Stocks rebound on World Bank loan approval

Pakistan Stock Exchange (PSX) on Monday experienced a significant recovery, driven by the World Bank’s approval of $150 million project financing and completion of final review under the International Monetary Fund’s (IMF) $3 billion standby arrangement (SBA). In the morning, the market saw a lacklustre start with the KSE-100 index touching the intra-day low of 65,301.73 points. However, investor sentiment turned positive as data revealed a current account surplus of $128 million in February alongside surging global crude prices and the rebound in Pakistani rupee following IMF’s initial approval of a $1.1 billion tranche. The oil and gas exploration sector led the market’s gains on reports of government efforts to draw investment from friendly countries in Pakistan’s largest hydrocarbon explorer. Banking, fertiliser and power sectors also helped push the index upwards. Eventually, the bourse reached the intra-day high of 65,656.49 points but closed more than 100 points below the peak.