KARACHI -  Bulls returned to the Pakistan Stock Exchange (PSX) on Wednesday as the KSE 100-index went up by 836 points and closed at 40,453 points.

Market witnessed recovery in yesterday's trading session as value investors availed the opportunity to buy stocks at attractive prices. Positivity can be attributed to the PML-N heavyweights’ meeting in London, which decided to put forward Shahbaz Sharif’s name as candidate for prime minister for the 2018 elections, observed analyst at JS Global.

Investor sentiment improved taking cue from news flow apparently indicating a change in stance in PML-N strategy to avoid confrontation with state institutions and nominating Shahbaz Sharif (ex-Prime Minister brother and Chief Minister Punjab) its future PM candidate. Also, market participants took positively to announcement of (possible) election date by ECP.

Oil and gas exploration companies remained in limelight as WTI crude oil price made a intra-day high of $55 on back of a Reuters investors survey indicating that top oil exporter Saudi Arabia will hike December crude prices for customers in Asia to levels last seen in 2013 and 2014 . To note oil is flirting with $55 level, after two years, stated dealer at Topline Securities. Increase in heavy weight stocks including HBL (up 2.21%), OGDC (3.61%), PPL (3.52%) and UBL (1.50%) steered the market upward.

Top 5 index point contributors were OGDC (up 3.6%), PPL (3.5%), MCB (3.6%), HBL (2.2%) & POL (4%), adding 298 points, while top 5 index laggards were PAKT (down 4.9%), COLG (4.1%), ABOT (1.3%), PAEL (0.5%) & IGIIL (0.6%), withholding 35 points.   Stocks showed strong recovery on institutional interest in oversold scrips across the board on strong valuation, said analyst Ahsan Mehanti.

Oil and power sector stocks outperformed amid surging global crude oil prices on likely extension on OPEC output cut, revision in local POL prices and London Court award of Rs14 billion to few IPPS listed on PSX in dispute with NTDC, he added.

Volumes were down 16% d/d at 117m shares, while value traded declined 26% at Rs7b/$65m.