The bullish momentum was seen at the Pakistan Stock Exchange (PSX) amid improved market sentiments, as the benchmark KSE-100 Index jumped nearly 600 points during the trading session on Tuesday.
At 12:04 pm, the benchmark index was hovering at 57,656.48 level, an increase of 578.52 points or 1.01%.
Across-the-board buying was witnessed on Tuesday, with the index-heavy sectors including automobile assemblers, cement, commercial banks, fertilizer, oil and gas exploration companies and OMCs trading in the green.
On Monday, the PSX witnessed a range-bound session, as the benchmark KSE-100 Index closed at 57,077.96, up by only 15 points or 0.03%.
Analysts attributed the bullish trend to reports that a staff-level agreement between Pakistan and the International Monetary Fund (IMF) authorities will be inked in the coming weeks.
Moreover, improved economic indicators including a decline in the current account deficit and a break in the rupee’s depreciation run are also contributing to the positive sentiment.
Pakistan’s current account posted a deficit of $74 million in October 2023, according to data released by the State Bank of Pakistan (SBP) on Monday.
On a yearly basis, the CAD was significantly lower, i.e. over 91%, than the $849 million recorded in the same month last year. The decline was attributed to improvement in exports and remittance inflows and a reduction in the import bill.
