Daily Times

Pakistan Stock Exchange (PSX) rebounded emphatically on Thursday, with the benchmark KSE-100 Index surging beyond the 44,000 barrier by 2.57 percent, the largest increase this year, as excellent valuations and days of negativity paved the ground for a bullish run at the exchange. After a dismal start that brought the index close to the 43,000 barrier, the index quickly rallied across all sectors, led by cement, banking, and technology.

At Thursday’s end, the KSE-100 had gained 1,111.90 points, or 2.57 percent, to 44,333,68. The rebound comes after months of gloomy sentiment on the stock exchange, which saw the index fall roughly 11pc since its June peak, when the KSE-100 hovered around the 48,700-point level.

The IMF also forecasts a drop in Pakistan’s gross government debt, from 83.4 percent of GDP in 2021 to 80.9 percent in 2022. Pakistan’s net debt is also predicted to drop from 74.8 percent of GDP in 2021 to 74.1 percent in 2022, according to the IMF study ‘Fiscal Monitor, Strengthening the Credibility of Public Finances’. Government revenue is predicted to be 15.4 percent of GDP in 2022 and 16.6 percent in 2023, up from 14.5 percent in 2021. Meanwhile, market speculation indicates that the Pakistan Stock Exchange (PSX) has begun discussions with the government over the restoration of tax benefits for companies that choose to conduct initial public offerings (IPOs).

The market rise might be linked to a number of causes. Valuations of a number of stocks have become more attractive, since the value of some equities has declined by about 50pc as a result of recent selling, attracting investors’ attention. Encouraging news from the IMF has also contributed to the optimism. On Thursday, 557 businesses’ shares were traded, with 464 rising, 79 falling, and 14 remaining unchanged.

On the corporate front, Meezan Bank earned Rs19.8 billion in profit during 9MCY21, owing to lower provisioning and increased NFI. This is an increase of 8pc year over year and 6pc quarter over quarter.On Thursday, the KSE-100 index gained points in the banking sector (237.51 points), cement (213.46 points), and technology and communication sectors (140.35 points).

The all-share index saw an increase in volume from 354.96 million shares on Wednesday to 388.6 million shares on Thursday. Additionally, the value of the share trade increased to Rs13.09 billion from Rs12.29 billion on Wednesday.

With 66.16 million shares, WorldCall Telecom led the way, followed by Unity Foods Limited with 25.03 million shares and Telecard Limited with 18.99 million shares.