The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index gained over 1,200 points to close above 81,000 on Monday as investors cheered the staff-level agreement between Pakistan and the International Monetary Fund (IMF).
The KSE-100 started the session with a strong buying spree that largely continued throughout the session.
At close, the benchmark index settled at 81,155.6, up by 1,211.51 points or 1.52%.
“This positive session was bolstered by Pakistan’s successful negotiation with the IMF,” brokerage house Topline Securities said in its post-market report.
In the E&P sector, POL surged after announcing a significant discovery at Jhandial 3, yielding an average of 715 barrels per day of oil and 8.9 million cubic feet per day of gas, Topline said.
Leading stocks including SYS, MCB, FFC, POL, HUBC, and ENGRO contributed significantly, collectively adding 599 points to the index’s rise, it added.
The sentiment – which has persisted ever since the budget saw no new taxes on the capital markets – was given a boost over the weekend as the IMF announced a new 37-month, $7-billion bailout for Pakistan on Friday night.
The announcement, largely in line with market expectations, gives another helping hand to the faltering economy that had earlier received a $3-billion loan – labelled the Stand-By Arrangement – just last year.
The IMF programme is seen as a roadmap for Pakistan that struggles to control expenditure, and has to service a mountain of debt that eat away at its tax revenue.
Despite the struggling state of the economy, KSE-100 companies have announced impressive profits, and many analysts believe share prices are still trading lower than their actual potential despite the record rise during fiscal year 2023-24.
However, during the previous week, the PSX had remained under pressure as investors opted to book profit on available margins.
On Friday, the KSE-100 closed nearly flat after recovering from an early-day 1,300-point loss the index had suffered after the Supreme Court’s verdict on reserved seats.
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