\u201cInvestors are showing positive sentiment upon expectations of new inflows,\u201d says expert
\n Karachi
\nThe equity market extended its gains on Monday, closing at an all-time high as investor sentiment remained upbeat on expectations of fresh inflows in the new fiscal year and improving sovereign risk indicators.
\nThe Pakistan Stock Exchange\u2019s (PSX) benchmark KSE-100 Index closed at 125,627.31, up 1,248.25 points, or 1%, from the previous close of 124,379.06.
\nDuring the session, the index surged to an intraday high of 125,748.58, gaining 1,369.52 points, or 1.1%, and touched a low of 124,500.20, reflecting a rise of 121.14 points, or 0.1%.
\n\u201cInvestors are showing positive sentiment upon expectations of new inflows to come in the new fiscal year,\u201d said Ahfaz Mustafa, CEO of Ismail Iqbal Securities.
\nChina extended a rollover and refinancing of $3.4 billion in commercial loans, enabling Islamabad to meet the IMF-mandated target of maintaining foreign exchange reserves above $14 billion by June 30.
\nThe package includes a $2.1 billion rollover of funds parked in the State Bank of Pakistan for the past three years, along with a $1.3 billion refinancing of a previously repaid loan.
\nThe Chinese support comes as Pakistan emerges as the most improved economy globally in terms of sovereign risk reduction.
\nAccording to data cited by Adviser to the Finance Minister Khurram Schehzad from Bloomberg Intelligence, Pakistan recorded the sharpest drop in default probability among emerging markets, with its CDS-implied default probability falling from 59% to 47% \u2014 an improvement of 1,100 basis points.
\nIn a post on X, Schehzad attributed the development to \u201cmacroeconomic stabilisation, structural reforms, timely repayments, and strengthened IMF engagement,\u201d alongside credit outlook upgrades by agencies such as S&P and Fitch.
\nOther economies showing risk improvement include Argentina, Tunisia, and Nigeria, while countries such as Turkiye, Ecuador, Egypt, and Gabon saw a deterioration in sovereign credit risk.
\nOn Friday, the KSE-100 Index surged by 2,332.61 points, or 1.91%, to a record close of 124,379.07 points, up from 122,046.46. The day\u2019s high reached 125,285.05 while the low was 122,222.7 points.<\/p>\n","protected":false},"excerpt":{"rendered":"
\u201cInvestors are showing positive sentiment upon expectations of new inflows,\u201d says expert Karachi The equity market extended its gains on Monday, closing at an all-time high as investor sentiment remained upbeat on expectations of fresh inflows in the new fiscal year and improving sovereign risk indicators. The Pakistan Stock Exchange\u2019s (PSX) benchmark KSE-100 Index closed […]<\/p>\n","protected":false},"author":2,"featured_media":486907,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-487690","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business"},"yoast_head":"\n