Bullish trend prevails at Pakistan bourse

KARACHI: A bullish trend continued at the Pakistan Stock Exchange (PSX) on Thursday, as the market opened in the green territory and traded healthy volumes throughout the session, analysts said.

An analyst at Pearl Securities said a positive outcome was expected from the International Monetary Fund (IMF), as Finance Minister Ishaq Dar said that the negotiations between the two sides had entered the final round and progress had been satisfactory.

“In addition, the energy sector saw a surge at the PSX due to recent reports concerning the resolution of the circular debt of the state-owned energy enterprises.”

The benchmark KSE-100 Index closed at 42,466.59 points, up 743.27 points, or 1.78 per cent. The All-share volume increased 23 per cent to 367 million shares against 298 million shares traded on the previous day.

Ahsan Mehanti at Arif Habib Corporation said that the stocks close higher led by scrips across-the-board, as the rupee recovery continues on the likely IMF deal and reports of Qatar considering to buyout stakes in the Oil and Gas Development Company (OGDC) and the Pakistan Petroleum Limited (PPL).

“Strong financial results in the banking and fertiliser sectors and speculations over the proposed strong corporate payouts in the oil and gas sector to settle the circular debt crisis, played a catalytic role in the bullish activity.”

Going forward, the analysts expect the market to remain volatile until the IMF’s ninth review is successfully concluded. Hence, we suggest our investors to adopt the sell on strength strategy in the upcoming sessions.

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