The Pakistan Stock Exchange (PSX) showed a significant rebound as the benchmark KSE-100 Index closed higher by over 3.5% during trading on Friday. The bullish momentum was observed in the early trading hours, pushing the KSE-100 to an intra-day high of 107,541.45 points. At close, the index settled at 107,174.64, up by 3,647.82 points or 3.52%.
This recovery was on account of optimism surrounding the upcoming IMF Executive Board meeting scheduled to consider the Extended Fund Facility programme, where the market expects smooth approval. A decrease in cross-border hostilities also provided a stimulus to investor sentiment,” brokerage house Topline Securities said in its post-market report. Top positive contributions to the index came from companies including LUCK, MARI, HUBC, HBL, FFC, PPL, OGDC, ENGROH, EFERT, and PSO, collectively contributing 1,923 points, according to Topline.
Despite the daily gain, the KSE-100 Index saw a weekly decline of 7.2%. “This decline was largely due to the escalation of tension between Pakistan and India, which kept investors on edge. Throughout the week, individuals and mutual funds largely sold shares, which local institutions, including banks, companies, and the insurance sector, absorbed,” Topline added.
Imf optimism boosts PSX performance
In a key development, the IMF board is scheduled to meet on Friday (May 9) to consider the “first review under the Extended Fund Facility (EFF) programme, a request for modification of performance criteria, and a request for an arrangement under the Resilience and Sustainability Facility (RSF).” The board would consider the first review under the $7 billion EFF programme and a new arrangement of $1.3 billion under the RSF. Upon approval, Pakistan will have access to about $1 billion (SDR 760 million) under the EFF, bringing total disbursements under the program to about $2 billion.
Additionally, the country would unlock $1.3 billion under the new climate resilience loan program, spanning 28 months. Meanwhile, on Thursday, the KSE-100 Index had a severe drop, shedding nearly 6,500 points to settle at 103,526.82 amid rising tensions between Pakistan and India. Volume on the all-share index decreased to 516.29 million from 653.55 million recorded in the previous close, and the value of shares declined to Rs.28.84 billion from Rs.35.44 billion in the previous session.
WorldCall Telecom led the volume chart with 47.09 million shares, followed by Cnergyico PK with 33.59 million shares, and Sui South Gas with 29.29 million shares. Out of the 441 companies traded, 300 registered an increase, 99 recorded a fall, and 42 remained unchanged. The local currency depreciated 0.07% in the inter-bank market on Friday, settling at 281.71, a loss of Re0.19 against the US dollar.
The market’s future performance will closely hinge on the outcomes of the IMF board meeting and geopolitical developments in the region.
