Stocks rally in anticipation of IMF agreement
PHOTO: FILE
Propelled by hopes of reaching an agreement with the International Monetary Fund (IMF), Pakistan’s bourse registered significant gains of nearly 1,300 points in the outgoing week where four out of five trading sessions turned out to be positive.
The benchmark KSE-100 index rose 1,271 points, or 3.1% week-on-week, and settled at 41,741.78 on Friday.
Optimism prevailed for almost throughout the week as Pakistan’s government and an IMF mission continued to hold negotiations on ninth review of the $7 billion loan programme.
Investors accumulated shares of selected companies, particularly those belonging to the exploration and production (E&P) sector over expectations of resolution of the gas-sector circular debt crisis. However, some profit-taking emerged on the last trading day after news emerged that no agreement could be reached with the IMF.
“The KSE-100 index gained 3% WoW, which can be attributed to the arrival of IMF’s mission for negotiations and an agreement with the government on prior actions,” said Topline Securities in its comments on market’s performance over the week.
However, some profit-taking was observed on Friday as the mission returned without any agreement. Authorities agreed that there were a few differences, which would be discussed in the coming week, it said.
Topline pointed out that investor confidence grew as Pakistan inched closer towards the resumption of IMF programme. “Average daily traded volume and value for the week stood at 284 million shares (up 170% WoW) and Rs12 billion (up 107% WoW).”
Published in The Express Tribune, February 12th, 2023.
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