KARACHI: Positive developments reinforced market confidence at the Pakistan Stock Exchange (PSX), as the benchmark KSE-100 Index gained over 700 points during intra-day trading on Monday.
At around 1:30 pm, the benchmark index was hovering around 43,576.27, a gain of 718.70 or 1.68%, as a bullish trend was witnessed across the board.
The PSX witnessed a positive trend during the outgoing three-day week ended on August 12, 2022 on the back of continued appreciation of Pak Rupee against the US dollar, decline in Pakistan International Bond yields and development on the International Monetary Fund (IMF) front.
The benchmark KSE-100 index surged by 761.33 points on a week-on-week basis and closed at 42,857.57 points on Friday.
Moreover, market sentiment was bolstered further after it was reported that Saudi Arabia plans to renew its $3-billion deposit in assistance to Pakistan, while also intending to provide $100 million per month for 10 months in petroleum products that would be granted as additional support.
It was learnt that the Saudi Ministry of Finance plans to renew its $3 billion deposit with the State Bank of Pakistan (SBP) as soon as this week.
The additional support would mean Pakistan’s funding gap, as the International Monetary Fund (IMF) calls it, has been covered after Saudi Arabia’s commitment.
The assurance will pave way for the IMF board’s approval at the end of the month.
Furthermore, the rupee continued its upward march against the US dollar, and was being quoted at 214.09, an appreciation of Rs1.4 or 0.65%, during intra-day trading.
The rupee gained nearly 4% against the US dollar during the shortened previous week, extending its winning run to nine sessions to eventually close at 215.49 in the inter-bank market.