Pakistan Stock Exchange surges above 116,000 after IMF acknowledges economic progress

On March 18, 2025, the Pakistan Stock Exchange (PSX) exhibited robust performance, closing above the pivotal 116,000 points mark for the third consecutive session. The notable increase in the benchmark KSE 100 index was predominantly influenced by positive feedback from the International Monetary Fund (IMF) regarding Pakistan's economic policy reforms. Following the conclusion of the first review of the $7 billion loan program over the weekend, the IMF expressed its recognition of the country's substantial strides toward meeting program guidelines and implementation criteria. Topline Securities Ltd reported that during this session, the KSE 100 index reached a peak of 1,091 points, ultimately closing with a gain of 663 points or 0.57% day-on-day. Among the sectors contributing to this upward momentum were Mari Energies, PSO, Lucky Cement, OGDCL, and The Searle Company, which collectively added 658 points to the index's performance. However, the market also faced some pressure from stocks such as Fauji Fertiliser, Engro Fertiliser, and Hub Power, which experienced a decline, contributing to a loss of 200 points from the index. Market analysts, including Ali Najib, Head of Sales at Insight Securities, emphasized the notable bullish trend in the PSX despite the absence of a Staff-Level Agreement (SLA). The ongoing involvement of Pakistan in the IMF’s Extended Fund Facility (EFF) was seen as a stabilizing factor for investor confidence. The positive review from the IMF highlighted crucial areas such as fiscal consolidation, monetary policy, energy sector reforms, and structural improvements, which are essential for the economic trajectory of Pakistan. Another contributing factor to the stock market surge included the rising global crude oil prices coupled with an ongoing bull run in global equities. Consequently, the trading volume experienced a significant increase of 40.79% to 507.51 million shares, while the traded value escalated by 62.1% to Rs34.00 billion day-on-day. As a result of these dynamics, the market's overall activity reflected a strong bullish sentiment among investors, reinforcing the optimism that accompanied the IMF’s recent evaluations.