LAHORE - The KSE-100 Index closed in the positive yesterday for the second session in a row, gaining 738 points (or +1.9%) and closing at 39,300 level. Investors were mainly motivated by Prime Minister Imran Khan’s meeting with a Pakistan Stock Exchange delegation led by PSX Chairman Sulaiman Mehdi on Dec 09, 2018.

During the meeting several strategies were discussed to try and rejuvenate the PSE, which included removal of advance Tax of .02% on purchase and sale of shares and allowing carry forward of capital losses up to 3 years among several other decisions.

Oil & Gas exploration companies led the recovery today, as OPEC and Non-OPEC countries decided to cut oil production by 1.2mbpd from January, 2019 onwards. This led to investors flocking towards Oil scrips, like PPL (+5%), OGDC (+4.25%), POL (+3.66%) and MARI (+2.66%), as the sector added 257 points to the index.

Investor participation was mixed today as traded volumes increased by 20% to 154mn, while traded value fell by 1% to US$48mn.

Experts said that Pakistan equities closed on a positive note today with benchmark KSE100 Index gaining +737 points to finally settle at 39,299, up 1.9%. Market remained positive throughout the trading sessions as we believe attractive valuation has stirred value hunting where buying interest was seen Financials where HBL (+3.4%) MCB (+0.7%) and UBL (+1.6%) closed in the green zone.

Energy stocks also gained on the back of the news that the OPEC and Russia has reached a deal to cut production where PPL (+5%) closed limit up whereas OGDC (+4.4%) and POL (+4.2%) closed near upper circuit as well.

Furthermore, a high-level delegation of Pakistan Stock Exchange called on Prime Minister Imran Khan here over the weekend where it was proposed to revive investors' confidence at PSX. Interest was observed in Cements where LUCK (+2.3%) and DGKC (+0.1%) closed positive. Major stocks PPL (+5%), OGDC (+4.4%), HBL (+3.4%), POL (+4.2%) LUCK (+2.3%), FFC (+1.9%) and ENGRO (+1.4%) cumulatively contributed 389 points towards the close.

Average daily traded value stood at $48 million and volume stood at 154 million shares, up 20%. Furthermore, major contribution to total market volume came from KEL (+8.1%), EPCL (+2.7%) and BOP (+2.2%). Moving forward, expect market to remain choppy and volatile on the back of serious economic concerns where we contemplate increase in CAD, currency devaluations, etc. could further bear down on the growth rate.