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IMF Tranche Hopes Propel PSX Rally as KSE-100 Reclaims 160,000

Optimism over a $1.2 billion disbursement expected to go before the IMF Executive Board on December 8 lifted risk appetite.

Overview

  • The KSE-100 jumped more than 2,200 points on Thursday and, per later reports, closed around 160,657, regaining the 160,000 mark after two volatile sessions.
  • Traders pointed to expectations for the IMF to approve a roughly $1.2 billion tranche next month as the key catalyst for the sharp rebound.
  • The surge followed a 3,667.9-point plunge on Tuesday to 157,870.50 and a modest 313-point recovery on Wednesday that left sentiment tentative.
  • Gains were broad across banks, energy, cement, fertiliser, autos, power and refineries, with heavyweights such as HUBCO, OGDC, PPL, POL, Mari and major banks advancing.
  • Analysts cautioned that political uncertainty around the 27th Constitutional Amendment, recent terror attacks and continued foreign outflows seen on Wednesday keep risks elevated.