PSX bounces back on SBP, IMF optimism

Pakistan Stock Exchange (PSX) on Monday experienced a modest recovery, fueled by anticipation 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). In the morning, trading began on a positive note but the KSE-100 index soon plunged to the intra-day low at 64,811.92 points. Thereafter, it recovered rapidly and after frequent ups and down, the index reached the intra-day high at 65,148.36 points. At that point, investors got an opportunity to opt for profit-taking over caution ahead of the monetary policy announcement scheduled for around 4pm. Resultantly, the bourse fell close to its intra-day low post-midday trading, slipping below the 65,000 mark. Nevertheless, the market rebounded, propelled by surging global crude oil prices and strengthening of the Pakistani rupee, driven by optimism surrounding the IMF’s review for the release of $1.2 billion loan tranche. Fertiliser, banking and power sectors mainly contributed positively to the index.