Join our Whatsapp channel

       Bulls regained their control of the trading floor at the Pakistan Stock Exchange (PSX) on Thursday as shares gained more than 1,000 points.

       The benchmark KSE-100 index gained 1,009.70 points, or 0.89 per cent, to stand at 115,094.23 points from the last close of 114,084.53.

       Mohammed Sohail, chief executive of Topline Securities, said that investors were buoyed amid expectations that the International Monetary Fund (IMF) review “will be passed smoothly with old circular debt issue to be resolved with the support of banks”.

       Advertisements

       Video Player is loading.

       Play Video Play Loaded: 1.66%

       0:00

       Remaining Time - -:-

       Unmute

       Fullscreen

       This is a modal window.

       The media could not be loaded, either because the server or network failed or because the format is not supported.

       Beginning of dialog window. Escape will cancel and close the window.

       Text Color WhiteBlackRedGreenBlueYellowMagentaCyan TransparencyOpaqueSemi-Transparent Background Color BlackWhiteRedGreenBlueYellowMagentaCyan TransparencyOpaqueSemi-TransparentTransparent Window Color BlackWhiteRedGreenBlueYellowMagentaCyan TransparencyTransparentSemi-TransparentOpaque

       Font Size 50%75%100%125%150%175%200%300%400% Text Edge Style NoneRaisedDepressedUniformDropshadow Font Family Proportional Sans-SerifMonospace Sans-SerifProportional SerifMonospace SerifCasualScriptSmall Caps

       Reset restore all settings to the default values Done

       Close Modal Dialog End of dialog window.

       Advertisement

       X

       Sana Tawfik, head of research at Arif Habib Limited, attributed the bullish momentum to Moody’s changing the country’s banking outlook to positive.

       Global rating agency Moody’s has upgraded Pakistan’s banking outlook to positive from stable on the back of improved financial performance.

       “We have changed our outlook on Pakistan’s banking system to positive from stable to reflect the banks’ resilient financial performance as well as improving macroeconomic conditions from very weak levels a year ago,” said the statement issued by the rating agency.

       Financial sector experts say the banks have generated substantial profits over the past couple of years despite a lack of engagement in using their money for economic growth. Lending to the private sector has been dismal. However, the government’s aggressive borrowings at an unprecedented 22 per cent and even higher throughout FY24 have significantly enriched the banks.

       In other news, Tawfik also credited the upward trajectory to news circulating regarding the ongoing negotiations with the IMF regarding circular debt.

       Yesterday, the stock market had experienced renewed selling pressure, leading to the benchmark index’s third consecutive negative closing due to concerns about the economic outlook intensified following the announcement of a gas tariff increase for captive power plants (CPPs), which was prompted by the visiting IMF mission.

       The government had notified 23pc hike in gas tariff for CPPs, which will undoubtedly push production costs and hurt the export-oriented segment of the economy, especially the textile sector.