KARACHI - Global markets recovered on Wednesday after decline caused by Brexit, which helped Pakistan Stock Exchange to rally by 709.94 points (1.91%). The 100-share index closed at 37786.57 points.

Expectations of negative economic impact from Brexit subsided as markets across the globe recovered, analysts said. Positivity prevailed in yesterday’s session as the market followed the bullish trend in regional markets, brokers said.

Investor interest was seen in cement sector on the back of the news that cement companies have increased prices by Rs35/bag to pass on increase in the Federal Excise Duty (FED) mechanism from five percent of MRP to Rs1/kg in the recent budget announcement. Major gainers of the aforementioned sector were LUCK (4.03%) and PIOC (4.33%). OGDC (2.25%), POL (2.10%) and PPL (1.84%) in the E&P sector gained to close in the green zone, as crude oil prices continued its upward trajectory to trade above $48/bbl level, said analyst Arhum Ghous at JS Global.

Traded volume fell by 15% to 134.3m shares, whereas traded value increased 16% to Rs8.1b/$77.0m.  K-Electric (KEL), TRG Pak (TRG) and Sui Northern Gas Pipelines (SNGP) were volume leaders with combined volume of 32m shares traded, and TRG and SNGP closing at their upper limit.

Cement stocks continued to climb after announcement of increase in cement prices by Rs35/bag. D.G. Khan Cement (DGKC), Maple Leaf Cement (MLCF) and Lucky Cement (LUCK) gained 3.2% - 4.0%. Brokers expect the market activity to remain correlated with the trend in global equity markets.