The Pakistan Stock Exchange (PSX) continued its upward trend as the benchmark KSE-100 index surged nearly 600 points during trading on Tuesday. At 12:40 pm, the index was at 79,416.32 points, marking an increase of 591.99 points or 0.75%. This boost was fueled by across-the-board buying in index-heavy sectors such as automobile assemblers, cement, commercial banks, engineering, oil and gas exploration companies, OMCs, and refineries.
Index-heavy stocks including SHEL, SNGPL, OGDC, PPL, HBL, NBP, and MCB all traded in the green, contributing significantly to the index’s rise.
In a key development, Finance Minister Muhammad Aurangzeb announced that the necessary prior actions for the International Monetary Fund (IMF) program are nearly complete. He added that several structural benchmarks will also be met as Islamabad moves forward to secure a larger and more long-term deal. The minister’s remarks were made during an appearance on Aaj News’ program “News Insight with Amir Zia,” which aired Monday night.
Aurangzeb emphasized that the upcoming IMF deal should be considered a “Pakistan program” aimed at implementing structural reforms necessary for transforming the country’s economy.
On Monday, positive sentiment dominated the PSX, with the benchmark KSE-100 Index gaining nearly 400 points during the first trading session of fiscal year 2024-25, closing at 78,824.33 points. This positive trend continued into Tuesday, with the market’s momentum bolstered by the finance minister’s optimistic outlook regarding the IMF deal.
Globally, Asian equities showed mixed results as investors considered the implications of another potential Donald Trump presidency following a lackluster debate performance by the current president, Joe Biden. Speculation about Trump’s second term increased after the Supreme Court ruled that former leaders had “absolute immunity” from criminal prosecution for “official acts” taken while in office. However, they could still face criminal penalties for “unofficial acts.”
The Supreme Court’s decision comes as Trump faces criminal charges related to his attempts to overturn his 2020 election loss to Biden. While the trial is on hold pending judicial review of his immunity claims, this development has led to calls for Trump to step down due to concerns over his mental state. Despite these calls, Democrats are pushing for a formal vote next month to make Biden the party candidate for the upcoming election in November.
The uncertainty in the global political landscape, particularly in the US, has had a ripple effect on markets worldwide, including the PSX. However, local factors such as the progress on the IMF program and the positive sentiment among investors have played a more significant role in driving the recent gains in the KSE-100 index.
The Finance Minister’s statements about the IMF program highlight the government’s commitment to implementing structural reforms aimed at achieving long-term economic stability. These reforms are expected to attract further foreign investment and enhance investor confidence in Pakistan’s economic future.
The PSX’s recent performance indicates a robust investor sentiment, driven by the anticipation of favorable economic policies and international financial support. As Pakistan moves closer to finalizing the IMF deal, market participants are likely to remain optimistic, potentially leading to continued positive trends in the stock market.
