Intraday Report: KSE-100 jumps over 750pts

May 13, 2024 (MLN): Pakistan stocks extended their bullish rally on Monday, with its benchmark KSE-100 index jumping 765.88 points or 1.05% to 73,851.38 by 12:19pm.

Arif Habib Limited (AHL) in its Monday's Technical report noted that if 73,600 is breached, attention would shift towards the range of 74,000 to 74,400 points.

In today's session, KSE-100 index was supported by Oil & Gas Exploration Companies (219.3pts), Commercial Banks (132pts), Engineering (55.38pts), Cement (54.36pts), and Pharmaceuticals (47.98pts).

Companies adding points to the index were POL (75.56pts), PPL (62.3pts), ENGRO (57.37pts), OGDC (48.91pts), and BAHL (45.9pts).

Yesterday, Finance Minister Muhammad Aurangzeb said that formal discussions between Pakistan and the International Monetary Fund (IMF) will kick off from Monday for a longer and bigger program.

Highlighting the objectives behind the program, Aurangzeb emphasized the need to solidify the existing macroeconomic stability and implement structural reforms.

These reforms will primarily focus on three key sectors: the tax-to-GDP ratio, the state-owned enterprises (SOEs) reforms, and energy.

To note, the 100-index has gained 32,399 points or 78.16% during the fiscal year, whereas the ongoing calendar year has witnessed a cumulative increase of 11,400 points, equivalent to 18.25%.

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 the broader market, the All-Share index was at 47,943.91 with a net gain of 397.37 points.

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