Intra-day update: KSE-100 shows no signs of slowing, gains over 700 points

 

Stocks at the Pakistan Stock Exchange (PSX) showed no signs of slowing even as uncertainty prevailed over the central bank’s monetary policy announcement next week with the benchmark KSE-100 Index crossing 71,500 level with ease during the early hours of trading on Monday.

At 11:20am, the benchmark index was hovering at 71,623.29, an increase of 713.39 points or 1.01%.

Across-the-board buying was witnessed in sectors including automobile assemblers, cement, chemical, commercial banks, oil & gas exploration companies and OMCs trading in the green.

In a key development, it was reported that the International Monetary Fund (IMF) has not yet included Pakistan on the agenda of its executive board meetings scheduled till May 1.

According to the Fund website, the IMF issued the schedule of the executive board meeting set to be held on April 29 and May 1.

Pakistan is hoping for approval from the executive board which would pave the way for the country to receive funds of around $1.1 billion as its final tranche of the $3-billion SBA signed last year in June 2023.

“Government’s formal loan request to IMF and good March quarter dividends (are) helping share prices that, despite the rally, are trading at a forward-looking Profit to Earnings ratio of 4,” said Mohammed Sohail, CEO Topline Securities, sounding confident that upside was still available despite the record surge.

PSX witnesses positive trend

Pakistan stocks have rallied in recent months as the country successfully draws curtain on the $3-billion Stand-By Arrangement with the IMF, and prepares ground for a larger, longer programme with the lender.

Developments on foreign relations front have helped ease sentiment that had been rattled earlier due to record inflation and low economic growth.

Globally, the Asian stocks recovered some losses on Monday and bond yields rose as fears of a wider Middle East conflict ebbed, with investors gravitating back towards riskier assets.

Gold and the safe-haven dollar pulled back from near their peaks, and crude oil prices declined as the potential for a major supply disruption waned.

Iran said on Friday that it had no plan to retaliate following an apparent Israeli drone attack within its borders, which in turn followed an unprecedented Iranian missile and drone attack on Israel days before.

MSCI’s broadest index of Asia-Pacific shares rose 0.93%, retracing some of the 1.8% drop from Friday, after news of the Israeli strike emerged.