Intraday Report: KSE-100 index tops 75,000 level

May 15, 2024 (MLN): Pakistan stocks continued to roar on Wednesday, with the benchmark KSE-100 index gaining 562.30 points or 0.75% to 75,093.49 as of 10:20am.

Investors have welcomed the initiation of discussions between Pakistan government and International Monetary Fund (IMF) mission on further engagement with the Fund, with the country looking for a larger and longer deal.

Wall Street bank Citi expects Pakistan to reach an agreement with the IMF for a new four-year program of up to $8 billion by end-July, and recommends going long on the country’s 2027 international bond.

Moreover, auto sales numbers for April 2024 have also played their due role in boosting investors' sentiments.

Pakistan's total car sales increased by 2.35x YoY and 12.1% MoM in April 2024. Meanwhile, passenger car sales were recorded at their highest level in 14 months.

To note, the 100-index has gained 33,610 points or 81.08% during the fiscal year, whereas the ongoing calendar year has witnessed a cumulative increase of 12,612 points, equivalent to 20.19%.

The rally has been further fueled amid bets for a rate cut as early as June, following a fourth consecutive decline in weekly inflation.

Accordingly, the CPI-based inflation for May is expected to fall to about 14-15% YoY, expanding real interest rates to 7-8%.

In Wednesday's trading session, KSE-100 index was supported by Commercial Banks (207.36pts), Cement (119.32pts), Fertilizer (64.38pts), Oil & Gas Exploration Companies (60.7pts), and Technology & Communication (34.42pts).

Companies adding points to the index were LUCK (90.15pts), UBL (43.49pts), MEBL (42.19pts), ENGRO (38.22pts), and OGDC (36.63pts).

In the broader market, the All-Share index was at 48,710.79 with a net gain of 399 points.

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