Buying rally continued at the Pakistan Stock Exchange (PSX) amid optimism over the International Monetary Fund (IMF) front on Monday, with the benchmark KSE-100 Index closing the day above 116,000 amid a gain of 663 points.
Positive momentum persisted throughout the trading session, with the KSE-100 hitting an intra-day high of 116,626.82.
At close, after some late session selling trims the gains, the benchmark index settled at 116,199.59, an increase of 663.43 points or 0.57%.
Buying was observed in key sectors including automobile assemblers, commercial banks, oil and gas marketing companies and OMCs. Index-heavy stocks including MARI, OGDC, PPL, PSO, SNGPL, MCB, MEBL and NBP traded in the green.
During the previous week, the PSX remained positive due to potential development related to settlement of energy circular debt and the International Monetary Fund (IMF) Extended Fund Facility (EFF) programme.
The KSE-100 rose by 1,137 points, or 1%, week-on-week, closing at 115,536 points compared to 114,399 points the previous week.
The IMF and the Pakistani authorities made ‘significant progress’ toward reaching a Staff Level Agreement (SLA) on the first review of the Extended Fund Facility (EFF), said IMF mission chief Nathan Porter in a statement Saturday.
An IMF team, led by Nathan Porter, visited Islamabad and Karachi from February 24 to March 14, 2025, to hold discussions on the first review of EFF.
“Progress has also been made in discussions on the authorities’ climate reform agenda, which aims to reduce vulnerabilities from natural disasters-related risks, and accompanying reforms which could be supported under a possible arrangement under the Resilience and Sustainability Facility (RSF),” it said.
Globally, most Asian equities advanced on Monday after China unveiled fresh measures to boost domestic consumption, although regional investors remained cautious amid escalating global trade tensions.
South Korean shares jumped 1.6% to their highest since February 27, while Malaysia’s benchmark climbed 1.1%, extending gains to a third straight session. Taiwan’s main index rose more than 1%.
China on Sunday unveiled sweeping measures to boost domestic consumption, including income hikes and childcare subsidies, just days after financial regulators urged an easing of credit restrictions — moves analysts say could revitalise Southeast Asia’s biggest trading partner.
The positive sentiment helped offset concerns about widening trade disputes after U.S. President Donald Trump threatened 200% tariffs on European alcohol imports last week.
Malaysian shares, which confirmed a correction last week, found support from the China news. Indonesia’s benchmark, however, dropped 1%. The index is now down 18.4% from its September highs, not far from the 20% mark which would confirm bear territory.
Most Asian stocks drop as Trump trade policy sows uncertainty
Stock market corrections are fairly common, with the S&P 500 logging 56 such pullbacks since 1929, and typically cause limited damage unless they deteriorate into more severe bear markets, Reuters analysis of Yardeni Research data shows.
Meanwhile, the Pakistani rupee saw marginal improvement against the US dollar, appreciating 0.02% in the inter-bank market on Monday. At close, the currency settled at 280.17, a gain of Re0.04 against the greenback.
Volume on the all-share index increased to 507.51 million from 360.46 million recorded in the previous close.
Whereas, the value of shares rose to Rs34.11 billion from Rs21.04 billion in the previous session.
Pak Elektron was the volume leader with 48.32 million shares, followed by B.O.Punjab with 46.58 million shares, and Pak Int.Bulk with 36.37 million shares.
Shares of 448 companies were traded on Monday, of which 179 registered an increase, 211 recorded a fall, while 58 remained unchanged.
