PSX gains 258.11 points due to substantial discounted stock price

• The Pakistan equity market witnessed positive momentum during Thursday’s trading.
• Government took further requisite measures to meet the IMF demands.
• The benchmark KSE-100 Index closed at 40,670.88 points, up 258.11 points, or 0.64 per cent.

KARACHI: The Pakistan equity market witnessed positive momentum during Thursday’s trading session based on the expectations that the government will reach an accord with the International Monetary Fund (IMF) in the coming days, analysts said.

An analyst at Pearl Securities said the government took further requisite measures to meet the IMF demands, such as transitioning to a market-determined exchange rate because of which the rupee depreciated 6.66 per cent to close at Rs285.09/dollar.

“The State Bank of Pakistan (SBP) also increased the key policy rate by 300 basis points to 20 per cent in an earlier-than-scheduled monetary policy meeting,” the analyst added.

The benchmark KSE-100 Index closed at 40,670.88 points, up 258.11 points, or 0.64 per cent. The All-share volume decreased 9 per cent to 152 million shares against 167 million shares traded on Wednesday

An analyst at Arif Habib Corporation said that the index opened in the green territory, as the bulls kept drifting the market within the positive zone during most of the trading hours and pulled the index up.

“Today’s bullish move was owed to a recovery phase due to a substantial discounted stock price offering all-time low price to earnings multiple that attracted investors to accumulate dividend yielding stocks to add value to their portfolio.”

Going forward, the analysts expect volatility to persist in the benchmark KSE-100 Index until the IMF’s ninth review is successfully concluded.

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