Buying returned to the Pakistan Stock Exchange (PSX) on Wednesday morning, helping the market recover after two days of losses, as investor sentiment improved on expectations of fresh inflows from the International Monetary Fund.
The benchmark KSE-100 index jumped more than 900 points within minutes of the opening bell. By 9:35am, it was trading at 169,329.62, up 917.39 points, or 0.54 percent.
The early rally followed a weak close a day earlier, when the index had settled at 168,412.23 after losing over 1,000 points amid selling pressure triggered by a surprise interest rate hike.
IMF hopes support recovery
Market participants linked the rebound to growing confidence that Pakistan is close to securing the next IMF tranche. Finance Minister Muhammad Aurangzeb said the country has met most programme conditions and expects the IMF board to consider approving a $1.2 billion release on May 8.
The expected inflow is seen as key for easing pressure on the external account and supporting foreign exchange reserves. An IMF mission is also expected to visit in mid-May to discuss the upcoming federal budget.
Analysts said the market’s ability to reclaim the 169,000 level was an encouraging sign, with investors once again willing to buy on dips after recent declines.
Broad-based buying seen
Gains were spread across major sectors, including automobile assemblers, cement, commercial banks, and oil and gas companies. Key index movers such as Attock Refinery, Hub Power, OGDC, PPL, Pakistan Oilfields, Mari Energies, MCB Bank, Meezan Bank and UBL all traded higher during early hours.
Trading activity remained strong, with volume crossing 236 million shares. The index moved within a range of 167,234 to 169,686 during the session so far.
Among individual stocks, several companies posted strong gains, while others continued to face selling pressure, reflecting a mixed but improving market tone.
Global cues remain mixed
Internationally, Asian markets showed a mixed trend as investors remained cautious ahead of the US Federal Reserve’s policy decision and earnings from major technology firms. Ongoing geopolitical tensions linked to Iran also kept sentiment in check.
Despite global uncertainty, local investors appeared focused on domestic triggers, with IMF-related developments providing near-term direction to the market.
The KSE-100 index remains down around 3.9 percent so far this year, although it has gained over 45 percent over the past 12 months.
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