Pakistan Index Witnesses Highest Surge in 15 Years Post IMF Agreement

After the government obtained a last-minute finance agreement from the International Monetary Fund (IMF), Pakistan's benchmark share index experienced its largest one-day gain in 15 years on Monday (Jul 3), rising 5.9% on the first trading day.

The nation obtained a $3 billion short-term financial package from the IMF on Friday, providing its teetering economy with a much-needed reprieve.

According to a statement from Prime Minister Shehbaz Sharif, "Investors' confidence is sharply reviving as a result of the staff-level agreement with the IMF and US$3 billion standby arrangement."

According to Refinitiv statistics, the KSE 100 index increased 2,442.06 points to close at 43,894.7, marking its largest percentage increase since June 24, 2008, when it increased 8.6%.

Topline Securities remarked in a tweet that the increase was even more dramatic when expressed in terms of points. According to the statement, "Today's gain in the key KSE 100 Index will probably be the highest ever recorded by Pakistan Stock Exchange."

Due to the commencement of the new fiscal year, there was no movement in the interbank market, and the Pakistani rupee held constant at approximately 286 against the US dollar for the day.

Although there were few tentative proposals from any sellers, there was growing interest in Pakistani eurobonds that would mature in 2024 and 2025.

Automakers increased between 6% and 7.5% among the key companies to advance on hopes that import restrictions on automobile parts would be relaxed under the IMF deal.

Several automakers including Pakistan Suzuki Motor had announced prolonged plant closures in 2023, citing import restrictions.

Honda Atlas Cars (Pakistan) and Pakistan Suzuki shares rose 7.5 per cent to hit the upper limits of trading bands, while Indus Motor, which markets Toyota cars in the country, gained 4.2 per cent.