KSE-100 increases over 1,000 points as Pakistan moves to revive IMF programme
- Across-the-board buying seen in index-heavy sectors
The Pakistan Stock Exchange (PSX) continued to enjoy a bull run on Thursday with the benchmark KSE-100 Index witnessing an increase of over 1,000 points.
The surge came as the rupee once again reverted to the free float mechanism and the market dynamics determined its value. This signalled government’s willingness to resume the stalled International Monetary Fund (IMF) programme and boosted investor sentiment.
At the end of trading on Thursday, the KSE-100 Index closed with a gain of 1,061.63 points or 2.67% at 40,846.53.
Rally continues at PSX as KSE-100 up over 700 points
Trading began with a jump and the KSE-100 Index rose steadily throughout the session.
Across-the-board buying was seen in index-heavy sectors including automobile, cement, chemical, commercial banks, fertiliser, and oil & gas marketing companies trading in the green.
Experts attributed the ongoing positive sentiment to reports suggesting Pakistan is willing to implement all prerequisites of the crucial IMF programme, which remains stalled till date.
“The decision to remove a price cap by exchange companies suggest that we are moving towards the resumption of the IMF programme,” said Abdullah Umer, an analyst.
“Moreover, it is expected that the Federal Cabinet would raise gas prices in the upcoming meeting.
“It was also learnt that a mini-budget is also in the offing, which would bring additional tax measures of about Rs200-300 billion. All these measures are being taken to revive the IMF programme, which is crucial as we do not have enough foreign exchange reserves,” he added.
A report from Capital Stake stated that “extending rally from the previous day, the PSX closed the session on Thursday in green”.
“Indices accumulated gains all day long while volumes surged from last close. Hopes of recovery of IMF programme, start of the earnings season and anticipation of economic aid from United States, United Arab Emirates and Saudi Arabia improved investors confidence.”
Additionally, the rupee was also off its hook in the inter-bank market, and saw massive depreciation.
On Tuesday, the Exchange Companies Association of Pakistan (ECAP) also said it had decided to “remove a self-imposed price cap” it used to sell and buy dollars in the open market, adding that it will now trade in accordance with the prevalent demand and supply dynamics.
Sectors lifting the benchmark KSE-100 Index higher included banking (353.87 points), fertiliser (230.07 points) and cement (97.46 points).
Volume on the all-share index increased to 269.5 million from 179.8 million on Tuesday. The value of shares inched up to Rs10.6 billion from Rs6.4 billion recorded in the previous session.
Cnergyico PK was the volume leader with 44.73 million shares, followed by TPL Properties with 20.1 million shares and WorldCall Telecom with 14.29 million shares.
Shares of 356 companies were traded on Thursday, of which 257 registered an increase, 77 recorded a fall and 22 remained unchanged.
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