The Pakistan Stock Exchange (PSX) gained 321 points on Wednesday, following the assurance given by the UAE to the International Monetary Fund (IMF) regarding Pakistan’s loan program.
The benchmark KSE-100 index ended at 40,126 points, up from the previous day’s closing of 39,805 points, showing a gain of 321 points.
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Analysts at Arif Habib Limited noted that the PSX had a positive session during the day, with the KSE-100 index opening in the green and continuing to trade with positive sentiments throughout the trading session, reaching an intraday high of 368.05 points. This positive sentiment was due to media reports suggesting that the UAE had provided a written assurance to the IMF to provide $1 billion to Pakistan, unlocking the delayed tranche of the IMF’s Extended Facility Fund in the upcoming weeks.
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The assurance was given by UAE’s Minister of Economy Abdulla Bin Touq Al Marri during a meeting with IMF Managing Director Kristalina Georgieva on the sidelines of the spring meetings of the IMF and the World Bank in Washington. Al Marri assured the IMF that the UAE would support Pakistan’s reform program and help it overcome its economic challenges. The IMF also appreciated the UAE’s support for Pakistan and its commitment to economic stability in the region.
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Despite sluggish investor participation during the trading session, the main board’s volume remained dry, and third-tier companies continued to dominate the volume board. The sectors that contributed to the performance included Technology & Communication (+95.2 points), Commercial Banks (+81.1 points), E&P’s (+77.5 points), Fertilizer (+33.5 points), and Power Generation & Distribution (+9.6 points).
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Volumes increased from 59.7 million shares to 79.8 million shares (+33.8% DoD). The average traded value also increased by +88.7% to USD 9.0 million as against USD 4.75 million. Stocks that contributed significantly to the volumes were KEL, WTL, PPL, CNERGY, & SILK. The positive sentiment in the PSX is expected to continue in the upcoming trading sessions, driven by the positive news of the UAE’s support for Pakistan’s loan program.
