PSX Rises 800 Points After IMF Loan Announcement: Market Rebounds Amid Economic Optimism
Market Rebounds After Recent Drop
The Pakistan Stock Exchange (PSX) made a strong comeback on Tuesday. The KSE-100 index jumped by 808 points, ending at 114,872.18, compared to the previous close of 114,063.90. This increase came after a sharp fall earlier in the week.
IMF Meeting Brings Hope
Investors reacted positively to news from the International Monetary Fund (IMF). The IMF announced that its Executive Board will meet on May 9. They will decide on a $1.3 billion loan for Pakistan under the Extended Fund Facility (EFF). A new 28-month deal under the Resilience and Sustainability Facility (RSF) will also be discussed.
The IMF website confirmed that the meeting includes a review of Pakistan’s $7 billion bailout program and a climate loan plan.
Investor Focus Shifts to Economic Growth
Awais Ashraf, Director of Research at AKD Securities, said this news shifted attention from tensions with India to economic recovery.
Earlier this week, market activity was affected by fears over the economy and growing border issues. The announcement brought back investor confidence.
Rising Tensions Hurt Market Earlier
On Monday, the market started strong but ended lower due to rising fears. India had suspended the Indus Waters Treaty (IWT), while Pakistan threatened to halt the Simla Agreement and close its airspace to Indian flights.
These moves came after a deadly terrorist attack in Pahalgam on April 22, where 26 people were killed. It was one of the worst attacks in the region since 2000.
Market Volatility Continues
Topline Securities Ltd reported a “tug-of-war” between buyers and sellers. On Monday, the index went up by 1,189 points during early trading. But later, it dropped by 1,601 points, ending the day down 1,405 points or 1.22%.
The market’s recent swings show how sensitive it is to both economic news and regional politics.
