KSE-100 settles above 168,000 ahead of crucial IMF Executive Board meeting

The Pakistan Stock Exchange (PSX) kicked off the week on a positive note, with the benchmark KSE-100 Index gaining over 1,200 points during trading as investors anticipated approval from the Executive Board of the International Monetary Fund (IMF) for the disbursement of $1.2 billion for Pakistan on Monday.

Buying momentum was observed throughout the trading session, pushing the KSE-100 to an intra-day high of 168,755.18.

Key index movers — FFC, SYS, NBP, PTC, and DGKC — played a significant role in the rally, jointly contributing around 846 points to the benchmark’s rise, brokerage house Topline Securities said in its post-market report.

Ali Najib from Arif Habib Limited said the market was expected to attempt a new all-time high, with the energy sector likely to lead the rally.

“Anticipation of a potential circular debt disbursement tomorrow continues to fuel positive sentiment and may trigger fresh buying interest across key E&P and power sector stocks,” he said.

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.

On the corporate front, Pakistan Telecommunication Company Limited (PTCL) kicked off a five-to-six-month fast-track takeover and merger process after securing the Pakistan Telecommunication Authority’s (PTA) approval to acquire Telenor Pakistan.

In 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.

Meanwhile, the Pakistani rupee saw marginal improvement against the US dollar in the inter-bank market on Monday. At close, the local currency settled at 280.41, a gain of Re0.01 against the greenback.

Volume on the all-share index increased to 783.08 million from 686.83 million recorded in the previous close. The value of shares rose to Rs49.95 billion from Rs41.62 billion in the previous session.

P.T.C.L was the volume leader with 60.89 million shares, followed by Bunnys Limited with 51.95 million shares, and K-Electric Ltd with 46.95 million shares.

Shares of 482 companies were traded on Monday, of which 244 registered an increase, 197 recorded a fall, and 41 remained unchanged.