Stocks surge on debt settlement talk

Pakistan Stock Exchange (PSX) on Tuesday experienced a notable surge in an earnings season rally, driven by expectations of approval of proposals by the International Monetary Fund (IMF) for resolving the circular debt crisis and addressing power tariff concerns.

In the morning, trading commenced on a lacklustre note when the KSE-100 index touched its intra-day low at 63,176.97 points. However, as the day progressed, optimism grew over S&P Global’s hint at a potential ratings upgrade for Pakistan, depending on collaboration with financial institutions to secure an IMF deal.

Additionally, upbeat data of exports and trade deficit for January 2024 contributed to the market’s positive sentiment. The index touched the intra-day high at 63,885.10 points well after midday. Notably, the exploration and production (E&P) sector saw significant gains and the bourse closed the day near the 64,000 mark.

“Stocks closed bullish on speculation about the IMF’s approval of the Special Investment Facilitation Council (SIFC) proposals for resolving the power sector circular debt issue and addressing tariff concerns,” said Arif Habib Corp MD Ahsan Mehanti.