Geopolitical easing, IMF disbursement may boost stocks sentiment

#Geopolitical #easing #IMF #disbursement #boost #stocks #sentiment

KARACHI: Stock was shut down during the outgoing week between geopolitical stress. Something recovery is expected next week following the approval of the IMF funds and the DS Assignment of Geo -Political Stress.

According to Brookridge Arif Habib Limited, market participants are expected to keep a close eye on geographical political developments, with hopes that DS between Pakistan and India can help restore positive emotions. In addition, the expected distribution of the IMF is likely to increase market mode after its executive board meeting.

The Pakistan Stock Exchange (PSX) endured a tumultuous week, in which the KSE -100 index closed 6,939 points (6.1 percent on a week on 6.1 percent Saturday) at 107,175 points, with a large cross -border cross -border tension and key cross -border tensions.

According to JS Research analyst Mohammad Waqas Ghani, the sentiments of investors rapidly damaged the midwek amid reports of Indian drone strikes on major Pakistani cities, including Karachi and Lahore. After that, after the elimination of Indian Indian aircraft, which mobilized the second largest intra -day of the SE -100 on Thursday, the reduction of 7.6 percent, which stopped the temporary trade. However, the retaliation of Pakistani forces, which allegedly dropped 77 drones, helped reduce concerns of the increase by Friday, which enabled partial market recovery by recovering 3,648 points.

Nabil Aaron of the topline securities noted that individuals and bilateral funds, which are primarily to be released, were the main pure seller, while local institutions, such as banks, companies and insurance firms, took steps to absorb sales pressure.

According to the sector, the main drag has come from banks (-1,637 points), Exploration and Production (-905 points), cement (-738 points), technology (-508 points), and pharmaceuticals (-436 points). On the other hand, the sugar sector scored at least 7 points. Large individual Legards include UBL (-617 points), fate (-435 points), Hub C (-339 points), OGDC (-338 points), and Marie (-321 points), while Nestlé (+16 points), JDW (+7 points), and IBFL (+3 points).

Foreign investors replaced pure buyers, with a total of $ 1.52 million, which is 79 6.79 million last week’s net sales. Foreign interest was mainly seen in the cement sector (86 4.86 million) and oil marketing companies (9 1.96 million). Locally, bilateral funds and individual investors sold equity worth $ 26.39 million and $ 11.27 million, respectively.

The average daily trade volume increased by 20 % in the weekend to 508 million shares, while the average price increased by 0.3 percent to 0.3 percent to $ 98 million (equivalent to Rs 27.6 billion).

On the economic front, the State Bank of Pakistan (SBP) on Monday reduced its policy rate by 100 points, which marked the total decline of 1,100 base points from the top of 22 %. Subsequently, Kabur rates fell from 64 to 91 points (BPS) to different tanners, and the secondary market production also saw the bottom adjustment.

Meanwhile, SBP reserves increased by $ 118 million a week a week. Remittances of April 2025 increased by 13 percent year -on -year to $ 3.2 billion, while the budget deficit increased by Rs 2,970 billion (2.4 percent of GDP) during the first nine months of the financial year 25. Other important developments include collecting Rs 20-30 billion for sustainable projects at the beginning of Pakistan’s Green Soccer, which jumps 32 % of the year by year in oil sales in April, the FFC has increased its share of 37.36 % in Egigatic, and by the government’s 7,000 MW of energy through 7,000 MWs.

Despite the fluctuations, some analysts are cautious. Financial relaxation is underway, with foreign interest returning and the possible arrival of the IMF on the horizon, the market direction will depend on the widespread next week how the geopolitical tension is developed.