The Pakistan Stock Exchange (PSX) continues its bullish momentum as the benchmark KSE-100 Index surged by almost 1,000 points during Monday’s opening trading hours.
By 11:10 am, the benchmark index reached 72,863.83, marking an impressive increase of 961.74 points or 1.34%. This surge in the market was attributed to widespread buying across various sectors, including automobile assemblers, cement, chemicals, commercial banks, oil and gas exploration companies, and OMCs. Notable index-heavy shares such as PSO, SSGC, SNGPL, OGDC, PPL, and NBP showed significant gains.
Investor sentiment was notably buoyed by optimism surrounding a potential deal with the International Monetary Fund (IMF) and the recent decrease in inflation figures, which reignited hopes for a reduction in the key policy rate.
A key development contributing to market optimism is the anticipation of an IMF mission visiting Pakistan this month to discuss a new programme. This news came ahead of Islamabad’s initiation of its annual budget-making process for the upcoming financial year. Pakistan recently concluded a short-term $3 billion programme with the IMF, which averted sovereign default. However, the government, under Prime Minister Shehbaz Sharif, has emphasized the necessity for a fresh, longer-term programme.
According to the IMF, the mission’s agenda includes discussions on the FY25 budget, policies, and reforms, aiming for the welfare of all Pakistanis.
On a global scale, Asian stocks experienced significant gains, reaching their highest levels in over a year. This surge was primarily fueled by renewed expectations of the Federal Reserve easing rates this year. Additionally, the yen weakened following last week’s strong surge, which was suspected to be a result of Tokyo’s currency intervention.
While Japan observed a holiday, markets in mainland China commenced trading on a positive note after an extended break. MSCI’s broadest index of Asia-Pacific shares outside Japan reached its highest level since February 2023, gaining 0.53%. Furthermore, China’s blue-chip index surged by 1.5%.
In the previous week, the PSX faced pressure due to selling predominantly by local investors and institutions. The benchmark KSE-100 index witnessed a decline of 840.65 points on a week-on-week basis, closing at 71,902.09 points.
