Shares on the Pakistan Stock Exchange (PSX) surged over 700 points during intraday trading on Monday, driven by expectations of reduced inflation figures.
The KSE-100 index rose by 704.08 points, marking a 0.9% increase, reaching 79,149.04 at 11:15 am from its previous close of 78,444.96 points.
Mohammed Sohail, CEO of Topline Securities, noted that investors were initiating new positions in anticipation of a lower Consumer Price Index (CPI) reading.
Additionally, Sohail mentioned expectations surrounding the imminent International Monetary Fund (IMF) staff-level agreement (SLA) following the approval of a budget laden with taxes.
Raza Jafri, CEO of EFG Hermes Pakistan, emphasized the positive investor response to the passage of the FY25 budget, seen as a significant step towards securing an IMF programme.
Jafri highlighted that anticipation of continued interest rate cuts in upcoming monetary policies, alongside expected lower inflation, continued to attract local investments into equities.
Yousuf M. Farooq, Director of Research at Chase Securities, attributed the market’s upward momentum to the budget’s approval, which is anticipated to pave the way for Pakistan’s next IMF programme.
Farooq emphasized that a new IMF programmer would enhance external stability and fiscal discipline in Pakistan, potentially leading to a gradual reduction in interest rates and a positive market re-evaluation.
