Positive IMF talks push PSX to new highs

KARACHI: Pakistan Stock Exchange (PSX) on Monday skyrocketed to a new record as it crossed the 56,000 milestone for the first time in history as investors bet on the positive talks with the International Monetary Fund (IMF) delegation. 

The KSE-100 index reached 56,378.91 points during the intraday trading, up by 987.55 or 1.78% from the previous close of 55,391.36 points.

Capital market expert Saad Ali told Geo.tv that the market was extending last week’s gains as the International Monetary Fund (IMF) concluded technical talks without any issue.

“There are no signs of the IMF disallowing rate cuts,” he added. 

The IMF’s mission began its review of Pakistan’s bailout package on November 2 and is expected to conclude by December 15.

The review will determine whether Pakistan will receive the second tranche of $700 million in December. The country received $1.2 billion in July from the global lender as the first instalment of the standby arrangement.

Last week, the benchmark index set a new milestone after it jumped past the 55,000 barrier on the ongoing IMF review, domestic institutional buying and reducing Pakistan Investment Bond (PIB) yields.

The benchmark KSE-100 index gained 4.3% in the week ended on Friday, marking its eighth consecutive weekly rise.