ISLAMABAD (PEN) : The Pakistan Stock Exchange (PSX) saw a robust buying rally on Monday, with the benchmark KSE-100 Index surging over 750 points during the early hours of trading. The rally, driven by optimism surrounding the International Monetary Fund (IMF) program, pushed the index past the 116,000 mark, as investor sentiment improved following positive developments on the economic front.
KSE-100 Index Performance
At 10:05 AM, the KSE-100 Index stood at 116,291.04 points, reflecting a gain of 754.88 points or a 0.65% increase. Key sectors that led the gains included automobile assemblers, commercial banks, oil and gas marketing companies (OMCs), with major stocks like MARI, OGDC, PPL, PSO, SNGPL, MCB, MEBL, and NBP showing positive movement.
Positive Outlook Driven by IMF Talks
The bullish trend at the PSX follows encouraging news about Pakistan’s negotiations with the IMF. Over the past week, the market remained positive, bolstered by expectations surrounding the resolution of the energy sector’s circular debt and the progress of the IMF’s Extended Fund Facility (EFF) program.
Nathan Porter, the IMF mission chief, confirmed that the IMF and Pakistan’s authorities had made “significant progress” in discussions regarding the first review of the EFF, which included topics such as climate reforms and the Resilience and Sustainability Facility (RSF). These developments are expected to support long-term economic stability, which in turn boosted investor confidence in the stock market.
International Markets and Global Sentiment
The positive sentiment in the PSX was mirrored across Asian markets, with most regional indices making gains. South Korea’s market surged by 1.6%, while Malaysia’s benchmark rose by 1.1%, marking its third consecutive day of gains. Taiwan’s main index also saw an uptick of more than 1%. This broader regional optimism was driven by China’s announcement of new measures to stimulate domestic consumption, including income increases and childcare subsidies, which analysts believe will strengthen the economy and, by extension, the regional markets.
However, despite these gains, global trade tensions remain a concern. U.S. President Donald Trump recently threatened a 200% tariff on European alcohol imports, adding uncertainty to global trade relations. Nonetheless, the market reaction to China’s economic measures helped offset some of these concerns, providing a more favorable environment for regional stocks.
Market Trends and Future Outlook
The PSX’s current performance indicates strong investor optimism, especially as the market anticipates further positive news related to Pakistan’s engagement with the IMF and domestic economic reforms. The KSE-100 Index’s recent growth underscores the potential for continued momentum, assuming the government’s policy measures align with market expectations and international financial support continues.
In the coming days, market watchers will be closely monitoring the developments surrounding the IMF’s ongoing support, as well as any shifts in global economic trends that could influence the local stock market.
