The stock market rose on Monday as investors priced in an imminent International Monetary Fund (IMF) tranche and a regional backdrop of stabilization amid earnings season momentum, with rupee stability and firmer oil prices supporting risk appetite.
During the session, the Pakistan Stock Exchange (PSX) benchmark KSE-100 index rose to an intraday high of 163,769.83, gaining 2,138.1 points, or 1.32%, and recorded a low of 161,892.59, reflecting a gain of 260.86 points, or 0.16%.
“The bullish activity was reflected by the strong earnings outlook and the imminent receipt of the IMF tranche. The stability of the rupee and rising global crude oil prices played a catalytic role in the bullish activity in PSX,” said Ahsan Mehanti, Managing Director and CEO of Arif Habib Commodities.
The International Monetary Fund board is expected to approve a $1.2 billion disbursement to Pakistan, and State Bank of Pakistan (SBP) Governor Jameel Ahmad told analysts last week that a board meeting is likely to be held in December to release funds under both the Extended Fund Facility and the Resilience and Sustainability Facility.
On the macro front, weekly inflation as measured by the Sensitive Price Indicator rose 0.12% in the week to October 30, taking the SPI to 335.53 from 335.14; On a year-on-year basis, the SPI increased by 5.05%, according to the Pakistan Bureau of Statistics.
After a streak of losses 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 range-bound trading in the near term as investors follow the IMF calendar, earnings releases and developments on the Pakistan-Afghanistan ceasefire.
