KSE-100 up over 350 points as bullish wave continues

Bullish momentum continued at the Pakistan Stock Exchange (PSX) as the benchmark KSE-100 Index was up 0.8% on Wednesday.

However, both the volume and value of shares traded declined from the previous session.

At close, the benchmark index settled at 45,514.95, an increase of 359.15 points or 0.8%.

The development comes a day after the KSE-100, boosted by the $2 billion inflows deposited by Saudi Arabia in Pakistan’s central bank, rallied to over 45,000 for the first time since April 2022.

Across-the-board buying was witnessed in index-heavy sectors including automobile assemblers, cement, chemical, commercial banks, oil and gas exploration companies and OMCs, while the pharmaceutical and technology sector remained in the red.

Market experts said investors are hopeful that the International Monetary Fund’s Executive Board would approve the 9-month stand-by arrangement (SBA) of $3 billion for Pakistan today (Wednesday).

According to the IMF Executive Board calendar available on its website, the next meetings are scheduled for July 12, 13, 17, 19, and 20, 2023; however, Pakistan was not on the agenda till the filing of this report.

Sources, however, told Business Recorder that the Board is scheduled to take Pakistan’s case on the agenda on Wednesday. Official sources in the Finance Ministry revealed to Business Recorder that there are high chances that the IMF Executive Board would approve the new programme for Pakistan.

After the approval of the IMF board, Pakistan will get an installment of $1.1 billion.

On the economic front, the Pakistani rupee strengthened further against the US dollar, appreciating 0.39% to settle at 277.48 in the inter-bank market on Wednesday.

Sectors driving the benchmark index upwards included banking (183.06 points), power generation and distribution (71.34 points) and oil and gas exploration (61.37 points)

Volume on the all-share index declined to 450.3 million from 555.1 million on Tuesday, while the value of shares traded dropped to Rs13.1 billion from Rs15.5 billion recorded in the previous session.

WorldCall Telecom was the volume leader with 49.9 million shares followed by Unity Foods Limited with 20.3 million shares and Pak International Bulk with 18.2 million shares.

Shares of 359 companies were traded on Wednesday, of which 173 registered an increase, 163 recorded a fall and 23 remained unchanged.