KARACHI – Following two consecutive sessions of selling pressure, the Pakistan Stock Exchange (PSX) saw a return of positivity on Thursday, with an increase of over 1,000 points in intraday trade.
At around 1:42 pm, the KSE-100 index surged by 1015.82 points, or 1.59 percent, reaching 65,064.26 from the previous close of 64,048.44.
Awais Ashraf, director of research at Akseer Research, echoed similar sentiments, noting the expectations of monetary easing and no new conditions for the disbursement of the IMF’s last tranche of $1.1 billion.
Yousuf M Farooq, director of research at Chase Securities, attributed this bullish momentum to “improved clarity on the political and economic fronts.”
Farooq highlighted the recent interview of the new finance minister in which he outlined a clear plan for the economy and emphasized notable improvements in stability during the first quarter compared to the previous year.
In the interview, the finance minister emphasized the importance of reducing government expenditure and moving towards investment, as friendly countries prefer to assist without aid. Regarding the relationship with the International Monetary Fund (IMF), the finance minister stressed concluding the IMF program to release the $1.1 billion tranche.
Shahab Farooq, director of research at Next Capital Limited, attributed the upward trend to anticipation of a positive outcome from negotiations with the IMF on the final tranche of the ongoing SBA.
Additionally, Farooq noted that the clear statements of the newly appointed finance minister boosted positive sentiments at the PSX.
