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Express Tribune
17 hours ago
- Business
- Express Tribune
PSX climbs to historic high at 124,379
The Pakistan Stock Exchange (PSX) closed at another historic high on Friday as investor confidence soared following the approval of federal budget for FY26. The benchmark KSE-100 index surged 2,332.60 points, or 1.91%, to settle at 124,379. 'The market rebounded strongly from Thursday's brief profit-taking phase, with bullish momentum prevailing throughout the session,' noted Ali Najib, Deputy Head of Trading at Arif Habib Ltd. Institutional investors led the rally amid portfolio rebalancing and optimism about the economic direction set by the newly approved budget. Investor sentiment was further buoyed by robust Roshan Digital Account (RDA) inflows, which reached $10.38 billion by May 2025. Monthly inflows rose 13% to $201 million while the number of accounts climbed to 823,224, reinforcing confidence in Pakistan's external account stability. Key index movers included Fauji Fertiliser Company, Lucky Cement, Meezan Bank, Pakistan Oilfields and Engro Holdings, which collectively contributed 866 points to the day's gains. Market breadth remained strong, with 773 million shares traded valuing at Rs37.6 billion. Bank Makramah led the volumes chart with 79.7 million shares changing hands. The benchmark index posted a weekly gain of 3.63%, or 4,356 points, over five sessions. After opening at 118,272, the index touched a high of 125,285 and a low of 115,887, closing well above the key 120,000 psychological mark. Market analysts view the KSE-100's ability to hold above the 122,000 level as a sign of strong momentum. A sustained stability above 120,000 could pave the way for a fresh rally towards 130,000, driven by improving macroeconomic indicators and rising investor confidence.
Express Tribune
26-03-2025
- Business
- Express Tribune
PSX rallies as Pakistan reaches staff-level agreement with IMF
Listen to article Pakistan's stock and currency markets surged on Wednesday after Islamabad reached a staff-level agreement (SLA) with the International Monetary Fund (IMF), easing investor concerns and reinforcing hopes of economic stability. The IMF announced Tuesday that it had concluded a staff-level agreement on the first review under Pakistan's Extended Fund Facility (EFF), as well as a new arrangement under the Resilience and Sustainability Facility (RSF). Subject to approval from the IMF's Executive Board, the deal will unlock about $1 billion, bringing total disbursements under the EFF to approximately $2 billion. The development sparked a sharp rally at the Pakistan Stock Exchange (PSX), with the benchmark KSE-100 Index hitting an intraday high of 118,220 points—up 1.4 per cent or 1,588 points. The index eventually closed at 117,772 points, marking a 1 per cent daily gain. 'Definitely, the IMF agreement on Pakistan's first review and climate financing was a major trigger for the market,' said Sana Tawfik, Head of Research at Arif Habib Ltd. She added that the index could hit a record 123,000 points by June, fueled by IMF inflows and improved market sentiment. Finance Adviser Khurram Schehzad emphasised the government's commitment to structural reforms, stating, 'We are committed to structural reforms for sustainable long-term growth and prosperity.' Pakistan projects a 3.6 per cent GDP growth for the current fiscal year. Rupee remains steady amid IMF boost Alongside the stock market, the Pakistani rupee also gained slightly, closing at Rs280.2 against the US dollar in the interbank market—a 0.1 per cent appreciation. The rupee, which has seen a 0.7 per cent depreciation since July, has remained largely stable in the Rs280-281 range. 'The rupee would have taken a hit had this agreement not been made,' said Owais ul Haq, a foreign exchange dealer at Arif Habib Ltd, who projected continued currency stability. 'Anything below this rate would hurt exporters,' he noted. A steady inflow of remittances has also helped support the rupee. Pakistan expects over $35 billion in remittances this fiscal year, with a record $1.3 billion received in February—boosted by seasonal events such as Ramadan and Eid. Muhammad Zafar Paracha, Secretary General of the Exchange Companies Association of Pakistan, said the IMF agreement had a calming effect on the currency market. 'The rupee has shown some appreciation and will strengthen more in the days to come,' he stated. PM cites progress on tax collection, economic reform Addressing the federal cabinet on Wednesday, Prime Minister Shehbaz Sharif said the IMF agreement would contribute to long-term economic stability. He highlighted an improved tax-to-GDP ratio of 10.6 per cent, surpassing the IMF's target of 10.2 per cent, and marking the highest ratio in four years. He said the IMF had originally required tax collection of Rs12.9 trillion this fiscal year but later revised the target to Rs12.1 trillion. Pakistan set its own target at Rs12.33 trillion and has achieved a 26 per cent increase in revenue collection, which the premier described as a 'quantum jump.'
