With significant gains on Monday, stocks confidently ushered in the year 2023; yet, with the macroeconomic backdrop remaining unaltered, investors are haunted by the possibility of a default as foreign reserves are being depleted and lenders continue to be tight-lipped.

The Pakistan Stock Exchange's (PSX) KSE-100 index ended the day at 40,815.90 points, an increase of 395.45 points or 0.98%.

According to a report by Arif Habib Limited, the market started off in the red but swiftly turned around to reach an intraday high of 607.06 points.

Investor sentiment remained positive throughout the trading session as a result of good news regarding the ninth review of the International Monetary Fund (IMF) tranche, according to the brokerage. However, the exploration and production sector continued to command attention due to the news of the circular debt resolution.

Overall, volumes were strong, with the energy industry and refineries continuing to command attention.

Commercial banks (149.0 points), fertiliser (147.2 points), energy (+108.3 points), oil marketing businesses (+33.8 points), and refinery (+21.8 points) were among the sectors that contributed to the strong performance.

Volumes dropped from 284.5 million to 242.2 million shares (-14.9%), down from 284.5 million. Additionally, the average transaction value dropped from $35.1 million to $32.1 million, an 8.6% decline.

Pakistan Petroleum Limited, Pakistan Refinery Limited, Hascol Petrol, Cnergyico PK Limited, and WorldCall Telecom Limited were among the stocks that made up a sizeable portion of the volumes.

According to a note from Topline Securities, the market's anticipation of a breakthrough on the circular debt front and the government's readiness to raise the gas tariff were the main drivers of the purchasing momentum.

Engro Corporation, Pakistan Petroleum Limited, United Bank Limited, Engro Fertilizer, and Fauji Fertilizer each contributed 260 points to the index during the day, while stocks in the banking, exploration and production, and fertiliser sectors contributed positively.

Hub Power Company, Lucky Cement, and System Limited, on the other hand, saw a combined loss of 65 points. With 14.9 million shares traded, PPL topped the volumes leaderboard.