Spectrum Research has issued a review of PSX this week’s performance. It says that KSE100 experienced a sustainable surge, gaining nearly 861pts and closing at 45,068. The upswing was fueled by the anticipation of investors regarding loan, approved in IMF board meeting which held on July 12. Furthermore, the deposits from friendly countries Saudia Arabia and UAE in accordance to the USD8.2bn Financial GAP plan approved by IMF. Additionally, Fitch’s upgraded Pakistan’s long-term Foreign Currency Issuer Default rating from CCC- to CCC, as well as the disbursement of PKR142bn among Independent Power Producers (IPPs) by the CPPA to reduce circular debt, and the appreciation of the PKR against the USD by PKRX, all contributed to the market’s positive sentiment. As of result index heavy sectors including commercial banks, oil and gas exploration, OMCs, automobile assemblers, cement and chemical remained green during the week.

However, following the loan approval, the market showcased a dip as the investors booked profit, considering a significant rise of 3,814pts in last 11 days, along with decline in auto sales and LSM index by 81.8% and 7.9% respectively had a negative impact on the market Additionally, the IMF’s statement regarding the need for steadfast policy implementation by Pakistan and increase in oil prices (WTI) by USD3.01/bbl. due to eased US inflation and supply cuts implemented by OPEC countries added further challenges to the market.