July 03, 2023 (MLN): Pakistan stock exchange (PSX) surged on Monday as investors responded positively to the long-stalling Staff Level Agreement (SLA) worth $3 billion finally being signed on Friday between the International Monetary Fund (IMF) and Pakistan, easing default fears.
Moreover, the IMF board is finally scheduled to meet the Pakistan side on July 12, 2023, following the Staff Level Agreement (SLA).
Consequently, the KSE-100 index recorded the highest DoD points gain ever of 2,446.32 points or 5.9%, closing the trading session at a 43,899 point level.
Moreover, the Consumer price index (CPI) for the month of June 2023 eased to 29.4% YoY, compared to 38% YoY in the last month and 21.3% YoY in June 2022, while declining by 0.3% MoM.
The previous gain of 1,700 points was observed on April 11, 2022, which was mainly attributed to political clarity and appreciation of the Pakistani rupee against the US dollar.
The surge was driven by the change in the country’s leadership after PM Imran Khan was ousted following a no-confidence vote against him.
Of the total KSE-100 index companies, 43 companies recorded a gain of around 7.5% or more.
The Exchange applies a Security-wise circuit breaker in case of price fluctuation of 7.5% or Re 1, whichever is higher than the security's closing price of the previous day.
