Key points:
- PSX hit 81,112.73 points on IMF deal news.
- KSE-100 index rose by 1,168.64 points.
- IMF deal seen as key for economic stability.
- Analysts cite rate cut speculation for market boost.
The Pakistan Stock Exchange (PSX) commenced the week on a high note, surpassing the 81,000 mark, driven by the optimism surrounding the newly-signed deal with the International Monetary Fund (IMF).
The benchmark KSE-100 index saw a significant increase, climbing by 1,168.64 points or 1.46% to reach 81,112.73 points during intraday trading. This marked a notable rise from the previous close of 79,944.10 points.
EFG Hermes Pakistan’s CEO Raza Jafri, while speaking to Geo.tv, said the market is reacting positively to the staff-level agreement with the IMF for a $7 billion program spanning over 37 months. About the surge in market analysts said that:
“This is expected to help support macroeconomic stability and help Pakistan conduct necessary reforms in areas such as taxation, energy, and more equitable spending between the center and the provinces,”
Analyst Ahsan Mehanti at Arif Habib Corp echoed this sentiment, noting that stocks reached an all-time high as investors weighed the implications of the IMF staff-level agreement on the $7 billion Extended Fund Facility. “Speculation on easing SBP (State Bank of Pakistan) rates played a catalyst role in the bullish activity of the earnings season,” he added.
The stocks had witnessed a volatile session last Friday following the Supreme Court’s decision on reserved seats, resulting in a slight decrease of 48.26 points or 0.06%, closing at 79,944.10 points.
Also Read: Pakistan Concludes New $7 Billion Loan Deal with IMF.