Stocks rose on Monday as investors priced in an impending tranche from the International Monetary Fund (IMF) and a stabilizing regional backdrop amid earnings season momentum, with a stable rupee and rising oil prices supporting risk appetite.
During the session, the Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index climbed to an intraday high of 163,769.83, gaining 2,138.1 points or 1.32% and registering a low of 161,892.59, reflecting a gain of 260.86% or 260.86%.
“Bullish activity witnessed strong earnings outlook and impending receipt of IMF tranche. Rupee stability and rising global crude prices played a catalyst role in bullish activity at PSX,” said Ahsan Mehanti, Managing Director and CEO of Arif Habib Commodities.
The International Monetary Fund’s board is expected to approve a $1.2 billion disbursement to Pakistan, and State Bank Governor Jameel Ahmad told analysts last week that a board meeting is likely to release funds under both the Extended Fund Facility and the Resilience and Sustainability Facility.
On the macro front, weekly inflation as measured by the price sensitive indicator rose 0.12% in the week to October 30, bringing the SPI to 335.53 from 335.14; on a year-on-year basis, the SPI increased by 5.05%, according to the Pakistan Bureau of Statistics.
After a losing streak earlier in the week, the market turned higher on Friday, gaining 4,898.86 points (3.13%) to close at 161,631.73 from 156,732.87. Analysts expect range-bound trade in the near term as investors track IMF timing, earnings announcements and developments in the Pakistan-Afghanistan ceasefire.
