Pakistan’s stock market surges to record high following IMF deal

On Monday, Pakistan’s stock market experienced a significant boost after the country secured a $7 billion loan agreement with the International Monetary Fund (IMF) over the weekend.

The benchmark KSE-100 Index soared by 1,211.51 points, or 1.52 per cent, closing at an all-time high of 81,155.60. This surge reflects investor confidence in the economic stability promised by the new IMF programme.

According to the IMF, the programme aims to build on the macroeconomic stability achieved over the past year. The successful staff-level agreement is expected to create a conducive environment for financial inflows from other multilateral institutions, bilateral partners, and friendly countries. These inflows are anticipated to bolster Pakistan’s foreign exchange reserves and alleviate external pressures.

Additionally, the programme will provide much-needed clarity and certainty regarding the economic roadmap, alongside structural reforms over the next three years.

During the trading session, the index fluctuated within a range of 684.97 points, hitting an intraday high of 81,428.43 points and a low of 80,743.46 points. The total trading volume for the KSE-100 Index was 219.58 million shares.

Of the 100 companies listed on the index, 65 closed higher, 30 fell, and 5 remained unchanged. The sectors driving the index upwards included Commercial Banks (+295.96 points), Fertilizer (+203.92 points), Oil & Gas Exploration Companies (+193.68 points), Technology & Communication (+165.01 points), and Cement (+124.38 points).

Conversely, sectors that negatively impacted the index included Tobacco (-20.20 points), Refinery (-4.40 points), Paper, Board & Packaging (-2.88 points), Transport (-2.30 points), and Textile Spinning (-1.42 points).