Buoyed by ceasefire and IMF loan approval, PSX goes up by over 1200 points

Bulls continued their march ahead at the trading floor of the Pakistan Stock Exchange (PSX) on Tuesday, with the benchmark KSE-100 soaring past the 120,000 mark in early trading. 

Investors were buoyed by a series of positive developments, including the ceasefire between Pakistan and India, facilitated by U.S. mediation, and the IMF’s approval of the first review of the Extended Fund Facility (EFF), which unlocked a $1 billion tranche.

According to the PSX website, the KSE-100 Index rose by 2,769.39 points, or 2.36%, reaching 120,067.12 by 9:30am. Later at 10:40 am, the KSE-100 Index was hovering at 117,686.17, up by 388.44 or 0.33%, erasing early morning gains. 

At the closing bell however, market maintained its consolidation course and the KSE-100 index closed at 118,575.88, a notable 1,278.15, or 1.09% points higher than the previous close.

Pakistan’s Finance Minister said in an interview with Reuters that the recent military escalation with arch-rival India won’t have a large fiscal impact on Pakistan and can be managed within the current fiscal space, with no need for a new economic assessment.

The finance minister said that the federal budget for the next fiscal year, starting July, will be finalised within the next three to four weeks, with scheduled budget talks with the IMF to take place from May 14–23.

Aurangzeb said Islamabad would receive the tranche disbursement on Tuesday [today].

In another positive development, Pakistan is set to launch its first Green Sukuk worth of Rs 30 billion, under the Sustainable Investment Sukuk (SI Sukuk) Framework, on Friday, May 16, through the Pakistan Stock Exchange (PSX) auction system. The funds raised through this Green Sukuk will be allocated to green, sustainable, and social projects that contribute to environmental sustainability.

The previous day, the PSX had seen a remarkable rally and the KSE-100 Index closed with its highest-ever gain of 10,123 points, settling at 117,297.73.

The latest gains reflect a wave of investor confidence, driven by both geopolitical stability and financial sector support, positioning the market for continued positive momentum in the coming weeks.