The Pakistan Stock Exchange (PSX) achieved a significant milestone on Tuesday, surpassing the 54,000-point mark. This surge in the KSE-100 index, which rose by 417.69 points (0.78%) during intraday trading to reach 54,278.05 points, was fueled by optimistic expectations from the ongoing negotiations with the International Monetary Fund (IMF).
Several factors influenced the market’s bullish trend. These include anticipating a rate cut in monetary policy and robust company profitability. Additionally, the announcement of general elections in Pakistan has raised investor hopes for political stability, further bolstering the market’s performance.
IMF’s Role in Market Confidence
The IMF review mission’s presence in Pakistan, aimed at completing the first review under the $3 billion loan program, has played a crucial role in boosting market sentiment. Investors are keenly watching the possibility of the IMF releasing the second tranche of $700 million by the end of December 2023. The release of this tranche hinges on reaching a staff-level agreement by the end of the talks.
This uptick in the PSX follows a previous gain of 737.33 points (1.39%) the day before, culminating in a closing point of 53,860.37. The consistent positive trend reflects the market’s response to the economic measures and international negotiations in Pakistan.