- Expectations of positive developments on the IMF front boosted the PSX.
- Hopes of an early resolution of revolving debt weighed on energy stocks.
- PPL topped the volume chart with 14.9 million traded shares.
Stocks made solid gains on Monday, braving 2023. However, with the macroeconomic backdrop unchanged, the fear of default worries investors as foreign reserves dwindle and lenders continue to remain locked-in.
The KSE-100 index of the Pakistan Stock Exchange (PSX) closed up 395.45 points or 0.98 percent at 40,815.90 points.
Arif Habib Limited said in a report that the market opened in the red but quickly rallied to an intraday high of 607.06 points.
“Investors remained upbeat during the trading session on positive news about International Monetary Fund (IMF)’s ninth tranche review, while the exploration and production sector was in the headlines on circular debt resolution news,” the brokerage said.
Volumes were good across the board, with refineries and the energy sector in the spotlight.
Among the sectors contributing to the positive performance were Commercial Banks (149.0 points), Fertilizers (147.2 points), Energy (+108.3 points), Oil Marketing Companies (+33.8 points) and Refineries (+21.8 points).
Volume decreased from 284.5 million shares to 242.2 million shares (-14.9%). Average trade value also fell 8.6 percent to $32.1 million, compared to $35.1 million.
Pakistan Petroleum Limited, Pakistan Refinery Limited, Hascol Petrol, Cnergyico PK Limited, and WorldCall Telecom Limited stocks that contributed significantly to the volume.
Topline Securities said in a note that the buying momentum could be attributed to market expectations of some progress on the revolving credit front as the government moves to resume talks with the IMF to open the next tranche. Gas is ready to increase tariff to meet the precondition.
Stocks from the Fertilizer, Exploration & Production and Banking sectors contributed positively to the index during the day while Engro Corporation, Pakistan Petroleum Limited, United Bank Limited, Engro Fertilizer, and Fuji Fertilizer contributed 260 points to the index.
On the other hand, Hub Power Company, Lucky Cement, and System Ltd. declined by a combined 65 points. PPL topped the volume chart with 14.9 million shares traded.