Pakistan stocks surge by over 1,400 points amid decline in oil prices, policy rate cut hopes
ISLAMABAD: The Pakistan Stock Exchange (PSX) surged by over 1,400 points on Thursday as bulls dominated the trading session, with analysts attributing the rise to a drop in oil prices at the international market and investors' hopes of a further cut in the policy rate by the central bank.
The benchmark KSE-100 index rose by 1,459.41 points or 1.3 percent to close at 113,713.17 points on Thursday, up from the previous close of 112,253.76.
The development takes place as the State Bank of Pakistan's (SBP) Monetary Policy Committee (MPC) is set to review the interest rate on Mar. 10, with many expecting the bank to slash the interest rate further.
'Stocks closed bullish led by scrips across the board amid speculations ahead of SBP policy announcement on March 10,' Ahsan Mehanti, managing director and CEO of Arif Habib Commodities, told Arab News.
It said investors' expectations for further ease in the central bank's policy after treasury bill auction yields remained flat, following a decade-low consumer price index inflation which was recorded at 1.5 percent year-on-year in February.
Prominent Pakistani brokerage house Topline Securities attributed the surge in stocks to a sharp decline in global oil prices.
'This rally was primarily driven by a sharp decline in international oil prices, which plunged to multi-year lows, uplifting investor sentiment,' Topline Securities said in its daily market review.
'Moreover, speculation surrounding high-level meeting on the clearance of the longstanding circular debt further fueled optimism across the board.'
The report highlighted how the benchmark index surged to an intraday high of 1,617 points causing the equity market to witness a robust rebound in today's session.
It added that a total of 372 million shares changed hands which generated a turnover of Rs26.2 billion with PIBTL dominating the volume charts.
The development takes place as an International Monetary Fund (IMF) team is in the country for the first review of the $7 billion loan program that Islamabad secured last September.
A nine-member mission, led by IMF Mission Chief in Pakistan Nathan Porter, is in the country to assess Pakistan's economic performance and determine the release of a $1.1 billion tranche from the $7 billion Extended Fund Facility (EFF) over the next three weeks, secured as part of Islamabad's economic recovery plan.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Arab News
5 hours ago
- Arab News
Pakistan to unveil Economic Survey 2024-25 on Monday
ISLAMABAD: Pakistan will unveil its Economic Survey 2024-25 tomorrow, Monday, and detail major socio-economic achievements of the outgoing fiscal year, Pakistani state media reported. The survey will include details about performance and economic trends of various sectors, including agriculture, industry, services, energy, information technology and telecommunications, capital markets, health, education and transport. Annual trends of major economic indicators regarding inflation, trade and payments, public debt, population, employment, climate change, and social protection will also be part of the survey. 'Finance Minister Muhammad Aurangzeb will release the Economic Survey-2024-25 at a ceremony to be held in Islamabad,' the Radio Pakistan broadcaster reported. The survey will be followed by the presentation of the national budget. The earlier dates for the announcement of Economic Survey 2024-25 and federal Budget 2025-26 were June 1 and June 2, respectively, but the government extended the dates to June 6 and June 7. Pakistan is currently bolstered by a $7 billion International Monetary Fund (IMF) program and is navigating a long path to economic recovery. The country's annual inflation rate rose to 3.5 percent in May, though its macroeconomic outlook has improved in recent months, supported by a stronger current account balance and increased remittances. The Pakistani government says it remains committed to maintaining macroeconomic stability, accelerating structural reforms, and ensuring that economic growth translates into real and inclusive progress for all citizens. Earlier this month, Planning Minister Ahsan Iqbal announced the government has allocated Rs1 trillion ($3.5 billion) for development projects in the upcoming budget for fiscal year 2025-26.
Asharq Al-Awsat
3 days ago
- Asharq Al-Awsat
IMF Sees 'Some Progress' on Lebanon Reforms, But Says External Support Needed
Lebanon has made progress on reforms needed to revive its economy but still has key steps to take and will need external funding on concessional terms, the International Monetary Fund (IMF) said on Thursday after a week of meetings in Beirut. Lebanon's economy went into a tailspin in late 2019, prompted by decades of profligate spending by the country's ruling elite. Reforms required to access IMF funding were repeatedly derailed by political and private interests, according to Reuters. Lebanon's President Joseph Aoun and Prime Minister Nawaf Salam, both of whom took office in early 2025, pledged to prioritize reforms and secure an IMF financing agreement - but the country now faces additional needs with the widespread destruction and displacement caused by Israel's military campaign last year. 'The authorities have made some progress recently, including the amendment of the Bank Secrecy Law and submission of a new bank resolution law to Parliament,' the IMF's Lebanon mission chief Ramirez Rigo said in a written statement. Rigo added that his mission held 'productive discussions' with Lebanese officials, including on restoring the viability of the banking sector, fiscal and debt sustainability and enhancing anti-money laundering and terrorism financing measures. He said Lebanon's medium-term fiscal framework should support the restructuring of Eurobond debts, which Lebanon defaulted on in 2020, leading to a sovereign default on its $31 billion of outstanding international bonds. 'Given Lebanon's substantial reconstruction needs, limited fiscal space and lack of capacity to borrow, the country will require significant support from external partners on highly concessional terms,' the IMF statement said. The World Bank estimated Lebanon's recovery and reconstruction needs following Israel's military campaign at $11 billion. But the US has said it opposes any reconstruction funds to Lebanon until Hezbollah - the Iran-backed Lebanese armed group that fought Israel last year - is disarmed.
Leaders
3 days ago
- Leaders
Pakistan PM Visits Saudi Arabia: Eid Celebrations & Strategic Talks
Pakistani Prime Minister Shehbaz Sharif arrived in Saudi Arabia on Thursday for a crucial two-day official visit. He accepted Crown Prince Mohammed bin Salman's invitation to strengthen vital bilateral relations between the longstanding allies. The Prime Minister's Office confirmed his arrival and the visit's objectives earlier today. During his stay, PM Sharif will celebrate Eid Al-Adha within the Kingdom. He will hold substantive bilateral talks with Crown Prince Mohammed bin Salman. Discussions will prioritize boosting mutual cooperation in vital trade and investment sectors. Regional security matters will also feature prominently on their shared agenda. The two leaders will explore avenues to further strengthen multifaceted bilateral ties. Enhancing economic partnerships and investment flows remains a top priority. They will also address Muslim Ummah welfare and regional peace initiatives. Acknowledging Mediation & Boosting Economic Partnership PM Sharif will express Pakistan's sincere gratitude for Saudi Arabia's recent diplomatic intervention. The Kingdom played a pivotal role in de-escalating tensions between Pakistan and India. Gulf partners supported this crucial mediation effort between the nuclear neighbors last month. This high-level visit underscores rapidly expanding Saudi-Pakistan economic links. Both nations signed multiple significant trade and investment agreements recently. Saudi Arabia committed a substantial $5 billion investment package supporting Pakistan's economy. Saudi and Pakistani businesses signed 34 MoUs worth $2.8 billion last year. These agreements cover industry, technology, and agriculture sectors importantly. Manara Minerals is also negotiating to acquire a stake in Pakistan's massive Reko Diq project. Enduring Bonds: Defense & Vital Diaspora Links Defense collaboration remains a cornerstone of the robust Saudi-Pakistan relationship. The nations share a deep history of military cooperation and mutual support. Pakistan also provides valuable training assistance to Saudi forces. Approximately 2.7 million Pakistanis form a crucial diaspora within Saudi Arabia. Their remittances provide the highest foreign exchange inflow for Pakistan. This financial support constitutes an essential economic lifeline for their homeland. Short link : Post Views: 11
