Pakistan Stock Exchange on Tuesday positively reacted to the government’s announcement to go for International Monetary Fund (UMF) Programme for economic stability and closed higher.
The benchmark KSE 100 index of PSX closed 606.55 points up at 38504.84. Stock on the market showed strong recovery after Monday’s significant fall.
The recovery was across the board as investors weighed the government decision to opt for the IMF programme for fixing the country’s external account imbalances.
On Tuesday, the market opened flat. However, after half an hour trading, bullish trend propelled the market to hit the day’s high. The market moved up to 39027.34 points led by over 1100 points’ gains. However, after the close of trading, the market closed 606.55 points up at 38504.84.
Senior market analyst and Chief Executive Officer of Arif Habib Corp Ahsan Mehnati while commenting on the bullish trend in the market said that stocks showed strong recovery led by scrips across the board as investors weighed government’s decision to go for IMF programme for stabilisation and economic recovery.
He added oil and banking stocks outperformed on surging global oil prices and higher banking spreads. Mehnati said auto, steel and cement sectors underperformed on weak earnings outlook, record rupee depreciation and likely curtailment of CPEC projects.
He opined that the late session buying on likely economic stability post-IMF bailout played a catalyst role in bullish close.
On Tuesday trading held on shares of 386 companies. Out of these, share prices of 202 companies gained while share prices of 161 companies fell. The share prices of 23 companies remained unchanged.
Island Textile was the market leader in term of per share gain followed by Marri Petroleum. The share price of Island Textile surged by Rs 84 per share to close at Rs 1932 while the price of Marri Petroleum increased by Rs71.07 per share to close at Rs 1550.85.
The biggest loser was Indus Motor CoXD followed by Sapphire Tex. The share price of Indus Motor fell by Rs 56.90 to close at Rs1109.59 while the share price of Sapphire Tex fell by Rs49.20 to close at Rs1164. During Tuesday’s trade on the marker some 125,037,290 shares changes hands.