Bullish momentum swept through the Pakistan Stock Exchange (PSX) as the International Monetary Fund (IMF) expressed its willingness to collaborate with the newly formed government, propelling the benchmark KSE-100 Index to soar by nearly 400 points during Friday’s trading session.
By 11:20 am, the benchmark index had reached 62,263.48 points, marking a substantial increase of 349.14 points or 0.56%. Notably, sectors dominated by heavyweights such as OGDC, PPL, and SNGPL demonstrated robust performance, trading in positive territory.
This surge in market sentiment follows the IMF’s affirmation of its intent to engage with Pakistan’s new leadership. In a press briefing, Julie Kozack emphasized the caretaker government’s commendable efforts in maintaining economic stability by adhering rigorously to fiscal targets and safeguarding the social safety net. Additionally, prudent monetary policies have been instrumental in curbing inflation and bolstering foreign exchange reserves.
In a significant development, reports surfaced that Pakistan is contemplating seeking a fresh loan of over $6 billion from the IMF to address looming debt repayments. Plans entail negotiating an Extended Fund Facility, with talks anticipated to commence in March or April.
The previous trading session at the PSX witnessed cautious optimism as investors awaited clarity on political and economic fronts, ultimately settling at 61,914.34 points.
Meanwhile, global markets experienced a buoyant atmosphere, with Asian shares climbing on the heels of record highs recorded in Japanese, US, and European markets. Tech stocks, fueled by demand for AI-powered chips, led the rally, spurred by robust profits reported by US chip giant Nvidia, signaling a burgeoning era in artificial intelligence advancement.