KARACHI - Stocks on Thursday closed bullish led by second and third tier scrips in cement and power sector on strong valuations.

The benchmark KSE-100 index increased by 193 points or 0.56pc to close at 34,674.61 points.

Interest was seen in index heavy weight stock including OGDC and MCB contributed 80 points to total gain.

Expectations of better dividend in June results of IPPs (Independent Power Producer) led to investors’ interest in IPPs as stocks rallied by 0.2pc to 5pc, observed Samar Iqbal at Topline Securities.

Renewed interest was seen in banking sector. Major activity in banking stocks was confined to big banks like MCB (up by 3.3pc), HBL and UBL up by 1pc.

Mid tier stocks remained in the lime light like: KEL 48m shares traded, DCL 40m shares traded and DSFL traded volume was 23m shares. Traded volumes 450m shares and value of Rs.13.4b/ $131m were 16pc and 12pc down respectively.

Ahsan Mehanti at Arif Habib Corp stated strong earnings outlook in fertilizer sector and institutional support in selected banking stocks after Moody's upgrade on deposit ratings of 5 Pakistan banks played a catalyst role in positive sentiments ignoring dismal $2b current account deficit data for Jul-May'15.

Positivity was witnessed across all sectors alike. Amongst significant news, banking sector depicted growth of 58pc over the same quarter last year. This translated into a bullish momentum in the banking sector as AKBL, BAFL, BAHL, MCB and UBL all ended 2.3pc, 2.4pc, 1.5pc, 2.4pc and 1.1pc higher. Cement sector also remained strong with healthy volumes. As ECC increased import duty on sugar to 40pc from 20pc, local manufacturers remained bullish across the board with almost all scripts registering healthy gains. With oil prices stabilising, Oil & Gas sector remained largely under pressure, commented Ahmed Saeed Khan at JS Global.