Excitement soared at the Pakistan Stock Exchange (PSX) on Wednesday with shares surging over 700 points, just ahead of the crucial International Monetary Fund (IMF) Executive Board meeting. The KSE-100 index jumped by 0.94% to close at 82,247.91 points, driven by optimism surrounding the approval of the IMF programme.
Experts like Yousuf M Farooq from Chase Securities highlighted the market’s rally, linking it to the expectations of the IMF deal approval. The $7 billion aid package deal reached between Pakistan and the IMF in July is now awaiting validation from the Fund’s Executive Board today, promising to solidify macroeconomic stability and set the stage for robust growth.
Finance Minister Muhammad Aurangzeb and Prime Minister Shehbaz Sharif expressed confidence in the Fund’s review, expecting a positive outcome. As Awais Ashraf from AKD Securities noted, the market’s surge was fueled by hopes of the $7bn loan approval, particularly benefiting stocks amid monetary easing and structural reforms.
Investors are advised to keep an eye on high-dividend stocks and sectors set to gain from ongoing structural changes for potential opportunities.