Analysts credit pledges of over $10 billion made at a donors’ conference jointly hosted by the governments of Pakistan and the United Nations in Geneva yesterday, as well as Saudi Arabia’s decision to study increasing investment in Pakistan, for the rebound in shares at the Pakistan Stock Exchange (PSX) on Tuesday.
At 12:24 PM, the benchmark KSE-100 index had risen 357.66 points, or 0.88 percent, to 40,862.42 points.
According to Ahsan Mehanti of Arif Habib Corporation, the stock market displayed optimistic activity following the donations made at the Geneva fundraising event and a likely favorable outcome of the ninth review of the $7 billion IMF program.
“Speculations about the earnings season played a catalyst role in the bullish activity,” he added.
The donors’ meeting was blamed for the stock market’s increase by three additional analysts. Siddique Dalal, CEO of Dalal Securities, referred to both the conference and Saudi Arabia’s objectives as “excellent news.” He pointed out that the KSE-100 index experienced a sharp morning recovery before losing part of those gains due to a decline in the share prices of companies in the oil industry.
I think the nation will get some breathing room, make it through the upcoming six months, and avoid default. But he went on to say that unless the IMF’s ninth review was finished and the gap between the USD-PKR exchange rate in the interbank, open, and grey markets was reduced, the market would remain range-bound in the long run.
The conference would improve investor confidence, which had been weakened recently, he added.