The Pakistan Stock Exchange (PSX) started the third week of the month on a high note as it crossed the 81,000 points after by the newly signed International Monetary Fund (IMF) deal.
The KSE-100 index increased 1276.91, or 1.6%, from the previous closing of 79,944.09 to 81,221.00 points.
The market is responding favorably to the staff-level deal with the IMF, since this is supportive of ongoing macroeconomic stability and reforms, according to Raza Jafri, chief executive of EFG Hermes Pakistan.
“Investors may also be keeping an eye on the next monetary policy, with more interest rate cuts expected across 2H 2024,” he continued.
The same opinions were voiced by Awais Ashraf, director of research at AKD Securities. He said that “investor interest has been enhanced” by the staff-level deal with the IMF.
He emphasized, “Sectors that benefit from monetary easing and structural reforms are likely to gain the most in coming days.”
The “completion of the IMF deal,” according to Chase Securities’ director of research Yousuf M. Farooq, is another factor contributing to the positive trend.
He said, “The market should rerate higher going forward due to economic stability, lower inflation, and interest rates.”
The potential privatization of state-owned enterprises (SOEs)—most notably, Prime Minister Shehbaz Sharif’s pledge to start the bidding process for Pakistan International Airlines (PIA) in August—has bolstered investor confidence, which analysts credit for the record high.
The strengthening of the Pakistani rupee versus the US dollar and the anticipation of future negotiations with the IMF have also made a substantial contribution to the positive outlook.
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