The equity market extended its gains on Monday as the feeling of investors remained optimistic about the expectations of new entries during the new financial year and the improvement of sovereign risk indicators.
Pakistan Pakistan Benchmark KSE-100 index of Pakistan Pakistan has climbed to an intra-day summit of 125,385.14, winning 1,006.08 points, or 0.81%, and affected a minimum of 124,500.20, reflecting an increase of 121.14 points, or 0.10%, compared to the previous closure of 124 379.06.
“Investors show a positive feeling about the expectations of new entries to come during the new fiscal year,” said Ahfaz Mustafa, CEO of Ismail Iqbal Securities.
China has extended a reversal and refinancing of $ 3.4 billion in commercial loans, allowing Islamabad to reach the compulsory IMF objective to maintain exchange reserves over $ 14 billion on June 30.
The package includes an overthrow of funds of $ 2.1 billion stationed at the State Bank of Pakistan in the past three years, as well as a refinancing of $ 1.3 billion in a previously reimbursed loan.
Chinese support occurs while Pakistan appears to be the most improved economy in the world in terms of reduction in sovereign risks.
According to the data cited by the adviser of the Minister of Finance Khurram Schehzad of Bloomberg Intelligence, Pakistan recorded the highest decline in the default probability among emerging markets, with its default probability involved by CDs going from 59% to 47% – an improvement of 1,100 basic points.
In an article on X, Schehzad awarded development to “macroeconomic stabilization, structural reforms, timely reimbursements and reinforced commitment of the IMF”, in parallel with the upgrades of credit perspectives by agencies such as S&P and Fitch.
Other savings showing risks include Argentina, Tunisia and Nigeria, while countries like Turkiye, Equator, Egypt and Gabon have experienced a deterioration in sovereign credit risk.
Friday, the KSE-100 index jumped by 2,332.61 points, or 1.91%, to a record of 124,379.07 points, against 122,046.46. The top of the day reached 125,285.05 while the bottom was 122,222.70, because the scholarship posted its highest fence level.