KSE-100 hits all-time high as investors cheer IMF breakthrough
A day after shedding over 800 points, bullish momentum returned to the Pakistan Stock Exchange (PSX) on Tuesday, as the benchmark KSE-100 Index settled at a new all-time high of 120,450.
A buying spree was observed throughout the trading session, pushing the KSE-100 Index to an intra-day high of 120,693.83.
At close, the benchmark index closed on 120,450.87, an increase of 1,573.07 points or 1.32%.
'Market participants showed positive sentiments today, following Prime Minister Shehbaz Sharif's statement that talks with the International Monetary Fund (IMF) over the upcoming federal budget had been successful,' Waqas Ghani, Head of Research at JS Global, told Business Recorder.
Prime Minister Shehbaz Sharif said on Monday that talks with the International Monetary Fund (IMF) over the forthcoming federal budget had been successful, paving the way for a new phase of economic growth.
The premier, while talking to a select group of journalists, said the government had stabilised the economy and would now shift its focus toward sustained development.
Meanwhile, Samiullah Tariq, Head of Research and Development at Pakistan Kuwait Investment Company (Private) Limited, said that the government's adherence to IMF-backed reforms has 'led to sustainable economic growth'.
Moreover, investor confidence also comes on the back of a continued earnings momentum across key sectors and a more stable outlook, he added.
On Monday, PSX witnessed a volatile session on the first trading day of the week, as early bullish momentum was wiped out by heavy late-session selling, finally, the benchmark index closed into negative territory.
The benchmark KSE-100 index shed 813.29 points or 0.68% to close at 118,878 points.
Internationally, Asian shares edged cautiously higher on Tuesday while the dollar fell to a six-week low as erratic US trade policies clouded markets and investors turned defensive ahead of key developments later in the week.
US President Donald Trump and Chinese leader Xi Jinping will likely speak this week, White House press secretary Karoline Leavitt said on Monday, days after Trump accused China of violating an agreement to roll back tariffs and trade restrictions.
The call between the two leaders will be closely watched by markets to see if the tariff-induced blow to global stocks and the dollar this year could get some reprieve or ratchet up, as trade tensions between the world's two largest economies simmer.
Data on Monday showed US manufacturing contracted for a third straight month in May, and suppliers took the longest time in nearly three years to deliver inputs amid tariffs.
The gloomy global trade situation left US futures falling early in the Asian session, failing to sustain the slight gains made during the cash session on Wall Street overnight.
Nasdaq futures and S&P 500 futures were both down 0.2% each. In Europe, EUROSTOXX 50 futures advanced 0.28% and FTSE futures added 0.15%.
MSCI's broadest index of Asia-Pacific shares outside Japan reversed early losses to last trade 0.6% higher, while Japan's Nikkei rose 0.66%.
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