PSX soars as IMF programme on track

KSE-100 index shoots up by 1,061.63 points to close at 40,846.53

KARACHI:

Bulls held sway at Pakistan Stock Exchange (PSX) on Thursday, tossing the KSE-100 index above the 40,000-point mark as the government was back on track to revive the International Monetary Fund (IMF) programme.

The market commenced trading with a spike, cheering the government’s eagerness for the resumption of IMF loan programme with the end of control over the rupee- dollar exchange rate.

News flow regarding the visit of IMF’s team to Pakistan from January 31 for talks on the ninth review revived investor interest and resultantly the market shot up by over 1,000 points.

Investor sentiment remained buoyant throughout the day when the index touched an intra-day high of 40,994.69 points. At close, the benchmark KSE-100 index registered an increase of 1,061.63 points, or 2.67%, to settle at 40,846.53.

Topline Securities, in its report, noted that Pakistan equities skyrocketed as the KSE-100 index settled at 40,846 (up 2.67%).

“The day kicked off on a positive note and remained positive throughout the day, as investors cheered government’s efforts to revive the IMF programme where new taxation measures of nearly Rs300 billion were on cards,” it said.

“Furthermore, Pakistani rupee in the inter-bank and open markets started falling, which led the bourse to an intra-day high of 1,209 points.”

Habib Bank, Engro Corporation, Fauji Fertiliser, Meezan Bank and United Bank were the major gainers, which cumulatively added 409 points to the KSE-100 index.

On the results front, Mari Petroleum announced 2QFY23 earnings per share (EPS) of Rs83.56 along with dividend per share (DPS) of Rs89. Also, Honda Atlas Cars announced 3QMY23 EPS of Rs5.68, Topline added.

Arif Habib Limited, in its report, said that another bull run was witnessed at the PSX.

“The market resumed trading on a positive note and proceeded to an intra-day high of 1,209.79 points after the government took positive measures to meet the IMF’s pre-requisites before the resumption of talks for the revival of loan programme,” it said.

“The major confidence booster for investors proved to be the free float of exchange rate as volumes soared across the board."

The index closed at 40,846.53, up by 1,061.63 points (+2.67% day-on-day). Sectors contributing to the performance included banks (+353.9 points), fertiliser (+230.1 points), cement (+100.4 points), miscellaneous (+81.4 points) and power (+46.7 points), the AHL report added.

JS Research analyst Mohammed Waqar Iqbal said that the KSE-100 index posed a gain of 1,062 points day-on-day to close at 40, 846. Volumes stood at 364 million shares as compared to 268 million shares traded previously.

"Going forward, the upcoming IMF agreement will remain the key driving force for the market and investors may opt out for proft-taking in the coming days. We recommend investors to adopt a buy-on-dips strategy in the tech, banking, and cement sectors," said the analyst.

Overall trading volumes increased to 364.1 million share compared with Wednesday's tally of 296.5 million. The value of shares traded during the day was Rs14.5 billion.

Shares of 356 companies were traded. At close, 257 stocks closed higher, 77 declined and 22 remained unchanged.

Cnergyico PK was the volume leader with trading in 44.7 million shares, gaining Rs0.26 to close at Rs4.02. It was followed by TPL Properties with 20 million shares, gaining Rs0.4 to close at Rs16.39 and WorldCall Telecom with 14.3 million shares, gaining Rs0.01 to close at Rs1.20.

Foreign investors were net buyers of Rs312 million worth of shares during the trading session, according to the NCCPL.