Karachi, September 4, 2024 – The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) surged by 492 points on Wednesday, driven by renewed optimism surrounding Pakistan’s ongoing loan negotiations with the International Monetary Fund (IMF).
The KSE-100 index closed at 78,848 points, up from the previous day’s close of 78,356 points.
Analysts at Topline Securities Limited noted that the KSE-100 index saw a gain of 492 points, or 0.63%, for the day, with the index reaching an intraday high of 534 points. This upward momentum was largely attributed to positive remarks from the Finance Minister, who indicated that the approval of Pakistan’s $7 billion Extended Fund Facility (EFF) with the IMF was on track. The minister’s statements regarding Pakistan’s progress in securing external financing assurances were seen as a significant factor boosting investor confidence.
The day’s gains were primarily driven by strong performances in key stocks. MARI Petroleum, Oil and Gas Development Company (OGDC), Engro Fertilizers (EFERT), Lucky Cement (LUCK), and Bank AL Habib Limited (BAHL) were among the top contributors, collectively adding 290 points to the KSE-100 index. The robust performance of these stocks underscored the market’s positive response to the anticipated financial support from the IMF, which is expected to stabilize the country’s economic situation.
Trading activity was particularly vibrant, with a total of 969 million shares changing hands, reflecting a significant trading volume. The day’s trading value amounted to Rs 17 billion, indicating strong market participation. WorldCall Telecom Limited (WTL) led the volume charts, with 234 million shares traded, highlighting its popularity among investors.
Market participants remain cautiously optimistic, with many viewing the IMF loan program as a critical factor in ensuring economic stability and supporting the government’s reform agenda. The positive sentiment was further bolstered by expectations that the inflow of IMF funds would help address Pakistan’s balance of payments challenges, ease pressure on the rupee, and support growth in key sectors.
Looking ahead, analysts believe that the market may continue to exhibit strength, provided that the external financing assurances materialize as expected. The approval of the IMF’s EFF and the subsequent release of funds are anticipated to further solidify investor confidence, potentially leading to continued gains in the KSE-100 index in the near term. However, market volatility may persist until the IMF deal is formally finalized.
