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Monday, April 22 2024
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Karachi: Pakistan stock market jumps after IMF bailout

Karachi: Pakistan stock market jumps after IMF bailout
Photo Credit : IANS

Karachi: Pakistan Stock Exchange (PSX) Monday witnessed a bullish trend as the KSE-100 benchmark index crossed over 2,400 points after the government reached a consensus with the International Monetary Fund (IMF) on a bailout package, media reports said.

The index opened in the green zone and remained positive throughout the session before the trading was halted for an hour after the index hit its upper circuit limit of 5 per cent at around 9:30 a.m., Geo News reported. The trading resumed at 10:37 p.m.

When the market opened on Monday, after Eid holidays break, it surged a record 2,231.1 points to 43,683.78 points, rising more than 5 per cent, which forced the suspension, Geo News reported.

As the trading resumed after an hour’s suspension, the benchmark index surged to 43,923.71 points — an increase of 5.96 per cent or 2471.03 points — at 11:20 a.m.

At the close of the trading, the market had gained 2446.32 points — an increase of 5.9 per cent — and closed at 43,899 points.

Pakistan secured a badly-needed $3 billion short-term financial package — subject to approval by the IMF board in mid-July — on Friday, giving the South Asian economy a much-awaited respite as it teeters on the brink of default, Geo News reported.

Ecohing Tariq, Arif Habib Limited’s Head of Research Tahir Abbas also said that the rally is primarily due to the staff-level agreement with the IMF.

When asked whether the rally would be short-lived, Abbas said: “No, the momentum and sentiment are very positive given now the country has an economic roadmap ahead for the next nine months.”

The KSE-100 index had become the world’s cheapest equity benchmark, according to Bloomberg, as concerns regarding political turmoil and a risk of default had sent investors fleeing, Geo News reported.

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