Karachi, September 13, 2024 – The Pakistan equities witnessed a positive trend on Friday as equities surged by 315 points, buoyed by anticipation of the upcoming International Monetary Fund (IMF) meeting and a significant cut in the policy rate.
The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 79,333 points, rising from the previous day’s close of 79,018 points, marking a 0.40% increase.
Market analysts from Topline Securities Limited credited this bullish momentum at the Pakistan equities to two major developments: the central bank’s decision to cut interest rates by 200 basis points, which exceeded the market’s expectation of a 150 basis points reduction, and the inclusion of Pakistan’s economic agenda on the IMF Board of Directors’ calendar, with a meeting scheduled for September 25, 2024. Both factors were seen as key drivers of investor optimism.
The unexpected 200 basis points rate cut has been welcomed by investors as a potential boost for economic growth, as lower interest rates reduce borrowing costs for businesses and encourage investment. Meanwhile, the upcoming IMF meeting is viewed as a critical juncture for Pakistan’s economic outlook, with hopes that it will bring positive developments for the country’s fiscal stability and international relations.
The day began with strong upward momentum, as Pakistan equities quickly gained ground, reaching an intraday high of 80,017 points. This represented a gain of 999 points, or 1.27%, during early trading hours. However, profit-taking and selling pressure emerged as the index neared the 80,000 level, leading to a slight pullback. By the end of the trading session, the KSE-100 index settled at 79,333 points, still up by 315 points.
Trading activity was robust, with over 910 million shares changing hands, and the total value of trades amounted to Rs 21.2 billion. WorldCall Telecom (WTL) led the volumes chart with over 87.3 million shares traded, reflecting high investor interest in the stock.
Despite the pullback from intraday highs, the overall market sentiment remained positive, with investors looking forward to potential further gains in the coming weeks. The combination of the policy rate cut and anticipation surrounding the IMF meeting has created a favorable environment for equities, driving optimism for improved market conditions.
Looking ahead, analysts expect volatility to persist, but believe that continued positive developments on the IMF front and supportive monetary policies could sustain the market’s upward trajectory in the near term.