KSE-100 Index witnessing bullish momentum for the last several trading session reached above 32,000 levels with a gain of 123 points to close in green at 32,084 levels here on Wednesday. The market volume however remained almost static to the previous trading session while Pak Elektron was the volume leader of the day with a trade of 8.38 million while Dewan cement and Dewan Salaman Fibre were second and third volume leaders with a respective trade of 8 million and 7.68 million shares.
It is said that the recently imposed fixed absolute sales tax on POL prices has increased the possibility of complete pass-on of movement in oil prices to consumer. The government may have little means of absorbing the impact, apart from adjusting the petroleum levy (also imposed in absolute terms). It may be noted that international oil prices fell another 5.5% on Tuesday as API inventory data showed an increase of 3.8mnbbl.
US crude Inventory is already at the highest levels since the 1930's and there is a rising fear that the US may run out of storage capacity shortly. The managing director of the national Iranian Oil Company said the country expects to export 2.3mnbbl per day in the current fiscal year, which was higher than expected.
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