In anticipation of a quick deal between the government and the International Monetary Fund (IMF), which would assist the cash-strapped nation to avoid default, shares at the Pakistan Stock Exchange (PSX) increased by more than 400 points on Friday.
At 11:38 a.m., the benchmark KSE-100 index had risen 443.22 points, or 1.09 percent, to 41,114.10 points.
Raza Jafri, Head of Equities at Intermarket Security, stated, “The market is demonstrating significant resilience, with investors recognizing that the sudden hike in interest rates does move Pakistan closer to resuming the IMF plan, which is of paramount importance. Yet, he continued, there was still a lack of clarity for the second half of 2023, which, in Jafri’s opinion, might prevent the rebound.
Salman Naqvi, the head of research at Aba Ali Habib Securities, stated that the PSX saw a bullish sentiment today. Banks profit most from yesterday’s 3 percentage point increase in interest rates, with cash-rich companies coming in second.
According to him, shares of Pakistan Petroleum and OGDC, two cash-rich businesses, have seen a noticeable increase in the Exploration and Production (E&D) sector. He continued by saying that the IT industry also benefited from the dollar’s gain. The index “always has a good weightage for these industries.”
Naqvi, however, emphasized that the IMF agreement was still being finalized and expressed optimism that the market would end on a positive note.
