Bulls dominated the trade floor on Tuesday as shares at the Pakistan Stock Exchange (PSX) gained over 600 points during intraday trade.
At 1:42pm, the KSE-100 index gained 659.15 points, or 1.05 per cent, to stand at 63,662.06 from the previous close of 63,002.91.
Mohammed Sohail, chief executive of Topline Securities, attributed the bullish momentum to reports about the energy sector’s circular debt coupled with “pre-election buying”.
Several media outlets have reported that the caretaker government has begun negotiating with the International Monetary Fund (IMF) on proposals for the settlement of circular debt.
Faran Rizvi, head of equity sales at JS Global, said, “The market is likely to experience a rally in the oil and gas sector due to the resolution of the circular debt issue.”
However, he advised caution to investors as the upcoming elections remain a “significant market driver”, urging them to anticipate a “potential short correction before the polls”.
“In the long term, our outlook on the PSX is bullish.” he said.
More to follow
