The Pakistan Stock Exchange (PSX) kicked off the week on a positive note, with the benchmark KSE-100 Index gaining over 950 points during trading as investors anticipate approval from the Executive Board of the International Monetary Fund (IMF) for the disbursement of $1 billion for Pakistan today (Monday).
At 1pm, the benchmark index was hovering at 168,041.85, up 956.27 points, or 0.57%.
Buying was observed in key sectors, including cement, commercial banks, fertiliser, oil and gas exploration companies, OMCs and power generation. Index-heavy stocks, including OGDC, POL, PPL, PSO, SNGPL, DGKC, HBL, MCB and MEBL, traded in the green.
The Executive Board of the IMF is scheduled to meet today to consider “Pakistan’s Second Review for the 37-month Extended Arrangement under the Extended Fund Facility (EFF)” and the First Review for the “28-month Arrangement under the Resilience and Sustainability Facility (RSF).”
Upon approval, Pakistan will have access to about $1 billion (SDR 760 million) under the EFF and about $200 million (SDR 154 million) under the RSF, bringing total disbursements under the two arrangements to about $3.3 billion.
During the previous week, PSX closed on a strong note with equities extending their upward trajectory as all major indices advanced. By the end of trading on Friday, the KSE-100 Index had closed at 167,085.58 points, posting a modest 0.2% week-on-week rise.
Internationally, Asian shares dithered on Monday as investors bet the farm on a rate cut from the Federal Reserve this week, yet the meeting could be one of the most fractious in recent memory, with some policymakers openly arguing against an easing.
Markets imply around an 85% chance of a quarter-point reduction in the 3.75% to 4.0% funds rate, so a steady decision would be a seismic shock.
The Federal Open Market Committee has not had three or more dissents at a meeting since 2019, and that has happened just nine times since 1990.
In Asia, Japan’s Nikkei dipped 0.3%, after making a modest 0.5% gain last week. South Korean stocks eased 0.3%, having jumped 4.4% last week on confirmation of a lower US tariff on its exports.
MSCI’s broadest index of Asia-Pacific shares outside Japan was off a slim 0.1% in quiet trade.
Chinese blue chips should take their cue from the November trade data this morning, which will offer fresh evidence on how its exports are faring in the face of tariffs.
This is an intra-day update
