KSE-100 closes shy of 76,000 after gaining on UAE’s announcement, ‘progress’ on IMF front

Positivity was witnessed at the Pakistan Stock Exchange (PSX) as investors rejoiced over developments on the International Monetary Fund (IMF) and UAE fronts, driving the benchmark KSE-100 index over the 76,000 level for the first time in history during trading on Friday. However, some profit-taking above the 76,000-point level brought the index down in the final hour.

At close, the benchmark index settled at 75,983.03, up by 868.56 points or 1.16%.

Earlier, across-the-board buying was witnessed in key sectors including automobile assemblers, cement, chemical, commercial banks, oil and gas exploration companies, OMCs and refinery.

“This positivity in the market can be attributed to the statement by IMF that Pakistan authorities and IMF have made significant progress towards reaching a staff-level agreement as talks conclude today,” brokerage house Topline Securities said in its post-market report.

Major positive contribution to the index came from UBL, MCB, MEBL, HUBC and EFERT, as they cumulatively contributed 414 points to the index, the brokerage house said.

On a weekly basis, the KSE-100 gained by 0.9% as the index largely consolidated during the week, except the last session on Friday.

In a key development, the United Arab Emirates (UAE) on Thursday announced the allocation of $10 billion for investment in promising economic sectors in Pakistan.

The announcement came following talks held by UAE President His Highness Sheikh Mohamed bin Zayed Al Nahyan with Prime Minister Shehbaz Sharif.

Moreover, Pakistan authorities and the IMF also made “significant progress” towards reaching a staff-level agreement (SLA) on a new programme, according to an end-of-mission statement posted on the lender’s website on Friday.

The IMF mission, which concluded its visit on May 23, was in Islamabad to discuss Pakistan’s pursuit of a longer, larger Extended Fund Facility (EFF).

“Building on the economic stabilisation achieved through the successful completion of the 2023 Stand-by Arrangement (SBA), the IMF and the Pakistani authorities made significant progress toward reaching a Staff Level Agreement (SLA) on a comprehensive economic policy and reform program that can be supported under an Extended Fund Facility (EFF),” IMF Mission Chief to Pakistan Nathan Porter was quoted as saying in the statement.

Pakistan’s $3-billion SBA concluded last month, but authorities in Islamabad have been keen to pursue a 24th bailout with the IMF, hoping that a longer, larger EFF will put it on the path of permanence when it comes to economic stability and reform.

On Thursday, the PSX’s benchmark index regained the 75,000 level, settling at 75,114.47, up by 157.8 points or 0.21%.

Asian stocks fell on Friday, while the dollar advanced as strong US economic data bolstered the prospect of interest rates staying higher for longer and the Federal Reserve taking its time in cutting rates, keeping investors away from risky assets.

MSCI’s broadest index of Asia-Pacific shares outside Japan, opens new tab fell 0.5% and was on course for a 1% weekly decline, snapping its four-week winning streak.

Meanwhile, the Pakistani rupee appreciated marginally against the US dollar, gaining 0.03% in the inter-bank market on Friday. At close, the local unit settled at 278.21, a gain of Re0.09 against the greenback, as per the State Bank of Pakistan.

Volume on the all-share index decreased to 609.85 million from 758.94 million a session ago.

However, the value of shares jumped to Rs23.58 billion from Rs16.71 billion in the previous session.

K-Electric Ltd was the volume leader with 130.07 million shares, followed by WorldCall Telecom with 50.57 million shares, and Dewan Cement with 28.32 million shares.

Shares of 383 companies were traded on Friday, of which 215 registered an increase, 145 recorded a fall, while 23 remained unchanged.