KSE-100 gains nearly 750 points over hope of IMF programme revival

The KSE-100 Index, widely seen as a benchmark for market performance, shot up nearly 750 points at the conclusion of the trading session on Tuesday, as investor-sentiment improved amid reports that the International Monetary Fund (IMF) deal is likely to be announced in a matter of days.

The KSE-100 initially opened on a positive note, but profit-taking soon kicked in, pushing the index to an intraday low of 41,745, down by 32 points.

"Rumours regarding IMF deal to be concluded tonight triggered value hunting across the board and eventually supported the benchmark index," said Topline Securities in its post-market comment.

By the end of the day, the index settled at 42,525.95, a gain of 748.97 points or 1.79%.

KSE-100 drops 0.86% amid profit-taking at PSX

The index has been under pressure for weeks now as investors keenly await revival of the IMF programme that was put on hold with the change in government.

“The improvement in sentiment comes after the finance minister in a cabinet meeting said that the IMF deal would be announced soon,” said Fahad Rauf, Head of Research at Ismail Iqbal Securities Limited.

The market analyst informed that across-the-board buying was being witnessed at the bourse.

During the federal cabinet meeting on Tuesday, which was held under the chairmanship of Prime Minister Shehbaz Sharif, Finance Minister Miftah Ismail reportedly said that the next round of talks would commence with the IMF tonight.

“The market is reacting to Miftah’s statements pertaining to revival of the IMF programme,” said Ahmed Chinoy, a director at PSX.

“I believe it is a positive development, as scrips are available at attractive valuations,” he said, adding that he believed the interest rate is expected to decline in coming days, which would make equities more attractive.

Earlier, Miftah on Monday expressed optimism that the IMF programme will be revived in the next 24-48 hours, as the government looked to pacify its currency market that has seen the rupee plunge to record lows in recent days.

Sectors driving the benchmark index upwards included technology and communication (136.69 points), oil and gas exploration (95.20 points) and cement (85.58 points).

Volume on the all-share index increased significantly to 300.6 million from 162.1 million on Monday. The value of shares traded also improved markedly to Rs9.47 billion from Rs4.91 billion recorded in the previous session.

TPL Properties was the volume leader with 23.69 million shares, followed by Pak Refinery with 20.65 million shares, and Cnergyico PK with 17.87 million shares.

Shares of 341 companies were traded on Tuesday, of which 268 registered an increase, 49 recorded a fall, and 24 remained unchanged.