PSX hits another all-time high, as KSE-100 Index continues rally

Boosted by the IMF's loan approval, PSX hits new record high with the KSE-100 Index surging 588 pts in intra-day trade

The Pakistan Stock Exchange (PSX) soared to a new all-time high, with the KSE-100 Index surging by 588 points, reaching the 82,800-point mark.

The market's bullish momentum was fuelled by the eagerly awaited approval of a $7 billion loan from the International Monetary Fund (IMF) and Prime Minister Shehbaz Sharif's positive remarks, creating a wave of optimism among investors.

Several factors contributed to this upward trend, including strong international stock market performance, the IMF Executive Board’s green light for Pakistan's new loan programme, and renewed confidence in the banking, oil and gas, cement, and pharmaceutical sectors.

Sources indicate that Pakistan is expected to receive the first tranche of $1.1 billion by September 30, further boosting investor sentiment.

Blue-chip stocks like MCB Bank, Oil and Gas Development Company, National Bank of Pakistan, United Bank Ltd, and Bank Al-Habib saw widespread buying activity, collectively contributing significant points to the overall index's rise.

Experts note that the approval of the IMF agreement has had a substantial impact on the stock exchange, re-energising investors and keeping the market firmly in the positive zone throughout the trading session.

Earlier on Wednesday, the bourse, assisted by a combination of positive economic indicators, broke through the critical 82,000-point barrier to touch its intra-day high of 82,331.85 towards the close of trading. The market ended near its peak with significant gains.

Key factors fueling the bullish momentum included the falling government bond yields amid easing inflation, rising global crude oil prices and a strengthening rupee.

"Stocks closed at an all-time high on easing political noise and speculation ahead of the IMF executive board meeting for approval of a $7 billion EFF," said Ahsan Mehanti, Managing Director of Arif Habib Corp.