The Pakistan Stock Exchange (PSX) benchmark (KSE-100) index experienced a significant surge this week, closing at 82,074 points, an increase of 2,741 points or 3.5% week-on-week.
This bullish trend of PSX was driven by optimism surrounding the anticipated approval of a $7 billion loan from the International Monetary Fund (IMF), with the IMF Executive Board scheduled to meet on September 25, according to AHL research.
Additionally, a 50 basis points rate cut by the Federal Reserve boosted market participation across Asian markets, including Pakistan. Large Scale Manufacturing Industries (LSMI) output saw a year-on-year increase of 2.4% in July 2024, although it decreased by 2.1% on a month-on-month basis.
Pakistan posted a current account surplus of $75 million in August 2024, the first surplus in four months. All bids in the T-Bill auction were rejected, and significant rate reductions were observed in the Pakistan Investment Bonds (PIB) auction, ranging from 190 to 335 basis points across all tenors.
