“KARACHI, Pakistan: “Pakistan Stocks Soar Amid Rate Cut Speculation & IMF Talks”, The benchmark share index in Pakistan surged to an all-time high on Wednesday, surpassing the significant milestone of 75,000 points. Investors are optimistic about potential interest rate cuts as early as June, buoyed by expectations of easing inflationary pressures. This development underscores growing confidence in the country’s economic outlook amid ongoing negotiations with the International Monetary Fund (IMF).”
Still attractive stock valuations, expectations of more foreign inflows, and the start of talks with the IMF on a new loan programme added to the bullish sentiment.
The index was trading at 75,013 points at 0531 GMT, up 0.7 per cent, after hitting an intraday high of 75,115. It has surged 80 per cent over the past year, and it is up 16.1 per cent year-to-date after an IMF rescue last summer helped the government avert a debt default.
On Monday, the index closed at a record of 73,822, up 1 per cent.
On Tuesday, the MSCI index added a Pakistani bank, National Bank of Pakistan , to the MSCI frontier market index. Its shares rose 1.6 per cent on Wednesday, outperforming the benchmark index.
“We estimate Pakistan’s weight will also increase, thereby having the potential to attract more passive foreign funds,” said Sohail. This observation suggests growing confidence in Pakistan’s market, potentially drawing greater foreign investment and enhancing its global profile.
The market is picking up steam due to an anticipated decline in inflation to 13.5 per cent for May and expectations of a monetary easing cycle starting in June, said Shahid Habib, CEO of Arif Habib Limited.
Investors were also optimism about discussions on a new International Monetary Fund financing program and the economic roadmap ahead, Habib said.
