KARACHI: Stocks achieved a significant milestone on Friday due to optimism surrounding Pakistan’s potential for securing a prolonged International Monetary Fund (IMF) programme.
The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index soared to a record high, reaching 80,000 points for the first time in its history. During intraday trading, the index climbed to 80,059.87 points, marking an increase of 1,258.34 points from the previous day’s close of 78,801.53 points.
EFG Hermes Pakistan’s CEO, Raza Jafri, attributed the post-budget rally to positive remarks from Fitch, which reinforced expectations that Pakistan will secure a new IMF programme. Jafri also noted that strong domestic liquidity and attractive equity markets, bolstered by the beginning of monetary easing, contributed to this surge.
Khurram Schehzad, CEO of Alpha Beta Core and an economic analyst, mentioned that the FY25 budget’s promise of a larger and extended IMF programme has boosted confidence among local and foreign portfolio investors.
Tahir Abbas, Head of Research at Arif Habib Limited (AHL), added that the market’s positive momentum is driven by investor optimism about the new IMF programme, decreasing inflation, a favorable interest rate trajectory, and a shift of funds from fixed income to equities.
