KARACHI: The Pakistan Stock Exchange (PSX) opened the new week with strong bullish sentiment as the benchmark KSE-100 Index rose by more than 1,200 points on Monday. The rally came as investors awaited a crucial decision by the International Monetary Fund (IMF) Executive Board on the expected disbursement of $1 billion to Pakistan.
Throughout the session, buying activity remained dominant, pushing the index to an intra-day high of 168,755.18. By the close of trading, the KSE-100 settled at 168,303.24, marking an increase of 1,217.66 points or 0.73 percent.
The IMF Executive Board is scheduled to meet today to review Pakistan’s progress under the Second Review of the 37-month Extended Fund Facility (EFF) and the First Review of the 28-month Resilience and Sustainability Facility (RSF). If approved, Pakistan will gain access to approximately $1 billion under the EFF and an additional $200 million under the RSF. These disbursements would lift the total released under both arrangements to nearly $3.3 billion.
In corporate developments, Pakistan Telecommunication Company Limited (PTCL) launched a fast-track five-to-six-month process for the takeover and merger of Telenor Pakistan. This move follows the company’s receipt of regulatory approval from the Pakistan Telecommunication Authority (PTA).
Last week, the KSE-100 Index had also closed on a positive note, ending Friday’s session at 167,085.58 with a modest week-on-week gain of 0.2 percent. Analysts noted improving investor confidence as economic indicators showed gradual stability.
On the global front, Asian markets were mixed as traders looked ahead to the US Federal Reserve’s meeting this week. Many investors are betting on a rate cut, with market expectations showing an 85 percent probability of a quarter-point reduction in the federal funds rate. However, some policymakers have expressed caution, raising the possibility of a divided outcome.
In regional markets, Japan’s Nikkei slipped 0.3 percent after modest gains the previous week, while South Korean stocks also eased 0.3 percent following a strong 4.4 percent surge last week. MSCI’s index of Asia-Pacific shares outside Japan edged down 0.1 percent amid subdued trading.
