KARACHI - The stock market witnessed range-bound activity on Tuesday. The benchmark KSE 100-index rallied by 130 points (0.33%) and closed at 39147.33 points.

The PSX index was led by the pharmaceutical sector that rallied as news circulated that notification for increase in prices of drugs was issued by Drug Regulation Authority (DRAP). SEARL (up 4.82%) and ABOT (2.08%) were the biggest index movers in the sector, dealers said.

Mixed sentiment prevailed in the banking sector where most banks stayed in the red zone, although UBL (up 2.06%) rallied after the announcement of its half year results which clocked in better than markets expectation. The oil sector remained under pressure on the back of declining global crude oil prices. On the other hand, positivity was seen in the OMC sector as PSO and Shell rallied 1.53% and 3.33% respectively, observed analyst Ahmed Saeed Khan at JS Global.

Volumes increased by 19.4% to 197m shares while value also increased by 17.5% to Rs 11.4b/$108m.

UBL announced above expected result with EPS of 5.7/share along with Rs 3 cash dividend which led the stock to gain by 2%. HCAR also announced its EPS of 7.4/share. Stock declined by 1.3% even though result was above market consensus.

DRAP announced to increase drug prices which led interest in pharmaceutical companies. SEARL closed at its upper limit of 5% where as GLAXO and ABOT gained 2%- 2.5%, said dealers at Topline brokerage.