- Clarity on IMF review, flood assistance from Japan rejuvenate investor interest in market
The Pakistan Stock Exchange witnessed a positive session on Wednesday and the KSE-100 Index rose 0.67% aided by a handful of positive triggers.
Investors’ confidence revived following clarity on next review of Pakistan’s economy by the International Monetary Fund (IMF) and announcement of $38.9 million in financial assistance to flood victims from Japan.
By the end of the session, the benchmark KSE-100 Index rose 279.35 points or 0.67% to close at 41,819.29.
Trading began with a rise and the market remained in the positive territory throughout the day. The index climbed steadily to close on a positive note.
Automobile, cement, chemical and banking sectors closed with gains while oil sector ended in the red.
A report from Capital Stake stated that bulls regained control of the PSX on Wednesday.
“Indices accumulated gains all day long, while volumes surged from previous close. News of economic aid from Japan for flood relief kept investors engaged in the market,” it said.
A report from Arif Habib Limited stated that the benchmark KSE-100 index finally ended its losing streak, trading in the green all day.
“Following a clarification by the finance division regarding the 9th review of the IMF Program, the market opened in the green and maintained its positive trend throughout the day,” AHL said. “Investors gained confidence as mainboard volumes gained momentum and participation remained healthy, with third-tier stocks leading in terms of volume.”
On the economic front, rupee registered a marginal loss for the third consecutive session against the US dollar on Wednesday and lost Re0.05 or 0.02% in the inter-bank market to close at 224.16.
Sectors painting the benchmark KSE-100 in green included, cement (52.26 points), technology and communication (48.85 points) and banking (48.44 points).
Volume on the all-share index jumped to 221.5 million from 131.7 million on Tuesday. The value of shares traded surged to Rs5.9 billion from Rs3.9 billion recorded in the previous session.
Dewan Cement was the volume leader with 29.6 million shares, followed by WorldCall Telecom with 21.5 million shares and Kohinoor Spining with 13.6 million shares
Shares of 334 companies were traded on Wednesday, of which 196 registered an increase, 111 recorded a fall, and 27 remained unchanged.