KARACHI - Pakistan Stock Exchange (PSX) Wednesday rallied past 40,000-point level with good volumes and healthy upside to the index. E&P stocks were triggered by increase in international crude oil price, whereas cement sector played on low PE multiples. Expectation of high cost outflow in HBL directed investors to invest in next best alternate, UBL that helped the index gain further mileage.

The benchmark 100-share index closed at 40,147 points, showing an upside of 621 points. Major contribution came from cement sector that added 142 points and oil & gas E&Ps that added 132 points, brokers said.

Pak equities soared ysterday; the market rejoiced with a ‘hail Miftah’ where  appointment of Miftah Ismail as federal minister & adviser to Prime Minister on finance, revenue and economic affairs was taken as a positive step by the government, albeit chatter of year-end window dressing also did the rounds, said Adnan Sami Sheikh at Topline Securities.

Steel & cement emerged as favorites again; with all four KSE-100 engineering stocks (ISL, INIL, ASTL & CSAP) hitting their upper limits, while 6 out of 9 KSE-100 cement co’s hit their upper circuits as valuations now seemed more attractive.

Top 10 index point contributors were LUCK (up 5%), PPL (3%), OGDC (2.4%), UBL (1.7%), DGKC (5%), ENGRO (1.6%), MCB (1.2%), FFC (1.9%), SEARL (4.1%) & FCCL (5%), adding 342 points to the index.

Sector-wise, cements added 142 points, E&Ps added 132 points as int’l oil prices skirted sixty (US$/bbl), banks 81 points, fertilizers 72 points & engineering 42 points respectively to the index.

Total volumes also increased to 199m shares as compared to 178m shares of Tuesday (up 12% DoD). Average traded value also increased by 30% to reach $ 84m as compared to $ 64.7m Tuesday.

Stocks that contributed significantly to the volumes included TRG, WTL, KEL, BAFL and PAEL contributing a total of 63m shares, reflecting 32% share of total volumes.