It was select positivity at the Pakistan Stock Exchange (PSX) as the benchmark KSE-100 Index, led by buying activity in index-heavy shares, crossed the 80,000 level on Wednesday.
The KSE-100 started the session with a buying spree that continued throughout the session, taking the index to an intra-day high of 80,587.44.
At close, the benchmark index settled at 80,461.34, up by 970.20 points or 1.22%.
Broad-based buying was observed in blue-chip stocks, where heavyweights such as MARI, EFERT, UBL, MEBL, and FFC posted significant gains, collectively contributing to a notable 682-point rise, brokerage house Topline Securities said.
Experts said some of the positivity comes as investors anticipate the International Monetary Fund (IMF) Executive Board approval.
The IMF board is scheduled to take Pakistan’s 37-month Extended Fund Facility (EFF) of about $7 billion on the agenda on September 25.
On Monday, PSX benchmark KSE-100 Index closed 158 points higher to settle at 79,491.14 as profit-taking trimmed intra-day gains.
It is pertinent to mention that the stock market was closed on Tuesday on account of the Eid Milad-un Nabi holiday.
Globally, Asian markets swung between gains and losses Wednesday as traders tried to ascertain how big an expected Federal Reserve interest rate cut would be later in the day, while the dollar held gains against the yen after forecast-beating US data.
While the US central bank is widely expected to slash borrowing costs for the first time since the start of the pandemic, the big question is whether officials will go for a bumper move before a series of smaller ones into the new year.
The prospect of easier financial conditions has helped push markets higher this year, with several major indexes hitting multiple records, but observers warned that with prices elevated and a period of cuts baked in, equities could be in for a period of volatility.
Wall Street had a tepid day, with many investors keeping their powder dry until the Fed’s decision and boss Jerome Powell’s post-meeting statement later Wednesday.
Meanwhile, the Pakistani rupee remained largely stable against the US dollar, appreciating 0.03% in the inter-bank market on Wednesday. At close, the currency settled at 278.04, a gain of Re0.09 against the US dollar.
Volume on the all-share index fell to 400.19 million from 536.19 million on Monday.
However, the value of shares jumped to Rs15.9 billion from Rs8.91 billion in the previous session.
WorldCall Telecom was the volume leader with 32.23 million shares, followed by TRG Pak Ltd with 22.08 million shares, and Pace (Pak) Ltd. with 19.65 million shares.
Shares of 439 companies were traded on Wednesday, of which 186 registered an increase, 199 recorded a fall, while 54 remained unchanged.