LAHORE - The KSE 100-index of Pakistan Stock Exchange gained 1,015 points ( +2.7 percent) on Monday, the largest gain in 50 sessions (since Oct 24, 2018), closing at 38,562 points.

The positive investor sentiments were due to a $3.0b support package agreed with the United Arab Emirates to help the country with its balance of payments crisis. Furthermore, a $3.2b deferred oil facility is also expected as per leading news outlets which quoted Minister of Information Fawad Chaudhary. Moreover, Fitch Solutions in a report said it expected the State Bank of Pakistan to keep interest rates unchanged for the remainder of the FY19, which also improved investor sentiments.

With OPEC output falling by 530,000 bpd to 32.6m bpd in December, the sharpest pullback since January 2017, international oil prices bounced back in the first week of the year. Resultantly E&Ps closed in the green, led by PPL (+4.9 percent), OGDC (+4.4 percent) and POL (+2.6 percent), as the sector added 202 points to the index. Investor participation improved as traded volumes rose by 2.4x to 157mn, while traded value increased by 2.2x to US$51mn.

Experts said that the market witnessed recovery in trading session as value investors took the opportunity to buy stocks at attractive prices. Total volume was recorded at 157m shares, up 144 percent from the last session. KEL (+8.1 percent) and TRG (+4.8 percent) led the volumes with more than 30mn shares changing hands. E&P sector drove the market, cumulatively contributing +202 points to the index as crude oil prices recovered in international market.

PPL (+4.4 percent), POL (+2.7 percent) and OGDC (+3.8 percent) were the major movers of the mentioned sector. Cement sector closed higher than its previous day close as investors took the opportunity to buy stocks at attractive prices. LUCK (+4.4 percent), MLCF (+5 percent), DGKC (+3.6 percent) and PIOC (+3.6 percent) closed in the green belt. Heavy volumes were witnessed in the banking space where major gainers of the sector were UBL (+5 percent), MCB (+3.3 percent), ABL (+4.1 percent), HBL (+3.3 percent) and BAHL (+4.2 percent).