The Pakistani Stock Exchange (PSX) KSE-100 benchmark index closed at 410.60. points in green on Friday largely supported by expectations of Remove Pakistan from the Financial Action Task Force (FATF) greylist list.
According to the PSX website, the index added as much as 690.48 points against close of the previous day of 41,730.16 to 42,420.64 around 15:07.
The exchange subsequently closed at 410.60. points up or 0.98%.
“Stocks closed higher in in first session after the reports of Likely Pakistan’s withdrawal from [the FATF] gray list on agreement over agreement on 27 action items in plenary meeting of the FATF,” said the director of the corporation, Arif Habib Ahsan Mehanti. Dawn.com.
Raza Jafri, head of shares of Intermarket Securities, also associate today’s rally with “expectations of positive result” based on the results of the four-day FATF plenary meeting session ends today.
” results of FATF plenary meeting session expected later today. expectations of positive result leading KSE-100 higher today,” he said.
Salman Nakvi, head of research Aba Ali Habib Securities shared similar views, stating that most of purchases today were made on financial institutions.
“Large investors bought blue chips shares following reports of Remove Pakistan from FATF Greylist list”, he said, adding that if the country is taken off in list today he expects the index to break the 43,000 mark. in in next session.
Pakistan was on enhanced monitoring FATF list or gray list since 2018 for limitations in his counter-terror funding and anti-money laundering modes.
In his last plenary session in Paris in In March, the FATF noted that “Pakistan has completed 26 of act 27 items in its action plan for 2018. The FATF urged Pakistan to “decide how soon as possible, one left item– investigation of terrorist financing and targeting” senior leaders and commanders of Terrorist groups listed by the UN.
With the four-day FATF plenary meeting session due to end today, there were reports that Pakistan would finally be taken of in bodygrey list.
Pakistan is a few inches closer to reopening of IMF program’
The rally witnessed in stock market today continued of its relatively positive momentum from past two days, which, in addition to the possibility of Pakistan taken off gray color FATF list due to recent increase in fuel price Prices – for third time in 20 days.
price the trip was one of terms for renewal of a $6 billion International Monetary Fund loan program that has been suspended since April.
Pakistan signed a 39-month extended financing agreement worth $6 billion. with IMF in July 2019, but the Fund stopped the payment of about 3 billion dollars when the previous government refused on their obligations and announced fuel and energy subsidies.
This was announced on Wednesday by Finance Minister Miftah Ismail. announced in overnight press conference government raised fuel prices up up 29 percent and said prices of all oil products were delivered to their purchase price and element of subsidy or price the differential claim was eliminated.
This was viewed as step to resume of IMF line of credit and is said to have stimulated an investor confidence.
“Pakistan continues to move closer to restarting the IMF program,” Jafri said when asked to provide reasons for rally in PSX.
mehndi also cited speculation about a likely resumption of IMF program behind positive investor sentiment, in addition to “institutional support on the fall government treasury bond yield.
