In a remarkable display of upward momentum, the benchmark KSE-100 index at the Pakistan Stock Exchange (PSX) risen to a new all-time high by crossing the 65,000 milestone on Friday.
The flow was fueled by a wave of bullish activity during intraday trading, driven by positive indicators in the national economy. Investors were particularly sustained by the anticipation of the imminent release of the second loan tranche from the International Monetary Fund (IMF).
As of 11:00 am, the KSE-100 index stands at an impressive 65,886 points, reflecting a substantial gain of 1,168 points during intraday trading. This surge underscores the resilience and robust performance of the Pakistani stock market.
Market analysts attribute the positive market sentiment to the encouraging economic developments leading up to the scheduled review by the IMF’s Executive Board on January 11, 2024.
The board is expected to deliberate on approving the release of $700 million under the standby arrangement (SBA). Last month, Pakistan and the IMF had successfully reached a staff-level agreement under the $3 billion SBA, further contributing to the optimistic outlook.
The expectation surrounding the IMF’s decision has been a driving force behind the recent rally, as investors closely monitor the economic trajectory. The scheduled review on January 11 holds significant importance, marking a crucial step in securing the financial support earmarked for Pakistan’s economic stability.
The positive market dynamics also align with broader economic indicators, signaling an improved outlook for Pakistan’s fiscal health. The upcoming release of funds is anticipated to provide a much-needed boost to various sectors, fostering economic growth and stability.
It’s worth noting that the Executive Board’s release schedule had been outlined until December 12, with Pakistan’s case obviously absent from the agenda. However, the recent surge in the stock market reflects investor confidence in the positive outcome of the impending review.
As the nation awaits the outcome of the IMF’s decision, the PSX’s record-breaking performance serves as a testament to the resilience of Pakistan’s financial markets and their ability to navigate challenging economic landscapes.
Investors are keenly observing developments, and the market is prepared for further fluctuations as the January 11 review approaches.
