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Tuesday, October 15, 2024  
11 Rabi Al-Akhar 1446  

PSX sees significant surge as KSE-100 index jumps by nearly 800 points

Pakistan increased tax revenue target by record 40% to align with IMF objectives
File photo via APP
File photo via APP

The Pakistan Stock Exchange (PSX) saw a significant surge on Wednesday, with the benchmark KSE-100 index rising nearly 800 points.

As of 11:33 am, the index climbed by 628.14 points, or 0.79%, reaching 80,119.27 points from the previous close of 79,491.13 points.

Investor optimism was largely attributed to the anticipated approval of a $7 billion Extended Fund Facility by the IMF, with the Fund’s board set to meet on September 25 to discuss the loan for Pakistan.

The government, led by Prime Minister Shehbaz Sharif, had initially aimed for a deal in August, following the approval of a 37-month program in July.

To align with the IMF’s requirements, Pakistan increased its tax revenue target by a record 40% and raised energy prices.

The Director of Research at AKD Securities, Awais Ashraf, noted that the recent drop in oil prices had enhanced the likelihood of continued monetary easing by the State Bank of Pakistan (SBP), which maintained a positive real interest rate of 7.9%.

On September 12, the SBP had reduced its key policy rate by 200 basis points to 17.5%, down from 19.5%, amid calls for significant rate cuts.

Moreover, Mari Petroleum Company Limited significantly contributed to the index’s rise, adding 321 points after its recent 900% bonus adjustment.

The Director of research at Next Capital Limited, Awais Ashraf, pointed out that despite concerns over FTSE rebalancing, positive news regarding the IMF meeting had bolstered market sentiment.

The assurance of a $2 billion loan from the Asian Development Bank and expectations of inflation remaining below 8% for September also contributed to the positive outlook.

Farooq believed that market conditions were favorable, with foreign selling related to rebalancing anticipated to conclude by the end of the week.

Read more

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PSX drops more than 1,700 points

The 100-Index of the Pakistan Stock Exchange (PSX), on Friday, had gained 315.44 more points, a positive change of 0.40%, closing at 79,333.06 points against 79,017.62 points on the last working day.

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