KARACHI: The Pakistan Stock Exchange (PSX) kicked off the week on a strong note Monday, with investor sentiment buoyed by the announcement of a ceasefire with Afghanistan and Pakistan’s staff-level agreement with the International Monetary Fund (IMF).
The benchmark KSE-100 Index climbed to an intraday peak of 165,348.04 points, rising 1,541.83 points (0.94%) from the previous close of 163,806.21 points. During the session, it also touched a low of 164,281.95 points, up 475.74 points (0.29%).
According to Ahsan Mehanti, Managing Director and CEO of Arif Habib Commodities, “Positive momentum continued as reports of a ceasefire with Afghanistan and the IMF’s staff-level deal lifted confidence. Strength in global equities and the ongoing earnings season further fueled buying at the PSX.”
Investor optimism strengthened after Defence Minister Khawaja Muhammad Asif confirmed that Pakistan and Afghanistan had agreed to an immediate ceasefire following peace talks in Doha. He added that both sides would meet again in Istanbul on October 25 to discuss lasting solutions. The development followed a week of intense border skirmishes — the most serious since the Taliban’s return to power in 2021.
Adding to the upbeat mood was the IMF’s staff-level agreement for the second review of the Extended Fund Facility (EFF) and the first under the Resilience and Sustainability Facility (RSF). The Fund projected Pakistan’s GDP growth at 3.6% and inflation at 6% for FY26.
Market analysts said lower fixed-income yields, better credit ratings, and limited alternative investment options prompted investors to channel funds into equities.
Meanwhile, Pakistan signed a 5 billion RMB memorandum of understanding (MoU) with China to tackle the country’s worsening water crisis. The government also raised Rs507 billion through Pakistan Investment Bonds (PIBs) and Rs776 billion via T-bills, with PIB yields rising between 13 and 21 basis points.
On the external front, the State Bank of Pakistan (SBP) reported a $21 million increase in foreign exchange reserves, bringing the total to $14.4 billion, while the rupee appreciated slightly by 0.03%, closing at 281.1 against the US dollar.
Last Friday, the market had closed lower by 638.50 points (0.39%) at 163,806.22 points, despite touching a weekly high of 165,030.82. For the week, however, the benchmark still managed to post a modest gain of 708 points (0.4%).
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