PSX weekly roundup: SBP’s rate cut, IMF’s optimism resulted in a bullish week

KARACHI: Pakistan’s equities closed the week in green on optimism around the State Bank of Pakistan’s (SBP) interest rate cut and the upcoming meeting between Pakistan and the International Monetary Fund (IMF) on September 25 to finalise the $7 billion Extended Fund Facility (EFF) program.

The benchmark KSE-100 Index rose 435.33 points or 0.6 per cent from the opening stage of 78,897.72 points to close the week at 79,333.05 points, Mettis Global reported.

PSX weekly roundup: market stays flat as investors await monetary policy decision

In the beginning of the week, the investor sentiment was mixed on expectations of SBP’s Monetary Policy Committee’s (MPC) decision as well as the looming uncertainty on the approval of IMF’s loan. However, by Thursday, with the SBP’s decision becoming clearer, and the Finance Minister Muhammad Aurangzeb announcement, the market rose up.

The central bank delivered a 200 basis point cut, bringing the policy rate down to 17.5 per cent from 19.5 per cent. And the Prime Minister Shehbaz Sharif and FM Aurangzeb both said that all requirements for IMF’s approval have been fulfilled.

As a result, on Friday, the index crossed the 80,000 points limit minutes into trading. Some of these high gains were lost towards the end of the trading session, but the index still managed to close above the opening level on Monday.

Delving deeper into the market, throughout the week, the benchmark KSE-100 index traded in a range of 1,471 points – highest at 80,017 points and lowest at 78,546 points. The average traded volume was recorded at 606.74 million shares worth Rs 15.24 billion, Mettis Global said.

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Sector-wise, top positive contributors were cement, fertilizer E&P companies, leather & tanneries, and pharmaceutical sectors. On the other hand, most negative contributions came from commercial banking, automobile, power generation & distribution, and refineries sectors.

Foreign investors were net sellers during the week with $7.54 million worth of equities sold, while individuals remained the dominant buyers, with a net investment of $7.22 million.