Hope of IMF programme revival propels KSE-100 Index by 875 points

The Pakistan Stock Exchange made a much-wanted recovery on Thursday as the benchmark KSE-100 Index was up by 495.44 points, 1.26 percent, a development that came after three consecutive sessions of huge losses.

By the time trading ended, the KSE-100 Index was recorded at 39,838.33 as investors opted for value buying since the shares are being traded at their lowest.

It is welcoming development for the market and investors after the benchmark index suffered a cumulative loss of 1,958.59 points during the first days of the week.

Experts say the bullish trend is attributed to the Finance Minister Ishaq Dar’s decision to constitute a committee to resolve Rs1.5 trillion circular gas debt crises. At the same time, the World Bank’s approval $1.6 billion for different projects in Sindh to rehabilitate the flood-affected people and infrastructure.

On the political side, some of them are of the view that the federal government’s resistance to the PTI call for dissolving the Punjab and Khyber Pakhtunkhwa assemblies also contributed to the bullish close.

However, First National Equities Limited Director Amir Shehzad has a different take, who says the gains are appeared to be because of a technical pullback since the market had been under a lot of selling pressure recently. “As long as there is no clarity on the political front, I think this will be considered a pullback,” he said.

During the Thursday session, the KSE-100 Index oscillated between a range of 39,926.34 and 39,330.02.

The volume of the KSE-100 Index stood at 86.24 million shares, representing an increase of 24.15 percent when compared with 65.41 million shares on Wednesday.

In terms of sectors, most of the positive contributions came from oil and gas exploration, commercial banks, technology, chemical, and cement which cumulatively added 335.79 points to the index.

Out of the 93 shares traded Thursday, the share prices of 68 companies recorded gains, 24 sustained losses while one remained unchanged.

Meanwhile, the volume leaders were Cnergyico PK Limited 17.41 million, TRG Pakistan Limited 8.99 million, Pakistan Petroleum Limited 6.36 million, Pak Elektron Limited 4.73 million, and Oil & Gas Development Company 3.72 million.

The shares which gained the most during the session included: Lotte Chemical 7.48 percent, Attock Refinery 7.14, Yousaf Weaving Mills 6.50 percent, Pak Suzuki Motor 5.99 and Pakistan Petroleum 5.64 percent.

On the other hand, Pak Gul Leasing 13.37 percent, Packages Limited 2.84 percent, Honda Atlas Car 2.25 percent, Bannu Woollen Mills 2.20 percent and Nestle 1.87 percent were the top losers.

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