Pakistan Stock Exchange hits record high amid investor optimism

The Pakistan Stock Exchange's benchmark KSE-100 Index reached a new high on Friday, closing over 1% higher thanks to late-session buying. Starting the day with a dip, the index hit an intra-day low of 71,764.18 before rallying in the final hours to close at a record high of 72,742.75, up by 771.35 points or 1.07%. This surge followed a previous retreat below 72,000 on Thursday after hitting a historic high earlier in the week.

Friday's market activity saw widespread buying across sectors like automobile assemblers, cement, fertiliser, and oil and gas exploration companies. Notable stocks such as DGKC, OGDC, PPL, and MARI performed well. The buying frenzy was attributed to investor anticipation of a rate cut in the upcoming Monetary Policy Committee meeting of the State Bank of Pakistan scheduled for Monday.

Following the policy decision, the IMF Executive Board is set to discuss the approval of $1.1 billion in funding for Pakistan, the final tranche of a $3 billion Stand-By Arrangement. This approval is expected to bolster Pakistan's foreign exchange reserves. Additionally, Pakistan is looking to secure a new, larger IMF loan, with talks expected to begin next month.

In currency markets, the Pakistani rupee saw a slight appreciation against the US dollar on Friday, settling at 278.39 in the inter-bank market. However, trading volume and share values on the all-share index decreased compared to the previous session.

Overall, Friday's market activity reflected investor optimism driven by potential rate cuts and IMF funding, with positive movements in key sectors and currency markets.