LAHORE - The KSE 100-index of Pakistan Stock Exchange finally bounced back on Wednesday with a recovery of 984 points to close in green at 37,647 points after making a high of +1,041 points. The rally, which was long overdue given highly oversold levels, could be attributed to latest comments by Finance Minister Asad Umar where he has raised hope that the government would be able to fund its $12 billion external financing needs for the year through various sources including IMF. The first tranche by the IMF could possibly be relatively larger to the tune of $1.5 - 3 billion and should be received by next 2 months amid depleting foreign reserves. Besides, the government is also looking forward to World Bank (WB) & Asian Development Bank (ADB) for another $5 billion for balance of payment support during FY19. Moreover, the Federal Board of Revenue (FBR) has increased the regulatory duty (RD) by 5 to 10 per cent on the import of 570 luxury items with an aim to curtail imports and strengthen the local industry.

PPL (+2.78%), OGDC (+1.65%), HBL (+1.35%), ENGRO (+3.14%), MCB (+0.29%), POL (+2.02%), UBL (+2.94%), FFC (+2.36%) and HUBC (+2.87%) contributed +312 points to the index. Furthermore, HUBC intends to commence due diligence for the acquisition of 37% stake in Thal Nova Power as per the material information issued by PSX. Traded volumes slightly improved by 7% DoD to 194m shares while value traded inched up to $45m. Top stocks by volume were TRG (+5%), LOTCHEM (+7.40%) and BOP (+5.59%).

 Moving forward, experts expect investors' sentiment to remain slightly positive in the short term. However, the KSE100 performance shall remain volatile and choppy along with selling pressure from foreign investors.