PSX rallies on hopes of IMF deal, circular debt resolution

KARACHI: The Pakistan Stock Exchange (PSX) opened the week on a positive note, gaining 663 points, or 0.57 per cent, to close at 166,199.59, as optimism over the International Monetary Fund review lifted investor sentiment, analysts said.

The stock market witnessed a positive session, with the benchmark index surging by up to 1,091 points during intraday trading.

“The market’s performance was also driven by the government’s initiative to address Pakistan’s power sector circular debt, though the Rs1.25 trillion deal is still awaiting final approval. Furthermore, the IMF described progress on the $7 billion loan programme as ‘strong’ despite the absence of a staff-level agreement,” Topline Securities stated.

The market’s gains were primarily driven by MARI, PSO, LUCK, OGDC, and SEARL, which collectively added 658 points to the index. However, FFC, EFERT, and HUBC exerted downward pressure, trimming 200 points.

Also read: Trade deficit halves from $48b in FY2022 to $24 in FY2024

“Optimism over the IMF review’s completion—despite its continuation in a virtual format—has strengthened following positive remarks from the IMF mission on Pakistan’s economic progress, boosting market sentiment,” Muhammad Awais Ashraf, Director Research at AKD Securities, told HUM News English.

The benchmark index closed on a positive note, driven by improved sentiment after the IMF expressed satisfaction with the first review of the Extended Fund Facility (EFF), Ismail Iqbal of Topline Securities stated.

“Optimism grew as investors anticipate reaching a staff-level agreement soon,” Ismail Iqbal added.

Oil & Gas Exploration Companies, Oil & Gas Marketing Companies, and the Cement sector were the major contributors in today’s session, collectively adding 634 points to the index.

A total of 506 million shares changed hands, with a turnover of Rs34 billion. PAEL led the volume chart, with 48 million shares traded.

The previous session had also ended on a positive note, largely on expectations that Pakistan would successfully clear the IMF review of the $7 billion bailout programme.