PSX continues positive trend, gains over 400 points

KARACHI: The benchmark KSE-100 index at the Pakistan Stock Exchange gained 447 points on Wednesday and it is currently trading at 44, 044 points.

Earlier, on Monday morning, records were broken when the KSE-100 shot up by over 2000 points within the first few hours of trading, causing a halt when the index reached its upper circuit limit.

The continued positive trend comes after Pakistan secured a last minute staff-level deal with the IMF for a $3 billion stand-by arrangement.

The agreement – still subject to approval by the IMF executive board in mid-July – was finalised last Friday.

The $3 billion IMF loan was greater than anticipated as Pakistan was hoping to unlock the remaining $2.5 billion from a now expired $6.5 billion bailout package.

The removal of import restrictions by the State Bank of Pakistan, in line with the IMF’s prerequisite conditions, is also seen as a major factor for the positive spike of the stock market.

The stock market is expected to rally as loans from other lenders including the World Bank and friendly countries continue to come in to boost Pakistan’s foreign exchange reserves and pay some crucial debts.