Energy stocks pull up KSE-100

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The benchmark KSE-100 index rebounded on Thursday after witnessing a sell-off for the last three days, due to rise in energy sector stocks.

The index closed at 39,838.33 points, up 495.44 points or 1.26 per cent. It reached an intraday high of 583.45 points, or 1.48pc, around 2:30pm.

The energy sector’s performance comes on the back of the Finance Division notifiying a 10-member committee to work on a circular debt settlement plan through cash and non-cash releases or adjustments.

Media reports quoting the power division said that the circular debt which stood at Rs2.253 trillion by end of September last year had now reached Rs2.437tr, showing an increase of Rs185bn.

Earlier this week, Prime Minister Shehbaz Sharif had directed authorities to take concrete steps to reduce circular debt. Later, Defence Minister Khawaja Asif had shared that the government would approach the provinces for the implementation of a policy aimed at saving energy, which among other measures, would reduce the timings of markets, restaurants and wedding halls.

Shares opened in the red this week, falling by more than 1,900 points in the last three days. Analysts have attributed the bearish trend to the political crisis in Punjab, along with the deteriorating economic situation.