The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index gained 500 points against the previous day’s close of 41,730.16 to reach 42,251 by 12 pm.
This is largely due to expectations that Pakistan will be removed from the Financial Action Task Force’s (FATF) grey list.
“Stocks closed bullish in the first session after reports of Pakistan’s likely exit from [the FATF] greylisting on agreement over compliance on 27 action items in the FATF plenary meeting,” Arif Habib Corporation Director Ahsan Mehanti told Dawn.com.
Raza Jafri, head of equities at Intermarket Securities, stated that the rally today was due to the expectation of a positive outcome from the FATF’s four-day plenary session. He said, “The results of the FATF plenary session are expected later today. Expectations of a positive outcome are leading the KSE-100 higher today.”
Salman Naqvi, head of research at Aba Ali Habib Securities, shared similar views, saying that most of the purchases today had been made by financial institutions.
According to recent reports, Pakistan is set to be removed from the FATF grey list. This has led to big investors buying blue-chip shares in anticipation of the country’s index rising above 43,000 in the next session.
Pakistan has been on the FATF’s increased monitoring list since 2018 for not meeting international standards in counter-terror financing and anti-money laundering regimes.
At its last plenary meeting in Paris in March, the FATF noted that Pakistan had completed 26 of the 27 action items in its 2018 action plan.
The FATF encouraged Pakistan to address the one remaining item – investigating terrorism financing and targeting senior leaders and commanders of UN-designated terrorist groups – as soon as possible.
With the FATF’s four-day plenary session due to conclude today, there have been reports that Pakistan would be finally taken off the body’s grey list.