PSX's benchmark KSE-100 Index gains 801.79 points or 2.01% to close at 40,673.06 points
Stocksbounced back with a bang Tuesday celebrating make-or-break parleys with International Monetary Fund (IMF) as the financially hamstrung government has finally bitten the bullet — taking high-stakes steps to win a critical bailout.
Pakistan Stock Exchange's (PSX) benchmark KSE-100 Shares Index gained 801.79 points or 2.01% to close at 40,673.06 points.
Arif Habib Limited in a note said the market opened in the green and stayed there throughout the trading session, reaching an intraday high of 826.83 points drawing strength from ongoing negotiations between the government and the IMF mission.
IMF's review mission is in Pakistan for technical and policy level discussions to revive the $7 billion Extended Fund Facility stalled for months.
During the first session of talks on Tuesday, the IMF’s review mission, headed by Nathan Porter, identified the budget deficit and slippages, reiterating its strict stance on implementing the conditions laid forth by the lender.
Finance Minister Ishaq Dar is leading the Pakistani side as the cash-strapped nation launches renewed efforts to complete the pending ninth review.
“Investor participation remained strong due to the potential positive outcome of the IMF talks and as a result decent volumes were observed across the board,” the brokerage said.
Sectors that led the rally include fertiliser (+166.0 points), commercial banks (+122.4 points), exploration and production (+106.0 points), cement (+82.9 points), and miscellaneous (+79.2 points).
Volumes swelled from 140.5 million shares to 153.3 million shares (+9.2%), while the average traded value also jumped 37.2% to $27.8 million as against $20.2 million.
Stocks that contributed significantly to the volumes were WorldCall Telecom Limited, Pakistan Petroleum Limited, Pakistan Refinery Limited, Maple Leaf Cement Factory, and Fauji Cement Company Limited.
Topline Securities in its market wrap said a positive session was observed at the exchange that could be attributed to recovery following pressure in the market Monday where the index lost 1.5% and resumption of talks with IMF – following the IMF team's arrival in Pakistan.
Stocks closed lower on Monday amid concerns for inflation and uncertainty over the law-and-order situation after the Peshawar bomb blast, traders said.
Major contributions to the index came from Engro Corporation, Pakistan Services Limited, Hub Power Company Limited, Engro Fertilizer, and Lucky Cement, as they cumulatively contributed 378 points to the index.