Monday Aug 15, 2022
KARACHI: Stocks at the Pakistan Stock Exchange (PSX) rallied Monday following news of Saudi Arabia's plans to renew the $3 billion deposit with Pakistan and the hopes of the International Monetary Fund programme's (IMF) revival.
The market staged a rally, adding over 700 points to the benchmark KSE-100 index. It extended the bull run from the previous week and tossed the index above 43,000 points.
Bulls were seen dominating the market throughout the day, as the development IMF programme and rupee appreciation bolstered investor interest.
Earlier, trading kicked off with a rally as investors cherry-picked stocks at attractive valuations.
At close, the benchmark KSE-100 index closed at 43,621.82 points with an increase of 764.25 points or 1.78%.
Capital market expert Muhammad Saad Ali said rising optimism around the resumption of the IMF programme and appreciation of the rupee have improved market sentiments.
"Note that the market was trading at multi-year low valuations of below 4x forward price-to-earnings (P/E) prior to the recent run-up," the capital market expert told Geo.tv.
Alpha Beta Core CEO Khurram Schehzad said the stock market was recovering after the confidence of the investors — who were earlier jittery — was restored.
"PSX continues its recovery based on the investor confidence being gradually restored on macros getting on track slowly and gradually," Schehzad said.
Shares of 368 companies were traded during the session. At the close of trading, 272 scrips closed in the green, 72 in the red, and 21 remained unchanged.
Overall trading volumes rose to 541.54 million shares compared with Friday’s tally of 373.85 million. The value of shares traded during the day was Rs16.83 billion.
K-Electric was the volume leader with 58.62 million shares traded, gaining Rs0.20 to close at Rs3.35. It was followed by Pakistan Refinery with 38.74 million shares traded, gaining Rs0.26 to close at Rs19.72 and WorldCall Telecom with 37.75 million shares traded, gaining Rs0.01 to close at Rs1.35.