Buoyed by the IMF accord, investors thronged the Pakistan Stock Exchange on Monday, sending the share prices through the roof with KSE-100 index recording a massive increase of 2,444 points at the opening of the business after Eid holidays, reported 24NewsHD TV channel.

As widely believed, the stocks surged massively at the opening bell with an increase of 5.5 percent, before retreating slightly.

The trading was so intense that the Stock Exchange officials invoked upper lock and halted the trading after the index surged by five percent.

The officials locked the trading which now resumed after one-hour break as per rules.

There were futher gains as the trading resumed after one-hour break which saw the KSE-100 index further ballooning to 43,897, up 5.81 percent or 2,444 points.

Experts maintained that this was an all-time record opening high for the Pakistan Stock Exchange.

The investors were all out responding positively to the long-standing Staff-Level Agreement (SLA) worth $3 billion signed between between the International Monetary Fund (IMF) and Pakistan, which was announced on Friday.

Sectors propping up the 100 index were commercial banks with 436 points, fertilizer with 312 points, oil and gas exploration companies with 287 points, cement with 248 points and technology and communication with 196 points.

The most points added to the index was by HUBC which contributed 147 points followed by Engro with 145 points, UBL with 125 points, SYS with 118 points and OGDC with 109 points.

The staff-level agreement is subject to approval by the IMF Executive Board, with its consideration expected by mid-July.

The development is being seen as a major breakthrough for the government that was scrambling to secure the ninth review of its previous bailout programme and running from pillar to post to secure dollar inflows amid fast-depleting foreign exchange reserves.

A last-minute agreement with the IMF not only averts default, at least for a year, but also gives a much-needed economic roadmap for an economy in severe distress.

On Monday, investors were seen picking up stocks in droves with across-the-board buying witnessed in index-heavy sectors including auto assemblers, cement, chemical, commercial banks, oil and gas exploration companies and OMCs trading in green.

 

Reporter Ashraf Khan