Bulls prevail at PSX as investor optimism rises on IMF deal

KARACHI: Bulls dominated the Pakistan Stock Exchange (PSX) on Wednesday as investor sentiment surged following the signing of the International Monetary Fund’s (IMF) staff-level agreement and the announcement of a new climate fund under the Resilience and Sustainability Facility (RSF).

The benchmark KSE-100 index gained 1,139.15 points (0.98 per cent), closing at 117,772.31, after reaching an intraday high of 1,588 points, analysts said.

“The market’s strong performance was primarily driven by the signing of the staff-level agreement (SLA) and the RSF arrangement, which bolstered overall investor confidence.

Additionally, news regarding the completion of the Reko Diq feasibility study further boosted sentiment, leading to gains in OGDC and PPL shares,” said Sana Tawfiq, Head of Research at Arif Habib Limited.

Topline Securities also noted that investor optimism surrounding the IMF agreement significantly contributed to the market rally.

PSX recovers slightly after previous day’s sharp sell-off

“The market closed in positive territory after a highly volatile session. Investors actively repositioned their portfolios, resulting in choppy trading patterns,” an analyst at Ismail Iqbal Securities commented.

The rally was largely driven by UBL, OGDC, PPL, MEBL, and MARI, which collectively added 883 points to the index.

Al Habib Capital stated that the market gained momentum following the IMF’s announcement of a 28-month Resilience and Sustainability Facility (RSF) arrangement and the completion of the first review of the 37-month Extended Fund Facility (EFF).

Additionally, OGDC and PPL completed the feasibility study for the Reko Diq project, which estimated a 37-year mine life. Meanwhile, the Ministry of Finance projected consumer price index (CPI) inflation to rise between 2-3 per cent in April, compared to 1-1.5 per cent in March, Al Habib Capital added.

Trading volume remained strong, with 355 million shares changing hands, amounting to a turnover of Rs37 billion. PAEL led the volume chart with 29 million shares traded.