PSX increases as fresh liquidity causes strong recovery

• The KSE-100 index increases 1,529 points, closing at 114,330.10.
• The reference index hits an intra -business high of 114,573.67 amid strong profits.
• The rebound market sharply from the low of 111.857.33.

The capital market experienced a strong rally on Monday, as the new liquidity from local investors fueled a sharp inverting in emotion.

After a sluggish start of the meeting, the market watched a significant shift in the momentum, with large capital and institutional investors importing new capital.

The Pakistani Stock Exchange (PSX) reference index increased 1,529.17 or 1.36%, to settle in 114,330.10, powered by renewed liquidity injections and improved investor confidence.

The reference index touched an intercourse of 114,573.67, while the low meeting was 111,857.33, marking a dramatic recovery from the careful transaction that was observed earlier at the Synod.

Sana Tawfik, head of research at Arif Habib Limited, explained the displacement of market dynamics, saying: “The market has received new liquidity from local buyers, including some large capital and large buyers who have made new liquidity injections. This market, which was negative, has now become positive in the second half with increased shopping activity. “

Investors capitalized the attractive values ​​of stocks after a period of profit and cautious feeling.

Muhammad Saad Ali, Director of Research at Intermarket Securities Ltd, underlined the factors that affect the market resulting in Bearish Sentiment, saying: “In general, profitability between institutional investors due to lack of new positive actuators and current results. To lift the feeling of investors. “

“Also, concerns about cement prices. Finally, the market for the IMF’s review to pass before building new positions,” he added.

Finance Minister Muhammad Aurangzeb has confirmed the government’s commitment to eliminate tax evasion and tackling corruption, as Pakistan is dealing with the IMF for critical financial negotiations.

Speaking to the media, the finance minister confirmed that the IMF technical mission arrived in Pakistan for a three -day visit to discuss climate funding and financial reforms.

He also said that another IMF delegation is scheduled to arrive next month to discuss issues related to the country’s $ 7 billion facilitating (EFF).

Sources have revealed that a four -member IMF delegation is in Pakistan today and has begun introductory meetings with government officials. Technical level negotiations will focus on green budget, climate monitoring and reporting, as well as climate budget plans.

Climate change discussions come from the background of Islamabad’s request for € 1 to $ 1.5 billion funding to increase the existing $ 7 billion loan below EFF up to $ 8 or 8.5 billion.

IMF review is a crucial step in ensuring continuing financial support and maintaining economic stability.

Pakistan’s foreign exchange reserves increased by $ 35 million during the week ended on February 14, bringing total reserves held by Pakistani State Bank (SBP) to $ 11.20 billion. However, external funding needs of the country are still putting pressure on reserves, with analysts closely monitoring developments in remittances and export performance.

Total liquid foreign stocks amounted to $ 15.95 billion, with commercial banks holding $ 4.75 billion. Despite the latest increase, foreign debt repayments remain a significant challenge, as evidenced by a $ 252 million reduction in reserves recorded last week, bringing SBP total reserves to $ 11.17 billion from February 7.

Pakistan’s external account has shown signs of improvement, largely from the increase in remittances and better export yield. However, ongoing debt liabilities continue to weigh in exchange reserves, making financial negotiations even more critical with world lenders.

The KSE-100 index closed at 112,801 points on Friday, earning 716 points (0.64%) on a weekly basis, expanding its positive performance for a second consecutive week.

Investors have taken positions in selected sectors, such as corporate profit reports and external economic developments are being commercial.