Karachi, June 26, 2023 – Pakistan stocks experienced a significant surge on Monday, gaining 1,372 points as investors anticipated the resumption of the International Monetary Fund (IMF) loan program.
The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) closed at 41,437 points, showing a substantial increase from the previous Friday’s closing at 40,065 points.
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Analysts at Arif Habib Limited expressed their satisfaction as the bulls dominated the PSX throughout the day. The week commenced with high hopes for the resumption of the IMF’s 9th review of the Extended Fund Facility after the Prime Minister’s weekend meeting with the IMF’s Managing Director in an effort to revive the halted program.
In response to this positive development, the State Bank of Pakistan (SBP) announced the lifting of import restrictions to provide support to the industrial sector, further boosting investor sentiment.
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Throughout the day, investors remained active, resulting in significant buying across various sectors. The overall trading volume remained healthy, with notable contributions from Commercial Banks (+332.6 points), Fertilizer (+193.3 points), Power Generation & Distribution (+145.4 points), Cement (+138.6 points), and Technology & Communication (+117.1 points).
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The trading volume rose from 136.95 million shares to 226.85 million shares, marking a 65.7 percent day-on-day increase. Similarly, the average traded value surged by 108.8 percent to USD 24.6 million compared to USD 11.8 million.
Several stocks significantly contributed to the increased trading volume, including WTL, FFBL, SNGP, OGDC, and TPLP.
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The surge in Pakistan stocks reflects the market’s optimism regarding the resumption of the IMF loan program, coupled with the SBP’s supportive measures for the industrial sector. Investors showed confidence by actively participating in trading, resulting in substantial gains across multiple sectors.
Market participants will closely monitor future developments related to the IMF program and their potential impact on the stock market in the coming days.
