Karachi: Pakistan’s stock market turned positive as global and regional markets recorded an improvement in the hope of economic recovery. Oil prices in global markets hit 13 months high that fueled rally in energy and oil shares.
The Karachi Share Index (KSE-100) gained 567.23 points (1.24 per cent) after closing at 46,375.59 points against the previous closing of 45,808.36 points. The market went as high as 46,507.41 points during intra-day trading, while recorded as low as 45,808.36 points.
Trading volume increased to 486.3 million shares today as compared to 442.7 million traded in the previous session, according to PSX website data. The daily traded value increased to Rs 24.8 billion from Rs 20.9 billion in the previous session, the data said.
The room was created due to a week-long correction last week while adjustment in portfolio investments supported the recovery of the market today, analysts and traders said. However, the fast increases always demand corrections that can either be during intra-day or in upcoming sessions, they added.
Oil prices on Monday jumped to their highest level in 13 months with increasing hopes of a speedier oil demand recovery, with rising tensions in the Middle East and optimism over the $1.9 trillion US stimulus check.
International benchmark Brent crude was trading at $63.51 per barrel at 0702 GMT with a 1.72% increase after closing Friday at $62.43 a barrel. This is the highest price since Jan. 22 when it was trading at $64.58.
Reaching its highest level since Jan. 8 when it traded at $65.65, American benchmark West Texas Intermediate (WTI) increased by 2.15% to $60.75 per barrel at the same time relative to end-of-day trading at $59.47 a barrel during the previous session.
Oil prices have long been supported by vaccine developments in the hope of a demand rebound. Saudi Arabia’s massive production cut pledge on the back of OPEC+ cuts offers a further stimulus to exert upward oil price pressure as investors hope for a drawdown in the supply glut due to the pandemic.
Investors seem optimistic about the recovery of global economic activities and positive impact on the local economy. The State Bank of Pakistan said today that the remittances received from overseas-Pakistani workers exceeded $2 billion for the eighth consecutive month in January, which saw a total of $2.3 billion sent in remittances. The figure had an increase of 19% from a year earlier, the central bank stated.
The share price of Bata Pakistan increased by Rs 90.40 to Rs 1,769.80 while Sapphire Textile gained Rs 60.33 to Rs 989. On the other hand, Indus Dyeing lost Rs 28.90 today to close at Rs 611 while Colgate Palmolive lost Rs 25.99 to close at Rs 2,800.01.