The Pakistan Stock Exchange continued making huge gains for the second consecutive day as the benchmark KSE-100 Index was up nearly 900 points in the morning session on Wednesday as investors were buoyed by the hopes of progress in the IMF programme.
Following a 1.59 percent gain during the last session, the KSE-100 Index was recorded at 39,784.90, or 1.87 percent, against the previous level of 39,055.65 by the time trading was closed for the day.
It was Prime Minister Shehbaz Sharif’s statement on yesterday that worked for the market, in which he indicated that the government was finally ready to meet the stringent IMF conditions to revive the loan programme.
“We are ready and want to sit down regarding your [IMF’s] conditions so that [the review] can be concluded and Pakistan moves forward,” he said at an event in Islamabad.
“I spoke to the IMF managing director two weeks ago and we have proactively approached them… so that the programme moves forward, in addition to other multilateral and bilateral programmes,” he added.
Similarly, the currency market’s decision to remove an unofficial cap on the US dollar exchange rate too is seemingly having a positive impact – fulfilling one of the IMF conditions.
Also, the investors are expecting that the government would be able to attract some foreign investors to buy the shares of the state-owned entities in oil and gas sector.
However, this positivity was initially triggered by the State Bank of Pakistan’s Monetary Policy Committee decision to jack up the interest rate by only 1 percent to 17 percent against the fears that there could be up to 2 percent increase.
On Wednesday, the overall market volume stood at 269.23 million shares, representing an increase of around 30 percent against the 179.70 million shares traded in the previous session.
A total of 337 stocks were traded during the day out which 224 made gains, 92 declined and 21 remained unchanged.
The market gains were mainly a product of the contributions from the oil and gas exploration and marketing companies as the share prices of all of these up with a huge trading volume. A similar positive trend is being witnessed in sectors like cement as well as technology and communication.
When it comes to the KSE-100 Index, its volume was recorded at 148.83 million shares, showing a huge jump when compared with the last session.
During the day, 94 stocks were on offer for trading out of which the share prices of 71 were up, 22 down, and one did not see any change.
Amid the hopes of foreign investment in the oil and gas sector, the Pakistan Petroleum with 13.28 million shares again on the top in the volume leaders list on the KSE-100 Index. It was followed by Sui Northern 12.26 million, TRG 9.34 million, Fauji Cement 8.61 million, and CNERGY 8.10 million.
As far as the advancers are concerned, the share price of Pak Gulf Leasing was up by 14.84 percent after a 14.51 percent on Tuesday. Other best performers were Kohat Cement 7.50 percent [after a similar gain yesterday], Habib Bank 7.49 percent, Shakarganj Mills 7.32 percent and Sui Northern 6.47 percent.
But when comes of those witnessing a decline, the worst performing shares were Fatima Fertilizer 1.95 percent, Allied Bank 1.88 percent, Abbott Laboratories 1.76 percent, Highnoon Laboratories 1.11 percent, and GlaxoSmithKline Pakistan 1.09 percent.