PSX extends rebound as earnings and IMF payout hopes lift sentiment

KARACHI: The Pakistan Stock Exchange (PSX) extended its rally on renewed optimism driven by expectations of an imminent International Monetary Fund (IMF) disbursement, robust corporate earnings, and signs of macroeconomic stability.

“Bullish activity was witnessed on strong earnings outlook and imminent receipt of the IMF tranche,” said Ahsan Mehanti, Managing Director and CEO of Arif Habib Commodities. “Rupee stability and surging global crude oil prices also played a catalytic role in boosting investor confidence,” he added.

During intraday trading, the benchmark KSE-100 Index touched a high of 163,769.83 points, gaining 2,138.1 points or 1.32%. The index registered a low of 161,892.59, reflecting an early gain of 260.86 points, or 0.16%.

Investor optimism was further buoyed by remarks from State Bank of Pakistan (SBP) Governor Jameel Ahmad, who told analysts last week that the IMF Executive Board is expected to meet by December to approve a $1.2 billion disbursement under the Extended Fund Facility (EFF) and the Resilience and Sustainability Facility (RSF).

Meanwhile, regional developments also supported sentiment after Turkiye’s Foreign Ministry confirmed that Islamabad and Kabul had agreed to maintain a ceasefire and establish a joint monitoring and verification mechanism following peace talks in Istanbul mediated by Turkiye and Qatar.

On the macroeconomic front, the Sensitive Price Indicator (SPI) edged up 0.12% for the week ending October 30, taking the index to 335.53 from 335.14. Year-on-year, the SPI increased by 5.05%, according to data released by the Pakistan Bureau of Statistics.

After a volatile start to the week, the market rebounded strongly on Friday, adding 4,898.86 points (3.13%) to close at 161,631.73 compared to 156,732.87 a day earlier. Analysts expect the PSX to remain range-bound in the short term as investors closely monitor IMF developments, earnings announcements, and regional security updates.