KARACHI: Breaking the shackles of six continuous sessions of losses, the KSE-100 index surged 965.21 points to 38,863.50 points within the 40 minutes of trading on news that Pakistan would be officially approaching the IMF for a bailout.
The KSE-100 index touched an intra-day high of 39,027.34 points within the first twenty minutes of trading, as uncertainty prevailing on the economic front ended and investors breathed a sigh of relief.
Investors rejoiced government’s late night decision to approach IMF for addressing burgeoning external accounts where the market gained 3 per cent during intra-day session, while managed to close with gain of 1.6% at index level of 38,505.
Early proceedings were dominated by bulls as early morning rupee devaluation of 7‐8% in the opening 45 minutes of the market helped index to increase by 1,100 points and peaked at 39,027 points.
Later, cyclical sector like cements, and autos cooled off and dragged index by 31 and 19 points respectively. Currency devaluation helped E&P stocks to close near to upper locks amidst their dollar‐indexed revenues, where the said sector alone contributed 294 points to the index gain.
Chemical sector gained investor’s attention by topping the volume leader chart as margins of select stocks (LOTCHEM, SPL, EPCL and DOL) are expected to improve due to rupee devaluation.
The highest trading was witnessed in commercial banking shares, chemical, cement, food & personal care products, pharmaceutical stocks and others.
The biggest advancers in stocks were Bata Pakistan, Island Textile Mills Limited, Mari Petroleum and Millat Tractor.
And the biggest losers in stocks were Khyber Tobacco, Hino Pak Motor, Indus Motor Company and Honda Atlas Cars till the filing of this report.
The economic uncertainty had affected the capital markets, as the KSE-100 index plunged 1328 points on Monday and ended six consecutive sessions of losses for the investors who lost billions in the process.