The Pakistan Stock Exchange witnessed a robust uptick on Monday, with the benchmark KSE-100 Index surging by over 1 percent. This surge comes in the wake of Finance Minister Muhammad Aurangzeb’s pledge to proceed with privatization efforts, including the completion of the Pakistan International Airlines (PIA) transaction within the current fiscal year.
Additionally, favorable outcomes in recent by-elections have bolstered investor confidence, signaling growing prospects of political stability and continuity in governance.
Intraday trading activities have reflected a buying frenzy, particularly in the shares of the national flag carrier, with its stock price registering a notable increase of 7.52 percent.
While oil and gas exploration, marketing companies, commercial banks, cement, and automobile assemblers have traditionally been key market movers, their continued positive performance has further propelled market sentiment.
As of 11:19 am, the KSE-100 Index breached the 71,000 mark, reaching 71,623.29 following a gain of 713.39 points, or 1.01 percent.
This surge coincides with expectations of progress in upcoming talks with the International Monetary Fund (IMF) regarding a larger loan package under the Extended Fund Facility (EFF), along with requests for additional financing under climate financing initiatives.
Investors seem to be temporarily setting aside concerns over potential interest rate cuts, with the State Bank of Pakistan’s Monetary Policy Committee scheduled to convene on April 29. Despite calls from business circles to slash interest rates to stimulate economic growth, it appears unlikely that the central bank will make such a move next week, given the persisting inflationary pressures fueled by recent fuel price hikes and anticipated increases in gas tariffs.
Moreover, the likelihood of the Federal Reserve initiating a rate cut cycle has diminished, with expectations that any such action won’t occur until September amidst rising inflation in the United States.
Finance Minister Aurangzeb, during his recent visit to Washington, downplayed the potential impact of higher US interest rates on Pakistan, suggesting a measured approach to navigating global economic dynamics.
