PSX Rebounds as Optimism from SBP and IMF Boosts Market
By
March 19, 2024
The Pakistan Stock Exchange (PSX) witnessed a slight bounce back on Monday, driven by expectations surrounding the State Bank of Pakistan’s (SBP) monetary policy announcement and optimism about the International Monetary Fund’s (IMF) final review under its standby arrangement (SBA).
Trading began positively, but the KSE-100 index briefly dropped to 64,811.92 points before recovering to an intra-day high of 65,148.36 points. Profit-taking before the monetary policy announcement caused a dip, but the market rebounded due to rising global oil prices and a stronger Pakistani rupee, buoyed by hopes for the IMF’s approval of a $1.2 billion loan tranche.
Key sectors like fertiliser, banking, and power contributed positively, offsetting losses in some stocks like Lucky Cement and MCB Bank. While trading volumes decreased compared to the previous day, foreign investors remained net buyers.
The KSE-100 index closed at 64,890.51 points, recording a modest increase of 74.04 points. Analysts recommend investors to monitor banking and exploration and production (E&P) sectors for potential buying opportunities amidst the market’s fluctuating trends.
