Mohsin Siddiqui (Chief Reporter)

Pakistan Stock Exchange (PSX) witnessed a bullish surge, with the benchmark KSE-100 Index crossing the unprecedented 62,000 level on Monday. As of 10:35 am, the benchmark index stood at 62,458.42, marking a notable increase of 767.17 points or 1.24%.

The bullish momentum was evident across the board, with index-heavy shares like OGDC and PPL recording gains exceeding 4%. Various sectors, including auto assemblers, chemical, commercial banks, oil and gas exploration companies, OMCs, and refinery, also contributed to the positive trend.

This surge follows the previous week’s upward rally, during which the benchmark index reached new record levels, closing at 61,691.25 points, reflecting a week-on-week increase of 2,604.90 points.

Market analysts attribute this buying spree to a staff-level agreement achieved between Pakistani authorities and the International Monetary Fund (IMF) concerning the first review under the nine-month $3 billion Stand-By Arrangement (SBA).

The optimism in the market is further fueled by improvements in the country’s financial indicators, including agreements with Kuwait and UAE, a $3.0 billion deposit extension by KSA, and an anticipated $2.0 billion inflow from the World Bank in FY24. Despite some policy-level concerns, above-target FBR collections at Rs 3.48 billion for the first five months of FY24 have also contributed to bolstering market sentiments.

Additionally, the stability of the rupee and the expectation that interest rates have peaked, with an anticipated downward trend starting in 2024, have redirected flows towards the PSX. The bullish trend reflects positive investor confidence in the economic outlook, contributing to this historic milestone for the Pakistan Stock Exchange.