. S&P revision on credit ratings outlook to positive and forecast higher GDP growth played a catalyst role in bullish activity at KSE. After a strong recovery in global oil prices with WTI and Brent trading at $61.93/bl and $68.99/bl, respectively, Oil & Gas sector remained strong with PSO, POL, PPL and SHEL all ending 2pc, 5pc, 3.5pc and 3pc higher, respectively. After the recent financial announcement of BYCO posting profits after a long time, the script rallied ending near its upper-circuit (Rs12.42). Profit taking continued in the cement sector as DGKC, MLCF and FCCL ended 0.8pc, 1.5pc and 0.4pc lower through the day’s trade. However, a discount rate cut may provide a buying opportunity in cement sector while bears may dominate the banking sector, observed analyst at JS Global.