Loan deal projection propels PSX to new high

The remarkable rally continued at the Pakistan Stock Exchange (PSX) on Tuesday as bulls powered the KSE-100 index to a new record peak above 74,500 points in what analysts said was deep investor interest ahead of budget announcement amid hopes of a larger IMF loan deal. Despite initially trading at the intra-day low of 73,977 points, the index swiftly gathered steam. Citibank’s projection of a new International Monetary Fund (IMF) loan deal worth $8 billion by July 2024, coupled with planned Saudi investments and anticipated easing of the State Bank of Pakistan (SBP)’s monetary policy, contributed to the market’s momentum. Expectations about privatisation of state-owned enterprises (SOEs) and successful conclusion of Pakistan-IMF loan talks, and the SBP’s revised forecast for 3.5% economic growth in FY25 further aided the positive sentiment.