Stock market gets a boost by hopes of policy rate reduction, IMF approval

KARACHI: The Pakistan Stock Exchange (PSX) extended its upward trend yesterday (Wednesday), rising by almost 500 points as investor sentiment improved on hopes of a policy rate cut in the upcoming monetary policy announcement by the State Bank of Pakistan (SBP).

Stock market edges up marginally amid mixed performance

The KSE-100 index opened at its intra-day low of 78,488.88 points but steadily gained traction throughout the session. Positive investor sentiment was fuelled by August’s Consumer Price Index (CPI) inflation reading of 9.6 per cent, along with reassurances from the prime minister about meeting the International Monetary Fund’s (IMF) conditions for the $7 billion Extended Fund Facility (EFF).

Further support came from the finance minister’s update on progress towards securing external financing. Finance Minister Aurangzeb expressed optimism that the IMF Executive Board would approve the programme as scheduled, while also acknowledging the provincial governments’ role in the process.

Exports surge 14 pc as IMF uncertainty looms

By the close of the session, the KSE-100 index had increased 491.69 points, or 0.63 per cent, settling at 78,848.01 points. Market analysts predict that in the coming days, the market may experience range-bound trading, with potential dips seen as buying opportunities in sectors such as oil and gas, fertilisers, cement, and technology.