The Pakistan Stock Exchange (PSX) staged a sharp rebound on Thursday, with the benchmark KSE-100 Index climbing 1,459 points, or 1.3%, to close at 113,713. Investor sentiment was lifted by institutional buying and growing expectations of an interest rate cut by the central bank.
The rally was broad-based, with strong activity in key sectors, including banking, oil & gas, cement, and fertiliser. Market participants also reacted positively to ongoing talks between Pakistani authorities and the International Monetary Fund (IMF) regarding the review of the $7 billion Extended Fund Facility (EFF). A successful review could unlock another tranche of funding, providing much-needed fiscal space ahead of the annual budget.
Further bolstering sentiment, the government has ruled out a mini-budget to cover its revenue shortfall, instead opting to settle tax disputes in court. Additionally, falling global oil prices contributed to the market’s bullish trend, easing inflationary concerns.
The KSE-100 index recorded an intraday high of 113,871 points, maintaining upward momentum throughout the session. Market activity surged, with total traded volume rising to 373 million shares, while traded value jumped to Rs26.25 billion.
With macroeconomic developments shaping market expectations, investors remain focused on monetary policy cues and the IMF review outcome, which could drive the market’s direction in the coming weeks.
