Stocks soar on hopes of progress on IMF review
PHOTO: FILE
Pakistan Stock Exchange (PSX) rallied on Wednesday as investors were optimistic about the fate of International Monetary Fund (IMF) loan programme following indications that the government would meet the lender’s conditions.
The market kicked off trading on a positive note and moved north in the wake of Prime Minister Shehbaz Sharif’s remarks that the government was keen to complete the ninth review of IMF programme and wanted to conclude the terms through negotiations without any delay so that Pakistan could move ahead.
News flows suggesting that Pakistan was ready to implement a market-based exchange rate further boosted investor confidence. The KSE-100 index remained in the green throughout the trading session and touched an intra-day high of 39,945.62 points.
At close, the benchmark KSE-100 index registered an increase of 729.25 points, or 1.87%, to settle at 39,784.90.
Topline Securities, in its report, noted that it was a positive day for Pakistan equities. “The KSE-100 index opened in the green zone and hit an intra-day high of 39,946 (+890 points; or 2.28%) before eventually settling at 39,785 (+729 points; or 1.87%),” it said.
“The bullish sentiment was attributed to the PM’s stance that the government would try to meet all the pre-requisite conditions to bring the IMF on table for the resumption of ninth review.”
Arif Habib Limited, in its report, said that another bullish session was observed at the PSX. “The market resumed trading with the same optimistic outlook as at the previous close,” it said.
“The index opened in the green zone, accounting for recent developments in relation to the revival of IMF programme, as the government appeared to be taking all possible measures to revive it.”
Overall trading volumes increased to 269.5 million shares compared with Tuesday’s tally of 179.8 million. The value of shares traded during the day was Rs10.6 billion.
WorldCall Telecom was the volume leader with trading in 20.6 million shares, gaining Rs0.05 to close at Rs1.19. It was followed by TPL Properties with 14.5 million shares, gaining Rs0.66 to close at Rs15.99 and Pakistan Petroleum with 13.3 million shares, gaining Rs2.02 to close at Rs80.17.
Foreign investors were net buyers of Rs93.5 million worth of shares, according to the NCCPL.
Published in The Express Tribune, January 26th, 2023.
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