KARACHI: After a sharp early decline, stocks recovered on Tuesday, driven by optimism over an upcoming decision by the International Monetary Fund (IMF), as investors shrugged off regional tensions, betting on economic stability and fundamentals.
The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index surged by 808 points, or 0.71%, to settle at 114,872.18 amid sustained investor interest and higher volumes.
The market rallied throughout the session, hitting an intraday high of 115,040.58, just shy of its record levels, while the day’s low stood at 112,935.56.
Trading activity remained strong, with over 185 million shares changing hands, generating a total value of Rs22.38 billion. The previous close was recorded at 114,063.90.
Analysts attributed the recovery to the announcement that the IMF Executive Board will soon meet to approve a $1.3 billion loan for Pakistan and a new 28-month support programme to help the country deal with long-term economic challenges.
The IMF board is scheduled to meet on May 9 to discuss the $1.3 billion staff-level agreement (SLA) with Pakistan under its ongoing 37-month bailout programme.
The meeting, as per the statement issued by the IMF, will cater to Pakistan’s Extended Fund Facility (EFF), request for the modification of performance criteria, and request for an arrangement under the Resilience and Sustainability Facility (RSF).
The Washington-based lender and Islamabad reached an SLA and agreed on the first review of the $7 loan facility in March. The SLA, a 28-month deal, would support Pakistan’s efforts to mitigate and adapt to climate change, the IMF had said back then.
If approved by the IMF’s Executive Board, Pakistan will have access to approximately $1 billion under the EFF, bringing total disbursements under the programme to around $2 billion.
Ahead of the upcoming meeting, Finance Minister Muhammad Aurangzeb recently met IMF Managing Director Kristalina Georgieva on the sidelines of the WB/IMF Spring Meetings 2025 in Washington and reaffirmed the government’s commitment to reforms in key sectors.
According to a report by Topline Securities, the benchmark index experienced significant fluctuations during today’s session. It dropped sharply by 1,128 points early in the day due to selling pressure, particularly from leveraged investors. However, the market showed a strong recovery in the second half, ending the session at 114,872 points, a gain of 808 points or 0.71%.
“Market sentiment improved as margin-related selling eased, and investors began to buy quality stocks at lower levels,” the report noted.
The brokerage said that the recovery was mainly driven by key stocks like Engro Corporation, Mari Petroleum, Systems Limited, MCB Bank, and Sui Northern Gas Pipelines.
“These stocks alone contributed around 760 points to the overall index gain, highlighting their strong impact on market movement,” the report added.
Investor activity remained healthy, with a total of 408 million shares traded and a market turnover of Rs 29 billion. WorldCall Telecom led the volume chart once again, with 29 million shares changing hands.
