The Pakistan Stock Exchange (PSX) witnessed a historic surge on Monday morning, marking a new milestone as the KSE-100 Index soared to an unprecedented 81,380 points.
This surge, which saw an increase of more than 1,400 points during trading, reflects a positive market sentiment following the agreement with the International Monetary Fund (IMF).
Brokers and market analysts attribute this remarkable performance to the optimism surrounding the recent agreement between Pakistan and the IMF, which has bolstered investor confidence. The agreement is seen as a positive development that is expected to stabilize the country's economic outlook and attract further investment.
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"The 100 Index reaching 81,380 points is a significant achievement for the Pakistan Stock Exchange, signaling robust growth and investor interest," remarked a senior broker in Karachi.
Since the start of the trading day, there has been a notable upward trend in the PSX, with the KSE-100 Index surpassing the 81,000-point mark early on. The KSE-100 Index reached 81,102 points at the start of business week with an increase of 1,148 points.
On Saturday, a new staff-level loan agreement was reached between Pakistan and the International Monetary Fund (IMF) under which the country will receive $7 billion over 37 months. The final approval of the loan will be given by the IMF Executive Board.
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In a statement issued by IMF’s Mission Chief to Pakistan Nathan Porter, "The Pakistani authorities and the IMF team have reached a staff-level agreement on a comprehensive program endorsed by the federal and provincial governments, that could be supported by a 37-month Extended Fund Arrangement (EFF) in the amount equivalent to SDR 5,320 million (or about US$7 billion at current exchange rates)."
It further said that the agreement was subject to approval by the International Monetary Fund's Executive Board and timely confirmation of necessary financing assurances from Pakistan's development and bilateral partners.
