Stocks extended gains at Pakistan Stock Exchange (PSX) for the second consecutive day, as positive news-flow over possible resolution of long term IPP issue and government’s decision to renegotiate tariffs and tax issue with the IMF, lifted market sentiments. On Wednesday, the benchmark KSE-100 opened on a positive note and touched intra-day high at 45,173.61 level after gaining over 610.02 points. However, the index clocked at 44,943.61 level by the closing bell after posting a 380 points gain. During the session, investor sentiments were primarily buoyed by the news regarding the resolution of the long-awaited IPPs issue as the Economic Coordination Committee was set to take up a matter pertaining to 40% dues to IPPs. Investors’ sentiments were also lifted after Finance Minister, Shaukat Tarin stated that a policy has been prepared to shift from stabilization mode to economic growth and there might be some renegotiation with IMF over a delay in an increase in power tariff. Finance Minister Shaukat Tarin said on Wednesday that Pakistan had informed the International Monetary Fund (IMF) that increasing taxes or tariffs was currently unfeasible under the IMF programme, adding that Prime Minister Imran Khan is against a tariff hike. Flanked by Special Assistant to the Prime Minister (SAPM) on Revenue, Dr Waqar Masood, and other officials in his first media briefing in Islamabad, the finance minister, however, ruled out exiting the programme, saying the government has only asked the Fund to not assign revenue targets as the country is battling the third wave of Covid-19. Moreover, the market continued to show optimism, as Kse-100 profitability on a year-on-year basis posted a record increase, primarily led by Fertilizers, Cement, Banks and Chemicals which rounded out the top five spots in the ranking of most profitable sectors. During the session Market Capital increased by Rs.21.79 billion, while total value traded increased by 4.72 billion to Rs.14.81 billion. The volume at KSE-100 surged from 108.32 million shares recorded in the previous session to 129.4 million shares, whereas the all-share volume also increased from 221.5 million shares from the previous session to 259.8 million shares. The volume chart was led by Unity Foods, followed by Telecard Limited and TRG Pakistan Limited. The scrips exchanged 42.39 million, 32.75 million and 30 million shares, respectively. According to the National Clearing Company of Pakistan Limited (NCCPL) foreign investors were net buyers of $1.26 million worth of equities. Among local investors, Mutual Funds led the buying chart and mopped up $1.17 million worth of equities. However, Brokers and Banks led the selling chart offloaded $1.6 million and $1.4 million worth of equities. During the session, sectors which lifted the index were Power Generation & Distribution with 116 points, Commercial Banks with 75 points, Oil & Gas Exploration Companies with 64 points, Cement with 48 points and Oil & Gas Marketing Companies with 32 points. Among the scrips, the most points added to the index was by Hub Power Company which contributed 98 points followed by Pakistan State Oil with 34 points, Pakistan Oilfields Limited with 28 points, Lucky Cement with 21 points and Pakistan Petroleum Limited with 21 points. However, the sectors which dented the index were Technology & Communication with 53 points, Refinery with 8 points and Leather & Tanneries with 1 points. Among the scrips, the most points taken off the index was by TRG Pakistan which stripped the index of 54 points followed by Standard Chartered Bank Private Limited with 11 points, National Refinery Limited with 8 points, Highnoon Laboratories Limited with 4 points and EFERT with 3 points.