SOEs’ sell-off hopes toss index above 78,000

Despite the weakening of the rupee driven by uncertainty about the approval of a new loan by the IMF board this month, Pakistani shares staged a rally on Wednesday, snapping a three-day losing streak. This was aided by the start of the privatisation process for three power companies, propelling the benchmark KSE 100 share index above the 78,000 level. Ahsan Mehanti of Arif Habib Corporation attributed the recovery to a strong earnings outlook and significant progress on the privatisation front. Media reports suggest the Privatisation Commission had invited technical and financial proposals to appoint financial advisers for the divestment of state-owned Islamabad Electric Supply Company, Gujranwala Electric Power Company and Faisalabad Electric Supply Company.