Stocks settle at new all-time high as IMF approves $1.2bn for Pakistan

Bullish sentiments were observed at the Pakistan Stock Exchange (PSX), with the benchmark KSE-100 Index closing at a new all-time high on Tuesday, as investors rejoiced after the International Monetary Fund’s (IMF) Executive Board on Monday approved the disbursement of $1.2 billion for Pakistan.

Overall sentiment appeared bullish, supported by an upward trend in the index throughout the trading session, pushing the index to an intra-day high of 169,601.03.

At close, the benchmark index settled at a new record high of 169,456.38, up 1,153.14 points or 0.69%.

“The rally drew further strength from the IMF’s approval of nearly $1.1 billion under the EFF and $220 million under the RSF, a decision that keeps the two loan programmes worth $8.4 billion firmly on track and boosted investor sentiment,” brokerage house Topline Securities said in its post-market report.

“This stellar momentum was powered by robust and persistent buying from local mutual funds, which revived sentiment and kept the rally firmly anchored. Market heavyweights FFC, LUCK, HBL, PSO, and MLCF led the advance, collectively contributing roughly 640 points to the benchmark’s impressive rise.”

Analysts attributed the positivity to the IMF board clearance, which unlocks about $1.2 billion, roughly $1 billion under the EFF and $200 million through the RSF for the South Asian nation, bringing total disbursements under the two arrangements to about $3.3 billion.

On Monday, PSX opened the week on a strong and confident note as equities posted robust gains across major indices, supported by improved investor sentiment and rising institutional interest. The benchmark KSE-100 Index surged by 1,217.67 points to close at 168,303.25.

Internationally, Asian stocks fell, and the dollar was steady on Tuesday as investors braced for a cut in US interest rates later this week, while the yen was calm after a powerful earthquake rocked Japan’s northeast region, though the impact was limited.

Investor sentiment remained cautious ahead of a slew of central bank meetings, including a looming decision by the Reserve Bank of Australia on the day, as markets look for a clearer picture of the outlook for global interest rates.

The RBA, SNB and Bank of Canada are all expected to hold rates steady this week, while the Federal Reserve is widely expected to lower borrowing costs on Wednesday.

The spotlight, though, is on what comes after the Fed’s December rate cut, with bond investors positioning for a shallow US easing cycle. Many Wall Street banks predict fewer Fed interest rate cuts in 2026 on lingering inflation concerns and expectations of a more resilient US economy.

That has left stocks trading sideways.

MSCI’s broadest index of Asia-Pacific shares outside Japan was 0.28% lower after a weak overnight session on Wall Street.

Meanwhile, the Pakistani rupee saw marginal improvement against the US dollar in the inter-bank market on Tuesday. At close, the local currency settled at 280.40, a gain of Re0.01 against the greenback.

Volume on the all-share index increased to 1,031 million from 783.08 million recorded in the previous close. The value of shares rose to Rs51.32 billion from Rs49.95 billion in the previous session.

K-Electric Ltd was the volume leader with 86.72 million shares, followed by Bunnys Limited with 62.06 million shares, and PIA Holding Company with 41.12 million shares.

Shares of 483 companies were traded on Tuesday, of which 272 registered an increase, 179 recorded a fall, and 32 remained unchanged.