Shares at PSX rally 900 points after IMF signals readiness to work with new govt

Bulls dominated the trading floor of the Pakistan Stock Exchange (PSX) on Friday as shares gained over 900 points, which analysts attributed to the International Monetary Fund (IMF) signaling its readiness to engage with the new government.

According to the PSX website, the KSE-100 index closed at 62,815.81 points, up 901.47 pr 1.46 per cent from the previous close of 61,914.34.

Earlier today, the IMF stated that it is looking forward to engaging with the new government on policies to ensure “macroeconomic stability and prosperity for all of Pakistan’s citizens”.

Shahab Farooq, director of research for Next Capital Limited, observed that the stocks showed a continued positive trend as the country “progressed towards the formation of the new government, along with the willingness of the IMF for negotiating a new programme with the newly elected government”.

He said that the appointment of the finance minister was another key development the market was waiting for.

He added that the market would closely follow key events in the near future, such as the formation of the government, the “reactions of the opposition”, the final review of the Stand-By Arrangement (SBA) with the Fund and the next monetary policy announcement.

Awais Ashraf, director of research at Akseer Research, echoed similar sentiments.

He said that the IMF’s assurance “to work with the new government for bringing economic stability in the country and bringing prosperity for people regardless of the uncertainty prevailing currently” helped restore investor confidence.