The optimistic momentum in the Karachi Stock Exchange (KSE) continued with the standard 100-index breaching the 35,000-point fence for the first time.
Stocks stretched their rally owing to the rise of oil prices in the international market, as the KSE-100 index increased more than 200 points or 0.6 per cent on Wednesday.
Furthermore, the business financial results have also begun coming in showing positive results in most cases. Both factors combined result in the high transaction action by foreign and local investors.
The KSE-100 index increased 150.20 points, or 0.43 per cent, on Tuesday to settle at an all-time high of 34,826.51 points. Overseas investors switched to the oil and gas sector with the increase in oil prices. “While the rise in international oil prices kept investors’ interest alive in the heavyweight energy stocks, cement stocks saw profit-taking after rallying in the last few sessions,” analysts said.
Analyst Ahsan Mehanti at Arif Habib Corp detected that the stocks closed on a new all-time high, led by blue chip oil stocks among sharp recovery in WTI crude oil, crossing the $51/barrel. Favorable CPI inflation data for January 2015 at 3.88pc YoY renewed hopes for payment of $550m tranche following IMF review and outlooks of key announcements on privatization of state-owned enterprises (SOEs) played a substance role in bullish activity at KSE.
