The Pakistan Stock Exchange (PSX) witnessed a strong rally on Wednesday. Investors reacted positively to Pakistan’s staff-level agreement with the International Monetary Fund (IMF). The benchmark KSE-100 Index soared by 1,139.15 points, closing at 117,772.31, marking a 0.98% gain.
The index hit an intra-day high of 118,220.88 points. Buying pressure remained strong across multiple sectors. Automobile assemblers, commercial banks, oil and gas exploration companies, power generation, and refineries saw significant gains. Heavyweights like OGDC, POL, PPL, HUBCO, ARL, PRL, PSO, and SNGPL ended in the green.
Topline Securities CEO Mohammed Sohail noted, “Market opened up 1,300 points after the IMF staff agreement.” The development boosted investor confidence and fueled optimism in the financial sector.
IMF Agreement and Economic Boost
On Tuesday, the IMF staff reached a staff-level agreement with Pakistan for a $1.3 billion arrangement. The lender also approved the first review of the ongoing 37-month bailout program. If the IMF’s Executive Board gives final approval, Islamabad will unlock the $1.3 billion under a 28-month climate resilience loan program.
Additionally, the agreement will free $1 billion under Pakistan’s $7 billion bailout program. This will raise total disbursements to $2 billion. The IMF delegation, led by Nathan Porter, held discussions in Karachi and Islamabad from February 24 to March 14 before finalizing the deal.
On Tuesday, the PSX faced some volatility but managed to recover, closing at 116,633.17 points. The positive sentiment carried into Wednesday, helping the market extend its rally.
Global Markets Show Mixed Trends
Global equity markets also saw mixed movements. Asian stocks tracked Wall Street’s gains as investors awaited clarity on US trade policies. US President Donald Trump hinted at some flexibility on upcoming tariffs, offering relief to financial markets.
Japan’s Nikkei gained 0.35%, while South Korea’s KOSPI climbed 0.37%. Australia’s stock index rose 0.76% following softer-than-expected consumer price data. Hong Kong’s Hang Seng increased by 0.8%, while Chinese blue chips remained flat.
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Oil markets saw temporary gains after Trump announced a 25% secondary tariff on countries purchasing oil and gas from Venezuela. However, security agreements in the Black Sea region eased concerns, limiting the price surge.
Back at home, trading activity at the PSX remained strong. The all-share index recorded 356.73 million shares, up from 268.09 million in the previous session. The total value of shares increased to Rs37.49 billion from Rs19.45 billion.
Pak Elektron led the volume chart with 29.18 million shares, followed by PSO with 26.88 million and Cnergyico PK with 17.47 million shares. A total of 438 companies traded, with 206 advancing, 167 declining, and 65 remaining unchanged.
The market rally reflected renewed investor confidence. Analysts expect the bullish trend to continue as Pakistan moves closer to securing crucial IMF funds. Further economic reforms and policy stability will be key to sustaining this momentum.
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