Norwegian
BANNED
- Joined
- Aug 19, 2014
- Messages
- 19,001
- Reaction score
- 11
- Country
- Location
Stocks gain nearly 1,000 points in intraday trading on govt-TLP agreement, progress on IMF deal
Talqeen Zubairi | Mutaher KhanPublished November 1, 2021 - Updated about 3 hours ago
Facebook Count
Twitter Share
2
Stockbrokers are seen at the Pakistan Stock Exchange (PSX) in this file photo. — AFP
Pakistan Stock Exchange's (PSX) benchmark KSE-100 index gained more than 900 points in intraday trading on Monday, buoyed by the agreement between the government and the banned Tehreek-i-Labbaik Pakistan (TLP) as well as the finance adviser's statement regarding ongoing negotiations with the International Monetary Fund (IMF).
The benchmark KSE-100 was up by 51.29 points or 2.06 per cent by 1:18pm.
Raza Jafri, Executive Director at Intermarket Securities, credited the agreement reached between the government and the TLP a day earlier, which ended days of blockades in several cities of Punjab and the capital, as well as progress made on the resumption of the IMF programme.
Adviser to the Prime Minister on Finance and Revenue Shaukat Tarin on Monday said that an agreement with the IMF over the revival of the $6 billion Extended Fund Facility (EFF) had been reached and a formal accord will be signed later this week.
"The issue with the market was a lack of confidence on a hazy top-down outlook. Uncertainty seems to have reduced now," Jafri said.
"We understand cement prices increased by about three per cent in the north over the weekend so that's leading the sector up. And the autos had significantly corrected and looked attractive relative to their recent results," he added.
The benchmark index had gained 641 points in the outgoing week to close at 46,219 points, up 1.41 per cent on a week-on-week basis.
According to AKD Securities, the stock market remained jittery in the first two sessions of last week owing to the uncertainty over the ongoing review of the IMF.
In the third session, however, the stock market rebounded strongly and added more than 500 points on the news of $3 billion expected inflows from Saudi Arabia. It instilled confidence among investors as they became bullish. One consequence of that news was the appreciation in the value of the local currency against the dollar.
In addition, the IMF allowed Pakistan to utilise $2.78bn for meeting budgetary-side requirements that the fund had extended to Pakistan for combating Covid-19. This further fuelled the positive momentum on the exchange.
However, the average weekly volume remained 305.96 million shares, down 10.5pc from 341.8m shares a week ago. The brokerage house said the drop in volume was because of the inefficiencies in the newly implemented trading system at the PSX.
@Desprado @Crimson Blue @Patriot forever @muhammadhafeezmalik @blueazure @Waterboy @Pakistan Space Agency @koolio @farok84
Talqeen Zubairi | Mutaher KhanPublished November 1, 2021 - Updated about 3 hours ago
Facebook Count
Twitter Share
2
Stockbrokers are seen at the Pakistan Stock Exchange (PSX) in this file photo. — AFP
Pakistan Stock Exchange's (PSX) benchmark KSE-100 index gained more than 900 points in intraday trading on Monday, buoyed by the agreement between the government and the banned Tehreek-i-Labbaik Pakistan (TLP) as well as the finance adviser's statement regarding ongoing negotiations with the International Monetary Fund (IMF).
The benchmark KSE-100 was up by 51.29 points or 2.06 per cent by 1:18pm.
Raza Jafri, Executive Director at Intermarket Securities, credited the agreement reached between the government and the TLP a day earlier, which ended days of blockades in several cities of Punjab and the capital, as well as progress made on the resumption of the IMF programme.
Adviser to the Prime Minister on Finance and Revenue Shaukat Tarin on Monday said that an agreement with the IMF over the revival of the $6 billion Extended Fund Facility (EFF) had been reached and a formal accord will be signed later this week.
"The issue with the market was a lack of confidence on a hazy top-down outlook. Uncertainty seems to have reduced now," Jafri said.
"We understand cement prices increased by about three per cent in the north over the weekend so that's leading the sector up. And the autos had significantly corrected and looked attractive relative to their recent results," he added.
The benchmark index had gained 641 points in the outgoing week to close at 46,219 points, up 1.41 per cent on a week-on-week basis.
According to AKD Securities, the stock market remained jittery in the first two sessions of last week owing to the uncertainty over the ongoing review of the IMF.
In the third session, however, the stock market rebounded strongly and added more than 500 points on the news of $3 billion expected inflows from Saudi Arabia. It instilled confidence among investors as they became bullish. One consequence of that news was the appreciation in the value of the local currency against the dollar.
In addition, the IMF allowed Pakistan to utilise $2.78bn for meeting budgetary-side requirements that the fund had extended to Pakistan for combating Covid-19. This further fuelled the positive momentum on the exchange.
However, the average weekly volume remained 305.96 million shares, down 10.5pc from 341.8m shares a week ago. The brokerage house said the drop in volume was because of the inefficiencies in the newly implemented trading system at the PSX.
@Desprado @Crimson Blue @Patriot forever @muhammadhafeezmalik @blueazure @Waterboy @Pakistan Space Agency @koolio @farok84
