On Thursday, Pakistan stocks experienced a gain of 251 points as investor confidence improved following the affirmation from the International Monetary Fund (IMF) regarding ongoing talks.
The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) closed at 41,326 points, marking an increase from the previous day’s closing of 41,075 points.
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Analysts at Arif Habib Limited noted that the market witnessed a positive shift after three consecutive sessions of a downtrend. The optimism stemmed from the IMF’s confirmation that discussions between the Pakistani government and the IMF mission were underway for the delivery of the 9th tranche from the IMF Program’s Extended Fund Facility.
Despite the initial positive sentiment, the Pakistani Rupee later experienced a decline against the USD, leading to a loss of investor confidence and lackluster activity in the market.
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Overall, trading volumes remained reasonable, with a focus on third-tier stocks. Several sectors contributed to the market’s performance, including Cement (+54.3 points), E&P’s (+49.2 points), Commercial Banks (+41.6 points), Fertilizer (+31.8 points), and Technology & Communication (+21.8 points).
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The volume of shares traded decreased from 99.2 million shares to 96.9 million shares (-2.4 percent DoD). Additionally, the average traded value declined by -15.0 percent to USD 9.7 million, compared to the previous value of USD 11.38 million.
Among the stocks that significantly contributed to the trading volumes were WTL, PIAA, QUICE, FFL, and MLCF.
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The affirmation from the IMF and the subsequent gain in Pakistan stocks indicate a positive shift in investor sentiment. Continued progress in the ongoing discussions with the IMF will be crucial for the country’s economic stability and investor confidence in the stock market.
