Karachi: Pakistan stocks posted sharp gains on Wednesday amid delays in the Panama case hearing and institutional interest in scrips across the board in the earning season’s rally. The KSE 100 index gained 698 points or 1.41 percent to close at 49,455 level.

“Oil stocks outperformed on FM decision to increase local POL prices. Record earnings announcements in steel, cement and Pharma sectors played a catalyst role in major surge at PSX”, observed Ahsan Mehanti, a senior analyst.

The market opened positive and traded higher with sectors such as Consumers, Industrials and Pharmas leading gains on reported local buying.

Moreover, a lower inflation reading of 3.66 percent YoY for January 2017 and delay in court hearings related to Panama investigations also helped wider market sentiments. Most Steel plays closed the day at their respective upper price limits after International Steel notified exchange of increasing capacity, said analysts at Elixir Securities.

International Steels Limited has furnished its expansion plans; the company aims to increase its Cold Rolling Capacity to 1 million tons per annum with the addition of a Cold Rolling Mill, a pickling line and related facilities. The project cost is Rs 5.6 billion and ISL expects it to be commissioned in one year. The company intends to finance the expansion through a combination of its own resources along with long term loans, according to Topeline Securities.

Engro Foods too hit the upper price limit as it came under the radar of investors after the news of Friesland Campina – the new parent company of Engro Foods – possibly investing additional $100 million in next few years to make Pakistan a dairy products exporting country. Meanwhile, the hunt for yield continued as earnings and payout related excitement drove Hub Power to new all-time high on reported institutional buying.

Overall, volumes increased by 12.7 percent to 356 million shares, while value rose by 5 percent to Rs 20.3 billion/ $193 million.

K-electric remained the volume leader with 68 million shares traded followed by Dost Steel 19 million, Aisha Steel Mill 18 million, Lotte Chemical 17 million, TRG Pak 17 million, and Bank of Punjab 11 million.

On Wednesday shares of 417 companies were actively traded at the bourse out of which shares of only 311 companies ended in green, 89 in red, while 17 remained unchanged.

Analysts expect that the volatile market may retest the 50,000 level during this current week primarily driven by institutional buying and excitement related to ongoing results season. Technical resistance at highs and news flow from domestic politics will keep investors on the lookout.