PSX rises 764 points as IMF tranche inches closer

Published August 15, 2022
<p>A snapshot of trading activity at the Pakistan Stock Exchange. — Photo via PSX website</p>

A snapshot of trading activity at the Pakistan Stock Exchange. — Photo via PSX website

The Pakistan Stock Exchange (PSX) continued its positive momentum on Monday on the back of the International Monetary Fund’s (IMF) letter of intent and other expected inflows.

According to the PSX website, the benchmark KSE-100 index gained 764.25 points, or 1.78 per cent, to close at 43,621.82 points.

It reached an intraday high of 43,659.04 points shortly before the close.

Head of Research at Intermarket Securities, Raza Jafri, said the index opened on a strong note because of positive developments over the weekend including the letter of intent (LOI) from the IMF and assurance of further support from Saudi Arabia.

“The market is still quite cheap on valuations,” he added.

Ahsan Mehanti of Arif Habib Corporation attributed the bullish trend to the rupee’s strong recovery and reports of renewal and a further addition to a package from Saudi Arabia.

He also attributed it to the finance minister’s announcement of a $1 billion investment from the United Arab Emirates in the PSX as well as the IMF’s letter of intent.

LOI received from IMF

Finance Minister Miftah Ismail had told Dawn that an LOI had been received early on Friday from the IMF for the revival of the programme under the staff level agreement (SLA) and memorandum of economic and fiscal policies (MEFP) signed last month.

“We are going through the LOI, would sign and send [it] back to the IMF anytime soon and look forward to (executive) board meeting later this month for approval,” he said.

The IMF has convened a meeting of its executive board on August 29 to approve a bailout package for Pakistan, including disbursement of about $1.18bn, before the close of the current month.

The move follows the completion of the $4bn in bilateral financing from four friendly nations and would pave the way for immediate disbursement, expected to be in Pakistan’s account before the end of working hours on August 31.

Sources said the board meeting was convened after Saudi Arabia, the United Arab Emirates, Qatar and China confirmed to the IMF that they had completed arrangements for $4bn in bilateral financing to Pakistan, which was the last hitch to the bailout package after completion of all the prior actions agreed under the SLA. The IMF board’s clearance was expected to reverse continuously depleting foreign exchange reser­ves, strengthen the Pakistani rupee and support balance of payments.

Now you can follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

UNGA speech
25 Sep, 2022

UNGA speech

CRISES test a nation’s resilience but also provide opportunities to rise and move forward. Prime Minister Shehbaz...
Dar’s return
Updated 25 Sep, 2022

Dar’s return

Dar will now be expected by his party to conjure up fiscal space for the govt to start spending ahead of the next elections.
Iran hijab protests
25 Sep, 2022

Iran hijab protests

FOR over a week now, Iran has been witnessing considerable tumult after a young woman died earlier this month in the...
Post-flood economy
Updated 24 Sep, 2022

Post-flood economy

WITH a third of the country — especially Sindh and Balochistan — under water, over 33m people displaced, and...
Panadol shortage
24 Sep, 2022

Panadol shortage

FROM headaches to fever to bodily pain — paracetamol is used ubiquitously in Pakistan as the go-to remedy for most...
Star-struck cops
24 Sep, 2022

Star-struck cops

IN this age of selfies and social media, it is easy to get carried away in the presence of famous people, even if ...