The stock market rose on Monday as investors anticipated an imminent tranche from the International Monetary Fund (IMF) and a stabilizing regional backdrop amid earnings season momentum, with the stable rupee and strengthening oil prices supporting risk appetite.
During the session, the Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index climbed to an intraday high of 163,769.83, gaining 2,138.1 points, or 1.32 percent, and registered a low of 161,892.59, reflecting a gain of 260.86 points, or 0.16 percent.
“Bullish activity was observed due to strong earnings outlook and imminent receipt of IMF tranche. Stable rupee and surge in global crude oil prices played a catalytic role in the bullish activity on the PSX,” said Ahsan Mehanti, Managing Director and CEO of Arif Habib Commodities.
The International Monetary Fund’s board is expected to approve a $1.2 billion disbursement for Pakistan, with State Bank of Pakistan (SBP) Governor Jameel Ahmad telling analysts last week that a board meeting is likely to be held by December to release funds under the Extended Financing Facility and the Resilience and Sustainability Facility.
On the macro front, weekly inflation as measured by the sensitive price indicator increased by 0.12% in the week to October 30, taking the SPI to 335.53 from 335.14; on an annual basis, the SPI increased by 5.05%, according to the Pakistan Bureau of Statistics.
After a losing streak earlier in the week, the market rose on Friday, gaining 4,898.86 points (3.13%) to close at 161,631.73 from 156,732.87. Analysts expect limited trade in the near term as investors track the IMF timetable, earnings releases and developments in the ceasefire between Pakistan and Afghanistan.
