karachi
Karachi Stock Exchange Wednesday rallied by 1.2pc adding 371 points to close at 30,605 points level. Institutional support helped KSE-100 gained 5.8pc in last 2 sessions after a sharp fall of 3.4pc on Monday, recording week to date gain at 2.3pc. The 11-year low CPI of 2.49pc also strengthened investors’ sentiments.
Total volumes traded declined by 6pc to 245m shares, while value improved by 33pc to Rs15b/ $152m.
Institutional support in cement and banking sectors was seen. MLCF closed at its 5pc upper limit, whereas Lucky and DGKC were up by 4pc and 1.5pc respectively. Leading banks MCB, NBP, HBL and HMB closed at their 5pc upper limit.
The volatility witnessed in the market which rallied by 717 points after an initial low of 210 points and eventually ended up by 371 points, substantially lower than its mid-day high.  In general, investors expressed a bullish momentum largely due to the positive expectation of CPI numbers which clocked in at 2.49pc, beating the industry expectation of 2.7pc. This creates a rationale for a further discount rate cut with leveraged scripts being its potential beneficiaries. Cements rallied as MLCF, CHCC and FECTC all hit their upper circuit. In the second half of the market, profit-taking was witnessed as the market shed approximately 300 points, stated analyst Arhum Ghous at JS Global.
Stocks closed bullish on speculations ahead of quarter end results due next week, market watchers said.
Activity was led by cement, fertilizer and banking stocks on strong valuations. Revision in local petroleum prices and improving economic indicators played a catalyst role in bullish activity at KSE despite late session pressure on falling global commodities prices.