Bulls dominated the trading floor of the Pakistan Stock Exchange on Tuesday as shares gained nearly 800 points due to activity reported in the energy sector.
According to the PSX website, the KSE-100 index gained 659.15 points to stand at 63,662.06 at 1:42pm, up 1.05 per cent from the previous close of 63,002.91.
Continuing the upward momentum, the index eventually closed at 63,799.01, up by 796.10 or 1.26pc.
Mohammed Sohail, chief executive of Topline Securities, attributed the bullish activity to reports on 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 on proposals for the settlement of the 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.”
Awais Ashraf, director of research at Akseer Research, noted that the KSE-100 index rallied on the “probability of resolution of circular debt through one-time cash dividend and the likelihood of continuation of electricity at a subsidised rate for industries”.
