Shares at PSX rally 900 points after IMF signals readiness to work with new govt

Published February 23, 2024
A snapshot of trading activity at the PSX on Friday. — Screenshot via PSX data portal
A snapshot of trading activity at the PSX on Friday. — Screenshot via PSX data portal

Bulls dominated the trading floor of the Pakistan Stock Exchange (PSX) on Friday as shares gained over 900 points, which analysts attributed to the International Monetary Fund (IMF) signaling its readiness to engage with the new government.

According to the PSX website, the KSE-100 index closed at 62,815.81 points, up 901.47 pr 1.46 per cent from the previous close of 61,914.34.

Earlier today, the IMF stated that it is looking forward to engaging with the new government on policies to ensure “macroeconomic stability and prosperity for all of Pakistan’s citizens”.

Shahab Farooq, director of research for Next Capital Limited, observed that the stocks showed a continued positive trend as the country “progressed towards the formation of the new government, along with the willingness of the IMF for negotiating a new programme with the newly elected government”.

He said that the appointment of the finance minister was another key development the market was waiting for.

He added that the market would closely follow key events in the near future, such as the formation of the government, the “reactions of the opposition”, the final review of the Stand-By Arrangement (SBA) with the Fund and the next monetary policy announcement.

Awais Ashraf, director of research at Akseer Research, echoed similar sentiments.

He said that the IMF’s assurance “to work with the new government for bringing economic stability in the country and bringing prosperity for people regardless of the uncertainty prevailing currently” helped restore investor confidence.

Abdul Azeem, head of research at Spectrum Securities, attributed the stock market’s “strong performance” to the IMF director showing a positive sign of working with the upcoming government. He said the development will pave the way for the next IMF programme.

“Furthermore, political stability looks on track,” Azeem told Dawn.com, noting that MPAs-elect in Punjab had taken oath earlier today while the Sindh Assembly’s maiden session had also been summoned.

He also highlighted that the KSE-100 recorded a volume of 197 million shares as compared to 172mn shares in the previous session, increasing 15pc on a day-on-day basis.

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

Opinion

Editorial

IMF’s projections
Updated 18 Apr, 2024

IMF’s projections

The problems are well-known and the country is aware of what is needed to stabilise the economy; the challenge is follow-through and implementation.
Hepatitis crisis
18 Apr, 2024

Hepatitis crisis

THE sheer scale of the crisis is staggering. A new WHO report flags Pakistan as the country with the highest number...
Never-ending suffering
18 Apr, 2024

Never-ending suffering

OVER the weekend, the world witnessed an intense spectacle when Iran launched its drone-and-missile barrage against...
Saudi FM’s visit
Updated 17 Apr, 2024

Saudi FM’s visit

The government of Shehbaz Sharif will have to manage a delicate balancing act with Pakistan’s traditional Saudi allies and its Iranian neighbours.
Dharna inquiry
17 Apr, 2024

Dharna inquiry

THE Supreme Court-sanctioned inquiry into the infamous Faizabad dharna of 2017 has turned out to be a damp squib. A...
Future energy
17 Apr, 2024

Future energy

PRIME MINISTER Shehbaz Sharif’s recent directive to the energy sector to curtail Pakistan’s staggering $27bn oil...