Bulls dominated the exchange floor on Wednesday when the actions in the Pakistan Stock Exchange (PSX) increased more than 1,100 points after a successful review of the rescue program of the International Monetary Fund (IMF).
The reference KSE-100 index rose 1,390.46 points, or 1.19 percent to stand at 118,023.62 from the previous closure of 116,633.16 at 9:22 am.
Finally, the index was closed to 117,772.31, more in 1,139.15 or 0.98pc, since the last closure.
Topline Securities, a brokerage firm in Karachi, observed that market profits were mainly driven by UBL, OGDC, PPL, MEBL and Mari, which contributed 883 points to the index.
“A total of 355 million shares were negotiated, with a turnover of RS 37 billion,” he said, adding that Pael led the volume table, with 29 million exchanged shares.
Sana Tawfik, Chief of Investigation of Arif Habib Limited, declared that the “great trigger” behind Toro’s career was the federal government reaching an agreement with the IMF for a new agreement of $ 1.3 billion, together with the first review of the rescue program of 37 months in progress.
In addition, he pointed out that the study by the Petroleum and Gas Development Company (OGDC) and Pakistan Petroleum Limited (PPL) on the viability of the Reko DiQ project also contributed to the bullish impulse.
Yousuf M. Farooq, research director of Chase Securities, echoed the same feelings.
He said: “While the agreement has been signed, market participants now expect more details, particularly regarding IMF’s approval on the fiscal objectives reviewed, the circular debt resolution plan and possible reductions in electricity prices.”
He stressed that the economy remained in a “consolidation phase”, and government spending is expected to remain moderate during the next year.
“Monetary policy is still adjusted, the valuations remain attractive, and we believe that the market will track the growth of the profits,” he said, added that “with the risk of not obtaining an IMF agreement that is now reduced significantly, we hope that the market will rise again, waiting for greater clarity and the final approval of the Board.”
Awais Ashraf, AKD Securities investigation, said: “Investors became optimistic when they reached an agreement at the personnel with the IMF for the disbursement of a section of $ 1.3 billion and access additional financing under the resilience and sustainability center (RSF).”
“In addition, the launch of the revised viability study for Reko DIQ by OGDC and PPL has renewed interest in their respective actions,” he said, added that the energy actions were expected to be the approach today in the midst of progress “Clear Cleaning Debt and the Reko Diq updated feasibility study.”
According to a Limited report by Aribib, OGDC and PPL had completed the feasibility study for the Reko DIQ project, which estimated a 37 -year -old mine life.
As a formal feasibility study confirmed more than $ 60 billion in copper and gold reserves in the Reko Diq project in Baluchistan at prevailing prices, three state -owned sisters have more than double their financing commitment about $ 1.9 billion.
The feasibility study has also confirmed a lucrative rate of investment of 25 pieces in one of the largest copper gold projects, informed sources said, adding that the project operations would be fully executed in solar energy, becoming the only green project of the type until now throughout the world.
In addition, the report stressed that the project would be executed in two phases, with the first established in 2028.
Phase one, according to the report, implies a capital disbursement of $ 5.6 billion and $ 3 billion “financed through the financing installation of limited resource projects (ongoing negotiations), while the rest will provide the contributions of shareholders.”
“Phase II, which is expected to end by 2034, will be financed through project revenues, doubling the 90MTPA processing capacity,” the report said, adding that throughout its useful life, it is projected that Reko diq “will produce 13.1mn tons of copper and 17.9 mn of gold.”
Yesterday, the market had recovered some land, closing at 116,633.17, more than 193.55 points or 0.17pc day by day. This volatility was attributed to the lack of clarity with respect to the review of the IMF and the SLA, which had kept the feeling of investors cautiously.
