Karachi: Pakistan stock market opened on a bullish note as extensions to the bullish rally started from the first day of the week on the back of support from positive news about economic revival, rise in oil prices in international markets.
KSE-100 index opened the day in positive and reached up to 46,485points with a jump of 197 points in the first ten minutes of the trade.
On Tuesday, the Ministry of Finance released its monthly economic update and outlook and observed that current outlook ensures economic revival on the basis of continued recovery seen in recent months. Investors and institutions were already active in fresh buying on back of news such as resolve of circular debt issue between government and power producers and the stability in policy rates by the central bank gained further confidence.
The benchmark index that closed above 46,000 physiological barrier for the last two days is likely to consolidate its position, the traders and analyst said. However, the contentious upward movement demands corrections, otherwise, it leaves large gaps to call in profit taking at any level, they added.
Oil and energy stocks were in demand as international oil prices rose about 1% on Monday as optimism around U.S. stimulus plans and some supply concerns boosted futures, but demand worries prompted by coronavirus lockdowns limited gains.
Brent crude futures rose 47 cents, 0.9%, to settle at $55.88 a barrel. U.S. West Texas Intermediate crude ended 50 cents, or 1%, higher at $52.77 a barrel.
