Pakistan stocks experienced a significant boost on Monday as the KSE-100 index surged by 520 points, driven by investor optimism following the resumption of talks between Pakistan and the International Monetary Fund (IMF) for a new loan program.
The benchmark index of the Pakistan Stock Exchange (PSX) closed at 46,073 points, rising from the previous session’s closing of 45,553 points.
Market analysts at Arif Habib Limited attributed the strong performance of Pakistan stocks to the positive sentiment generated by the IMF discussions. The news fueled investor confidence, resulting in a strong start for the KSE-100 index, which opened in the green zone and maintained an upward trajectory throughout the trading session.
Investor participation remained high across the board, reflecting renewed interest in Pakistan stocks. Heavy trading volumes were particularly evident in third-tier stocks, further reinforcing the bullish trend. By the end of the session, the KSE-100 index had climbed by 520.23 points, marking a 1.14% increase on a day-over-day (DoD) basis.
Several key sectors played a pivotal role in the market’s impressive performance. The fertilizer sector led the charge, contributing 156.9 points to the index, followed by banking stocks with a 72-point boost. The technology sector added 58.4 points, chemicals contributed 53.1 points, and the power sector supported the rally with an additional 44 points.
Trading activity witnessed a notable surge, with volumes rising from 217.6 million shares in the previous session to 368.8 million shares, representing a 69.5% increase. The average traded value of Pakistan stocks also saw a remarkable 82.4% jump, reaching $51.9 million compared to $28.5 million in the prior session.
The most actively traded stocks during the session included HUMNL, TELE, WTL, GTECH, and GGL, which recorded significant trading volumes. As Pakistan continues negotiations with the IMF, investors remain optimistic about further stability in the financial markets. Analysts expect continued momentum in Pakistan stocks, provided macroeconomic indicators remain favorable and IMF discussions progress positively.