The stock market broke a three-day losing streak as investors welcomed the government’s push for privatization, the central bank’s decision to maintain the policy rate, and the receipt of a tranche from the International Monetary Fund (IMF), traders reported on Friday.
The benchmark KSE-100 shares index of the Pakistan Stock Exchange (PSX) surged by 1,244.45 points or 1.76%, closing at 71,902.09.
Raza Jafri, CEO of EFG Hermes Pakistan, noted that the market’s positive reaction was driven by April’s Consumer Price Index (CPI) print, the lowest in nearly two years. He mentioned, “This opens prospects for monetary easing in the June Monetary Policy Committee (MPC) meeting.”
Jafri added that economic stabilization, reflected in a favorable outlook for the rupee, is attracting foreign investors to the local equities market.
Investors showed interest in sectors like automobile manufacturing, cement, chemicals, commercial banking, oil and gas exploration, oil marketing companies, and refineries.
Stocks such as OGDC, PPL, DGKC, PSO, and SHEL remained popular among traders.
Pakistan International Airlines (PIA) saw a surge in its stock price following reports that ten potential buyers have expressed interest in acquiring the loss-making state-owned entity. Business magnates like Arif Habib and the Gerry’s Group are reportedly among the interested parties.
While the sale of the national carrier has historically been avoided by past administrations due to potential unpopularity, progress in privatization efforts could assist cash-strapped Pakistan in engaging in further discussions for funding with the IMF.
