Pakistan equity market gains 612 points

• The Pakistan bourse witnessed a rally on Tuesday.
• Pakistan later this week to break the deadlock on the IMF ninth review.
• The All-share volume increased 121 per cent to 180 million shares.

KARACH: The Pakistan bourse witnessed a rally on Tuesday, fuelled by the news that the International Monetary Fund (IMF) mission is expected to arrive in Pakistan later this week to break the deadlock on the IMF ninth review, analysts said.

An analyst at Pearl Securities said the IMF’s review will result in the release of $1.2 billion tranche and signal a green light to further capital inflows from bilateral and multilateral lenders.

“However, the impact of a 100bps hike by the SBP in the policy rate was already incorporated in the market.”
The benchmark KSE-100 Index reached an intraday high of 39,092 (+648 points) and closed at 39,056 points, up 612 points, or 1.59 per cent.

The All-share volume increased 121 per cent to 180 million shares against 81 million shares traded a day ago.
An analyst at Arif Habib Limited said the bulls triumphed at the PSX. The investors celebrated after the much-needed clarity on the monetary policy statement, as the index opened in the green territory and proceeded to trade positively throughout the trading session.

“Anticipating favourable outcomes from the IMF programme’s revival at a staff level meeting soon helped the index reach an intraday high of 648.11 points, as the investors remained active throughout the day.”

The volume leaders included Pakistan Petroleum Limited (PPL) with 13 million shares, Maple Leaf Cement (MLCF) with 12 million shares and WorldCall Telecom Limited (WTL) with 12 million shares.

Going forward, the analysts expect the benchmark KSE-100 Index to remain under pressure until more certainty pertaining to the IMF’s ninth review and Pakistan’s political outlook can be established.

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