PSX remains bullish, as govt vows to meet IMF conditions

• Pakistan equity market witnessed a strong rally on Wednesday.
• The benchmark KSE-100 Index reached an intraday high of 39,946 points.
• The market resumed with the same optimistic outlook as the previous closing.

KARACHI: the Pakistan equity market witnessed a strong rally on Wednesday, despite prevailing political turmoil, as bullish momentum was fuelled by the prime minister’s statement, reaffirming the government’s commitment to meet the International Monetary Fund (IMF) demands to revive the stalled ninth review and receive a $1.2 billion tranche, analysts said.

An analyst at Arif Habib Limited said another bullish session was taped at the Pakistan Stock Exchange (PSX).
“The market resumed with the same optimistic outlook as the previous closing. The index opened in the green zone, with the bulls taking charge throughout the trading session, reaching an intraday high of 889.97 points.”

“The positive trend accounted to the recent developments on the revival of the IMF programme, as the government appears to be taking all-possible measures to revive the programme, as it was reported that in the next Economic Coordination Committee (ECC) of the Cabinet meeting the gas tariffs will be raised, assisting in the resolution of the gas circular debt in accordance with the IMF requirements.”

The benchmark KSE-100 Index reached an intraday high of 39,946 points (+890 points) to close at a 39,785 points, up 729 points, or 1.8 per cent.

The All-share volume increased 50 per cent to 269 million shares against 180 million traded the previous day.

Going forward, the analysts expect the benchmark KSE-100 Index to remain under pressure until the IMF’s ninth review can be successfully concluded and more stability can be achieved on the political front.

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