- PSX gains over 1,000 points, hitting a new high.
- Boost driven by $7 billion IMF deal.
- Analysts predict economic stability and reforms.
The Pakistan Stock Exchange (PSX) experienced a significant surge on Monday as the market climbed more than 1,000 points, fueled by a new $7 billion deal with the International Monetary Fund (IMF). The benchmark KSE-100 index soared to 81,306.16 points, marking an increase of 1,362.07 points or 1.70% during intraday trading, compared to the previous close of 79,944.10 points.
Raza Jafri, CEO of EFG Hermes Pakistan, highlighted that the market’s positive response was largely due to the staff-level agreement with the IMF, which promises a $7 billion program over 37 months. This agreement is anticipated to bolster macroeconomic stability and facilitate essential reforms in areas such as taxation and energy, as well as ensure more equitable spending between the central and provincial governments.
Ahsan Mehanti, an analyst at Arif Habib Corp, noted that the stocks reached an all-time high as investors weighed the implications of the IMF agreement on the $7 billion Extended Fund Facility. He also pointed out that speculation about easing interest rates from the State Bank of Pakistan (SBP) contributed to the bullish activity observed during the earnings season.
The remarkable rise on Monday followed a volatile session on Friday when the PSX closed at 79,944.10 points, down by 48.26 points or 0.06%, after the Supreme Court’s decision on reserved seats. The new IMF deal has evidently revitalized investor confidence, driving the market to historic peaks.
