Pakistan Stock Exchange Surpasses 115,000 Points Amid Banking Sector Upgrade and IMF Talks
The Pakistan Stock Exchange (PSX) surged past the 115,000-point milestone, fueled by Moody’s upgrade of the banking sector and encouraging progress in IMF negotiations.
This rally significantly boosted investor confidence, reinforcing optimism about economic recovery. The KSE-100 index climbed 1,009.70 points, reflecting a 0.89% increase, and closed at 115,094.23 points, after hitting an intraday high of 115,247.39 points.
Market Performance and Trading Highlights
- Trading volume: 382 million shares
- Turnover: Rs25.4 billion
- Top traded stock: Bank of Punjab (BOP) with 48 million shares
Key sectors, including Fauji Fertilizer (FFC), Pakistan State Oil (PSO), Lucky Cement (LUCK), Engro Holdings (ENGROH), and Mari Petroleum (MARI), collectively contributed 506 points to the index’s rise.
Read More: PSX Sees Rapid Gains Post IMF Deal
Factors Driving the Rally
- Moody’s Banking Sector Upgrade: Pakistan’s banking sector outlook was revised from “stable” to “positive”, boosting market sentiment.
- Economic Indicators: Improved economic data contributed to investor confidence.
- Energy Sector Optimism: Speculation about resolving circular debt in the energy sector further encouraged investors.
- IMF Negotiations:
- An IMF delegation, led by Mission Chief Nathan Porter, is reviewing the $7 billion Extended Fund Facility.
- A successful review could result in Pakistan receiving a $1 billion tranche, stabilizing the economy.
- Global Oil Prices: The increase in global oil prices also played a role in sustaining investor interest.
Market Outlook
Rising trade volumes and heightened investor activity signal long-term market stability. The implementation of economic reforms continues to restore confidence, with positive effects reflected in the stock market’s performance.
