Bulls took control of the Pakistan Stock Exchange (PSX) on Thursday as shares gained over 1,400 points, bringing calm to yesterday’s heightened volatility.
The positive momentum comes just a day after Pakistan received the second tranche from the International Monetary Fund (IMF), worth $1 billion, under its loan programme.
The KSE-100 index opened with a gain of 858.23 points (0.73 per cent) to stand at 119,394.75 points from the previous close of 118,536.52 at 9:40am.
The intraday high was recorded 119,990.30 points at around 3:18pm, 1,453.78 points (1.23pc) higher than yesterday.
Finally, the KSE-100 closed at 119,961.91 points, with a gain of 1,425.39 points (1.20pc) compared to the previous close.
Samiullah Tariq, head of research and development at Pak Kuwait Investment Company Ltd, said the market was positive due to the recent inflows from the IMF.
He also noted there were “expectations of further inflows on the back of the IMF Board approval”, which on May 9 greenlit the $1bn tranche but also allowed an additional arrangement for $1.4bn climate funds under the Resilience and Sustainability Facility (RSF).
Today’s bullish momentum comes as the market continues to recover from the upheaval brought by the intense military row between Pakistan and India last week, after the two agreed to a ceasefire.
Shares in the subsequent session had gained a record 9pc.
Tariq also mentioned lower yields on treasury bill auctions and expectations of resolution of circular debt in the gas and power sectors.
Last month, the energy ministry had informed the National Assembly that the circular debt had declined by Rs9bn during the first six months of the current fiscal year.
