business
Monday Nov 01 2021
By
BDBusiness Desk

Shares at PSX soar as IMF talks move forward, TLP reaches agreement with govt

By
BDBusiness Desk
— Reuters/File
— Reuters/File

KARACHI: Stock prices at the Pakistan Stock Exchange (PSX) surged on Monday as the benchmark index climbed over 900 points buoyed by progress in talks with the International Monetary Fund (IMF).

The benchmark KSE-100 records an increase of 790.07 points or 1.71% to settle at 46,974.78.

Investors' interest was rejuvenated after Adviser to Prime Minister on Finance and Revenue Shaukat Tarin confirmed that an agreement with the IMF over the revival of the $6 billion Extended Fund Facility (EFF) had been reached and a formal accord will be signed later this week.

Speaking to Geo.tv, Intermarket Securities Head of Research Mohammad Saad Ali said: “The market players rejoiced at the developments that took place during the weekend.”

“The government’s negotiations with the proscribed Tehreek-e-Labbaik Pakistan (TLP) limited the risk factor to an extent, meanwhile, the much-needed clarity on the IMF programme helped the market rebound,” Ali said.

The analyst was of the view that earlier, the market was under pressure due to these two factors.

Moreover, he added that a reduction in coal prices in the international market also fuelled the bullish momentum.

Market pundits also attributed part of the bullish trend to the decision taken by the PSX management to revert to the old trading system — called the Karachi Automated Trading System (KATS) — while glitches in the new one are sorted out. 

Last week, the market faced several technical glitches in the newly acquired Chinese trading system which affected market activity negatively.

KSE-100 trading curve. — PSX data portal
KSE-100 trading curve. — PSX data portal

During the session, shares of 372 listed companies were traded. At the end of the session, 271 stocks closed in the green, 87 in the red, and 14 remained unchanged.

WorldCall Telecom was the volume leader with 53.9 million shares, gaining Rs0.09 to close at Rs2.46. It was followed by Byco Petroleum with 24.5 million shares, gaining Rs0.44 to close at Rs7.47, and Hum Network Limited with 23.2 million shares, gaining Rs0.03 to close at Rs7.11.