KARACHI: On Tuesday, the Pakistan Stock Exchange opened in a bullish mood as the KSE-100 index crossed 46,000 mark as energy, banking and oil sector remained in demand throughout the day. The renewed investment seems to be supported by positive outlook of the economy.
The Karachi Share Index (KSE-100) gained 316.62 points (0.69 per cent) after closing at 45,922.04 points against the previous closing of 45,605.42 points. The market went up to 46,010.74 points during intra-day trading, while recorded as low as 45,605.42 points.
Trading volume increased to 825.89 million shares today as compared to 588.03 million traded in the previous session, according to PSX website data. The daily traded value increased to Rs 21.13 billion from Rs 17.74 billion in the previous session, the data said.
The market opened on a bullish note as the Index recorded 83 points jump to 45,688 points just of the trade opening at 9:35am. The correction of previous day created room for fresh buying in market’s leading stocks. Investors sentiments were positive due to good news coming from economy despite COVID-19 pandemic, analyst and researchers said. The clear indication of improvement by central bank raised hopes amongst investors, they added.
Expressing optimism about the country’s economic outlook despite the fallout from COVID-19, the Governor of the State Bank of Pakistan Dr Reza Baqir has said the country is in talks with International Monetary Fund (IMF) to put the fiscal support program back on track.
With dwindling foreign exchange reserves and struggling economy, Pakistan entered a three-year International Monetary Fund (IMF) programme worth $6 billion in 2019. But its second review remains pending since early last year. We hope to have good news for the market and the world that we are putting the programme back on track he said on Monday. There was no disagreement on the end goal between the two sides, and that Pakistan needs to increase its low tax to GDP ratio, Dr Baqir said.
Pakistan and the IMF have been working to implement IMF-supported economic reforms, in particular tax collection, aimed at stabilising the economy and shoring up a yawning fiscal deficit.
Pakistan received $1.4 billion in emergency financing from the IMF to allow it to fund targeted and temporary spending increases aimed at containing the pandemic and mitigating its economic impact. Authorities are counting on the IMF bailout package to bolster Pakistan’s fiscal position and increase global confidence in its economy.
The share price of Millat Tractors increased by Rs 43.96 to Rs 1,161.05 while Khyber Tobacco gained Rs 34.03 to Rs 487.77. On the other hand, Nestle Pakistan lost Rs 109.60 today to close at Rs 6,660.40 while Gatron Ind. lost Rs 42.37 to close at Rs 522.63s.
