Buying spree lifts share prices by nearly 1,000 points at Pakistan Stock Exchange

The investors at Pakistan Stock Exchange (PSX) went berserk with their buying spree on Thursday lifting the share prices by nearly 1,000 points and pushing the index close to smashing the 82,000 psychological barrier during the intra-day trade, reported 24NewsHD TV channel.

The rampant buying was driven by investors’ growing confidence ahead of International Monetary Fund’s (IMF) executive board meeting on September 25 for considering a new loan programme for Pakistan.

In first few hours of trading on Thursday, the benchmark KSE-100 index climbed up by 1,402.57 points or 1.71 percent to 81,863.90 points from the previous day’s close of 80,461.33. 

As the end to trading drew closer, profit-taking set in, eating up some of the gains of the day. The stocks gained 997.95 points or 1.23 percent taking the index to 81,459.28 at the end of the day.

During the Wednesday’s trading session, the index hit an intra-day high of 81,727.40 points, while the lowest point recorded was 80,680.23. Trading volumes reached 40.6 million shares, with a total value of Rs3.54 billion.

The strong market performance was largely attributed to positive economic indicators, such as a surge in workers' remittances, rising exports, and a narrowing trade deficit.

Analysts pointed to heightened expectations ahead of the IMF’s approval of a $7 billion Extended Fund Facility (EFF) for Pakistan, which has played a significant role in boosting market confidence.

Additional positive news from the Asian Development Bank (ADB), confirming a $2 billion annual concessionary loan for Pakistan until 2027, and the continued stability of the rupee, further fuelled investors’ confidence.

Reporter Ayaz Rana