The Pakistan Stock Exchange (PSX) experienced an excellent flee, with the benchmark KSE-100 Index rising more than 550 points in the first hours of trade on Thursday.
At 11:45 a.m., the benchmark index was trading at 47,975.55, up 556.92 points or 1.17%.
The KSE-100 Index closed flat on Wednesday, following a day of range-bound trading due to a lack of new triggers.
On Thursday, however, index-heavy sectors saw widespread buying, with vehicle assemblers, cement, chemical, commercial banks, oil and gas exploration businesses, pharmaceuticals, OMCs, and refinery sectors all trading in the green.
During trading, there was a lot of purchasing in the electricity and banking sectors.
According to experts, the run coincides with rumors that the caretaker administration and the International Monetary Fund (IMF) had made formal contact about the circular debt management plan.
On Wednesday, the IMF envoy in Pakistan stated that the reform process agreed upon by the government requires the country to keep all state-owned businesses (SOEs) under the supervision of the finance ministry.
“Following through on the previously agreed 2021 triage reform process, as well as other governance and private sector reforms, is critical to attracting long-term foreign investment,” said Esther Perez Ruiz of the IMF in a statement.
In June, the IMF achieved a staff-level agreement with Pakistan on a $3 billion stand-by arrangement (SBA), a decision long awaited by the South Asian country, which was on the verge of default.