KARACHI - The Karachi stock market rallied for fourth consecutive day on Thursday, with the stocks closing bullish led by oil, fertilizers and auto stocks on strong valuations. The market remained strong through the day’s trade to end higher by 271 points or 0.79pc to close at 34,594.70 points.

Oil scrips led the market’s rally with heavy weights PSO, SNGP, SSGC, OGDC and POL ending 0.9pc, 3.5pc, 5pc, 3.5pc and 0.9pc higher. POL’s rally was mainly attributed to an Oil and Gas discovery in Makori East-4, Tal Block. Sideboard scrips remained in the limelight with JSCL, Lotchem, PIBTL and TELE volume leaders. Food sector remained strong ahead of Ramadan where food sales are expected to grow. Efoods and NATF rallied, ending 2.8pc and 4.2pc higher while QUICE, another turn-around story, ended up 3pc.

Cements remained under pressure as unconfirmed news of DGKC’s expansion plans in the South resurfaced, setting tone for possible instability to the existing cartel, observed analyst Umair Hasan. Continued interest in E&P sector was witnessed, which helped the market to close above 34,500 points after 4-month. Rise in OGDC, POL and PPL supported 100 points to total benchmark index increase of 271 points, analyst thought.

Institutional support was seen in FFC up 3.59pc and FFBL (5pc up) on back of attractive valuations. News on subsidy reduction from electricity traffic boasted the investor confidence in OMCs and IPPs as it may help government to reduce circular debt, they added. Volumes traded of 381m share up by 14pc while value of Rs.16b/ $156m increased by 6pc from previous day.

Ahsan Mehanti said trade was led by second and third tier scrips. Upbeat auto sales data , higher global crude prices, record remittances data and speculations on Pakistan Capital Market potential inclusion for MSCI Emerging Market Index played a catalyst role in bullish sentiments at KSE ignoring concerns for deteriorating Pak-India relations, dismal trade balance data for Jul-May’15 and Nepra imposition of surcharges on power tariff.