PSX remains in positive territory

KARACHI: The Pakistan stocks witnessed a bullish rally during Thursday’s trading session, after the market get a positive signal from the government regarding transitioning towards the market-determined free float exchange rate and taking concrete steps to meet the IMF’s conditions after an unofficial cap on the rupee/dollar rate was removed.

An analyst at Pearl Securities said the move towards the free float; however, resulted in an unprecedented rupee depreciation.

“But it narrowed the gap between the rupee/dollar exchange rates in the interbank and open markets and will help clear the way for successful conclusion of the IMF’s ninth review.”

The benchmark KSE-100 Index reached an intraday high of 40,995 points (+1,210 points) and settled at 40,847 points, up 1,062 points.

The All-share volume increased 35 per cent to 364 million shares against 269 million shares traded the previous day.

Ahsan Mehanti at Arif Habib Corporation said that the stocks showed strong recovery in the earnings season on institutional interest in scrips across-the-board after the government’s decision to take tough decisions for the revival of the IMF programme, amid interbank rupee adjustment to the forex market rate that is likely to raise exports and remittances.

“The investors’ speculations over likely help from the US to ease the IMF terms and receipts from the UAE and Saudi Arabia for financial support played a catalytic role in the bullish activity.”

The volume leaders in the KSE-100 benchmark Index included CYNERGY with 45 million shares, TPL Properties with 20 million shares and WorldCall Telecom with 14 million shares.

Going forward, the analysts expect the benchmark KSE-100 Index to endure stress from uncertainty until the IMF’s ninth review can be successfully concluded.

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