Shares hit upper locks
ISLAMABAD: Shares listed at the Pakistan Stock Exchange hit the upper locks on Monday morning in reaction to the signing of the deal with the IMF.
Monday is the first working day after the government and the IMF signed the staff-level agreement for a $3 billion loan facility.
Before the opening of the stock market, analysts predicted a rapid boom in the market.
A screenshot of trading at the stock market on Monday as shares hit upper locks.
On Monday morning, the Pakistan Stock Exchange authorities suspended the trading after shares hit the upper locks within an hour. Five percent increase in the value of shares is the maximum limit for a day.
Hence, when the shares hit the upper locks soon after the opening of trading at the PSX, the management of the exchange suspended the trading.
The KSE-100 index of the PSX gained 2,230 points at morning, reaching 43,683.78 points. However, when the PSX management suspended trading, the KSE-100 index gained 1986 points.
Experts predict boom in stock market
The stock market in Pakistan is set to witness an immediate boom in the wake of the signing of a staff-level agreement between the IMF and the Pakistan government.
The executive board of the IMF will approve the loan on July 12, 2023.
“From this week, we can see a boom in stock market trading,” Nabil Ahmed, CEO of Spectrum Securities told The Truth International.
The KSE-100 index can show robust growth with more than 4,500 points in the next few days, he added.
Investors eyeing a bullish sentiment in the market after the revival of the IMF loan program.
After the payments from other countries, the Foreign Direct Investment, and foreign remittance flow to Pakistan will also improve, he said, adding the value of the rupee will improve against the US$.
Meanwhile, a former CEO of a brokerage house and the Executive Director of Mettis Saad Bin Naseer said that the rupee will gain some value in the inter-bank and open market operations.
He said that the deal with the IMF has ended the risk of default and it will revive economic activities in the country.
Moreover, the CEO of Spectrum said that the public sector-listed enterprises are expected to show a strong recovery in the stock market in the coming days.
Investors will be able to earn at least 10 percent profit on securities in a short time, he added.
Govt-IMF sign deal
Soon after signing a $3 billion deal with IMF, Prime Minister Shehbaz Sharif thanked China for saving Pakistan from default.
He said that the support of China and some friendly countries such as Saudi Arabia and the United Arab Emirates averted default.
PM Shehbaz said that Pakistan was among the countries with the fastest economic growth in 2018.
He said, “Then, Imran Niazi was imposed on the country through the worst rigging,” he remarked.
Shehbaz Sharif again said that the PTI government violated the IMF agreement, and damaged relations with international institutions. He said that the deal with the IMF would lead to economic revival and stability in Pakistan.
