Market anticipation that Pakistan could be removed off the Financial Action Task Force’s (FATF) grey list fueled the Pakistan Stock Exchange’s (PSX) surge on Wednesday, with the KSE-100 jumping 384 points.
Pakistan’s team is in Germany for a meeting of the FATF. Discussions on Pakistan’s removal on the heightened monitoring list, also known as the grey list, are set to begin today, with FATF plenary decisions expected to be released on Friday.
Furthermore, according to Business Recorder, China has agreed to roll over a $2.3 billion loan to Pakistan and, more importantly, to give extra assistance of between $2.5 and $2.8 billion in order to improve Pakistan’s $9.2 billion foreign exchange reserves (as of 3 June).
The rise comes after the stock market had one of its worst days of the year in the first post-budget session on Monday, when the KSE-100 Index fell 1,135 points as investors assessed the impact of the government’s new fiscal policies.
The KSE-100 index ended the day at 40,879.93, its lowest since November 27, 2020.
On Tuesday, however, the situation had improved, and trading began optimistically on Wednesday morning, with the market climbing close to 500 points in the early hours.
Due to the positive atmosphere, investors chose to cherry-pick equities. The market, buoyed by the rupee’s slide, gave up some of its gains around midday, but it still ended the day in the green.
The market closed at 41,438.79 points, up 384.11 points or 0.94 percent.
Bulls ruled the PSX on Wednesday, according to Capital Stake. The indices gained all day, as volumes increased from the previous close.
On the economic front, the rupee ended the day at Rs206.46 against the dollar, owing to fears over rising inflation and the dollar’s strengthening in the international market.
Cement (73.58 points), banking (70.56 points), and fertiliser were among the sectors that pushed the benchmark KSE-100 index higher (69.96 points).
The all-share index’s volume jumped to 141.7 million on Wednesday, up from 120.1 million on Tuesday. The value of shares exchanged increased to Rs4.76 billion, up from Rs3.36 billion the day before.
TPL Properties led the way in terms of volume with 17.35 million shares, followed by Balochistan Glass with 9.85 million and Pak Refinery with 8.92 million.
On Wednesday, 337 firms’ shares were traded, with 175 of them rising, 131 falling, and 31 remaining unchanged.