PSX climbs over 400 points in intraday trade, spurred by hopes of exit from the FATF’s grey list.

After losing nearly 1,100 points earlier this week, the Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index opened in the green on Wednesday, soaring more than 400 points in intraday trade as investors regained confidence in Pakistan’s chances of being withdrawn from the FATF’s grey list.

By 2:00 p.m., the index had risen 443.24 points, or 1.08 percent, to 41,497.92 points, according to the PSX website. It had closed at 41,054.68 the day before.

Raza Jafri, head of research at Intermarket Securities, hailed China’s assurances of additional financial support as encouraging for the market.

He said, “Negotiations with the International Monetary Fund (IMF) are ongoing to add to the newly announced fiscal measures, and the program may resume soon.”

According to the analyst, this week, Pakistan can exit from the grey list following the Financial Action Task Force’s (FATF) assessment.

From June 14 to 17, the worldwide group that monitors money laundering and terrorism financing will host a four-day meeting in Berlin.

Director of the Arif Habib Corporation, Ahsan Mehanti, agreed. “Stocks rose sharply on investor speculation ahead of the findings of the FATF plenary meeting discussions, which are expected to decide on the country’s exit from the grey list,” he told Dawn.com.

Furthermore, he added, increased global crude oil prices and reduced the federal budget’s capital gains tax (CGT) spurred the positive activity.

Meanwhile, Aba Ali Habib Securities’ Salman Naqvi said that the market had reached an “oversold zone” and was currently in a “technical correction.”

He further said that the news about China rescheduling the loan allows the market to “bounce back” and that investors are hoping for more financial aid from the neighboring country.

After plummeting at the PSX on Monday, when the KSE100 index plunged by 1,134.80 points, the market regained its footing. Analysts attributed the negative action to several issues, including the government’s decision to increase taxes on the banking industry in the budget.

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