Pakistan stocks witnessed a remarkable surge on Monday, with the benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) soaring by 720 points.
This bullish trend in stocks came in response to the government’s announcement of its intention to adhere to the conditions set by the International Monetary Fund (IMF).
The KSE-100 index closed at 41,191 points, marking a significant increase from the previous Friday’s closing figure of 40,471 points. Analysts at Arif Habib Limited attributed this robust performance to a positive start to the week, buoyed by investor optimism surrounding the government’s commitment to IMF terms.
Following a lackluster close in the previous session, the market opened on a positive note, with bullish sentiment driving the index upwards. Bulls stormed the market, propelling the index to an intraday high of 831 points, fueled by reports indicating the government’s readiness to comply with IMF conditions.
The Exploration & Production (E&P) sector remained in the spotlight, with investors responding positively to news of the government’s consideration to address the outstanding circular debt in the gas sector. This development contributed to a surge in trading volumes across the board.
Various sectors played a significant role in driving the market’s performance, with notable contributions from E&P’s (+327.8 points), Oil Marketing Companies (OMCs) (+74 points), Commercial Banks (+68.9 points), Technology & Communication (+55.8 points), and Cement (+54.7 points).
Trading volumes saw a substantial increase, rising from 105.1 million shares to 176.7 million shares, marking a 42.4 percent day-on-day increase. Similarly, the average traded value surged by 44.4 percent to USD 31.9 million compared to USD 22.1 million.
Several stocks made significant contributions to trading volumes, with companies such as PPL, SNGP, OGDC, KEL, and SSGC leading the pack. These stocks attracted heightened investor interest, driving trading activity and contributing to the overall bullish sentiment in the market.
The surge in Pakistan’s stock market reflects investor confidence in the government’s commitment to economic reforms and fiscal discipline, particularly in adhering to IMF conditions. As the government continues to navigate through economic challenges and implement reforms, investors remain optimistic about the country’s long-term growth prospects.
Moving forward, market participants will closely monitor developments related to IMF negotiations and government policies, as they assess their potential impact on the investment landscape. Amidst ongoing economic reforms and external factors, the resilience of Pakistan’s stock market underscores its attractiveness to domestic and international investors alike.
