Intra-day update: KSE-100 powers past 74,000 with over 500-point gain

The Pakistan Stock Exchange (PSX) continued its merry-run as the benchmark KSE-100 gained over 700 points during the opening hours of trading on Tuesday.

At 11:40am, the benchmark index was hovering at 74,362.27, an increase of 563.16 points or 0.76%.

Buying was witnessed in sectors including commercial banks, fertiliser, oil and gas exploration companies, OMCs, and refinery.

Index-heavy stocks of OGDC, PPL, PSO, SNGPL, HBL and NBP were trading in the green.

Investors attributed the buying spree to progress in talks between the International Monetary Fund (IMF) and the Pakistani authorities about a new programme.

In a key development, Wall Street bank Citi expected Pakistan to reach an agreement with the IMF for a new four-year programme of up to $8 billion by end-July.

“A larger and longer IMF EFF (Extended Fund Facility) program could be finalised by July – possibly a $7-8 billion 4-year program and secondly and a possible inflow of Saudi investments,” Nikola Apostolov at Citi wrote in a note to clients.

Meanwhile, the government of Pakistan on Monday kick-started the discussions on further engagement with the Fund.

According to the Finance Division’s official statement, the IMF mission led by Nathan Porter, IMF Mission Chief called on the finance minister on Monday at the Finance Ministry.

On Monday, PSX witnessed a bullish session as its benchmark KSE-100 closed nearly 1% higher to settle at 73,799.11, up by 713.61 points.