Karachi: The Pakistan Stock Exchange (PSX) experienced notable gains with the KSE-100 index surging to 81,155.61, reflecting investor optimism following a new agreement with the International Monetary Fund (IMF).

According to JS Global, the positive shift in market dynamics was primarily due to the staff-level agreement reached between the IMF and Pakistani authorities on a new 37-month Extended Fund Facility (EFF) worth approximately US$7 billion. This arrangement is expected to bolster investor confidence, especially in the Cement, Exploration and Production (E and P), and Technology sectors.

Significant movements were observed in the market, with the KSE-100 index climbing by 1,211.51 points, a 1.5% increase, attributed to the IMF’s backing and its specific push for the implementation of an agricultural tax. The index reached a 52-week high of 81,155.61, continuing its positive trend from the year-to-date, which now stands at an increase of 29.95%.

Gainers on July 15 included AVN, with a 9.50% rise in stock price, and PAEL, which saw a 6.92% increase. However, there were also notable losers such as PGLC, which declined by 6.06%, and PAKT, down by 4.74%.

The market capitalization of PSX also showed growth, reaching Rs. 10,727.60 billion, which correlates to a market cap in USD of $38.60 billion. Total trading volume for the day was 441.34 million shares, with a total value of Rs. 27.23 billion (approximately US$97.98 million).

The international community's response to the IMF agreement has been favorable, noting the potential fiscal benefits such as an expected increase in tax revenue by 1% of GDP, which could significantly reduce Pakistan’s fiscal deficit. However, implementation challenges and potential resistance from the agricultural sector might pose hurdles to the smooth rollout of the new tax measures.