Tag: Pakistan Stock Market

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

    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).

  • PSX witnesses largest single-day jump with gain of 3,410 points

    PSX witnesses largest single-day jump with gain of 3,410 points

    Pakistan’s benchmark stock index (PSX), the KSE-100, experienced an unprecedented surge on Thursday, marking its most significant gain in a year.

    This rally follows the government’s announcement of the 2024-25 budget, which alleviated concerns regarding potential increases in capital gains and dividend taxes.

    The KSE-100 index soared by 3,410.7 points, or 4.7 per cent, reaching 76,208 points. This increase represents the largest single-day jump in point terms.

    In the index’s history and the highest percentage rise since the International Monetary Fund (IMF) bailout package was introduced last year.

    Investor sentiment remained overwhelmingly positive throughout the trading session. The index hit an intraday high of 76,338.15 points, an increase of 3,540.72 points, and a low of 73,329.80 points, still up by 532.37 points.

    By the end of the day, the total volume traded on the KSE-100 index was 344.98 million shares.

    Out of the 100 companies listed on the index, 87 saw their shares close higher, nine experienced declines, and four remained unchanged.

    The government’s decision to set the capital gains tax at a flat rate of 15 per cent for filers on the sale of securities acquired on or after July 1, 2024, was a significant factor contributing to the market’s positive performance.

    For non-filers, capital gains will be taxed at normal rates, with a minimum rate of 15 per cent and a maximum rate of 45 per cent.

    This decisive move by the government has been well-received by investors, bringing clarity and stability to the market and fostering an environment of confidence and growth.

  • Pakistan stock market continues bullish run, nearing 55,000-point mark

    Pakistan stock market continues bullish run, nearing 55,000-point mark

    The Pakistani stock market is expected to surge past 55,000 points, continuing its bullish run at the Pakistan Stock Exchange (PSX). The benchmark KSE-100 Index reached a new historic high of 54,261 points on Wednesday amidst record trading activity.

    Institutional buying drove the index past the 54,000 mark during intraday trading. Maintaining momentum throughout the day, the KSE-100 Index settled at 54,261.42 points, an increase of 525.69 points, or 0.98 per cent.

    Profit-taking erased some gains at the PSX on Tuesday, with the benchmark KSE-100 Index falling by 125 points to settle at 53,735.73 at the end of trading.

    However, buying resumed on Wednesday, particularly among index-heavy sectors such as automobile assemblers,cement, chemicals, commercial banks, oil and gas exploration companies, and OMCs.

    Analysts attribute the bullish trend to expectations of a decline in the policy interest rate in the coming weeks.

    Experts believe that interest rates may come down sooner than expected due to the fall in global oil prices.

    Improved macroeconomic indicators, including a decline in the country’s current account deficit to $8 million in September 2023 (down from $360 million in the same month in 2022) and a drop in CPI-based inflation, have also contributed to the positive sentiment at the bourse.

  • Pakistan Stock Exchange gains over 2,300 points on revived investor confidence after signing IMF agreement

    Pakistan Stock Exchange gains over 2,300 points on revived investor confidence after signing IMF agreement

    The Pakistan Stock Exchange (PSX) experienced a substantial increase of over 2,300 points on Monday, fueled by renewed investor confidence after the signing of a staff-level agreement between Pakistan and the International Monetary Fund (IMF) on Friday.

    At 12:00 pm, the benchmark KSE-100 index of the Pakistan Stock Exchange surged by 2,381 points, currently trading at 43,833 points.

    Market experts attribute this bullish trend in the PSX to the revival of the loan programme with the international lender.

    Last week, Pakistan officially signed a staff-level agreement worth $3 billion with the International Monetary Fund (IMF). The signing ceremony took place in Lahore and was attended by Prime Minister Shehbaz Sharif, Finance Minister Ishaq Dar, and Information Minister Marriyum Aurangzeb.

    The International Monetary Fund (IMF) announced the successful completion of a “Stand-By Arrangement” between the global financial institution and Pakistan.

    The staff-level agreement, valued at $3 billion for a duration of 9 months, was reached through virtual negotiations conducted by IMF Mission Chief Nathan Porter and his team, who maintained continuous communication with Pakistani authorities.

    The final approval of this agreement will be granted by the IMF’s executive board, expected to occur in mid-July. Once approved, Pakistan will be eligible to receive the $3 billion loan.