Opening Bell: KSE-100 Index recovers by over 700 points

June 26, 2023 (MLN): Pakistan stock exchange (PSX) on Monday opened on a bullish note as investors responded positively to Government’s last-ditch effort to secure stalled IMF tranche.

This led the KSE-100 index to gain over 712 points or 1.78% [09:58 PST] so far. The index is currently trading at a 40,778.00 point level.

Sectors propping up the Index were Commercial Banks with 146 points, Cement with 138 points, Oil & Gas Exploration Companies with 109 points, Power Generation & Distribution with 109 points and Technology & Communication with 103 points.

The most points added to the Index was by HUBC which contributed 96 points followed by OGDC with 57 points, SYS with 57 points, PPL with 50 points and LUCK with 50 points.

To note, Pakistan’s economic team held detailed discussions with the IMF team to complete the pending review over the last three days and agreed on the following to resume IMF deal.

Amount in PKR Billion

The meeting comes with less than a week before the expiry of the Extended Fund Facility (EFF) approaching on June 30, 2023, with speculation rising.

Notably, the bounce also comes from a major support zone looking from a technical perspective, as mentioned on last week's close.

KSE-100 Monthly time-frame chart

The index closed last week at a major support zone that remained intact for the past 12 months, positioned just below the VWAP.

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