Rally in Int’l oil prices with a quantum jump of 10pc
Karachi—KSE-100 Index bounced back to its bullish momentum with a gain of 284 points to close in green at 42,907 levels amid improved market volumes of 504 million here on Thursday. The recent move in commodity prices, a surprise major cut in domestic gas prices for industries coupled with upcoming end-Dec result season should lead to increased focus in main board, going forward and may allow index to sustain the momentum.
The Bank of Punjab retaining its position as the volume leader of the day traded 40 million shares to its credit while PACE Pakistan and K Electric were second and third volume leaders with respective trade of 20.58 million and 20.40 million shares accordingly.
Meanwhile there a sudden rally in the international oil prices which were jumped more than 10% on Wednesday as OPEC announced a deal, for the first time in eight years, to limit crude oil production by 1.2mn bpd. OPEC’s production was 33.82mn bpd Oct-16, which is expected to reduce to 32.6mnbpd after the output cut. In addition, Russia also pledged to cut its output for the first time since 2001. However, most analysts warned traders that prices could retreat as other producers stand by to fill the gap.