Pakistan’s benchmark share index, the KSE 100, surged over 6% on Monday, following the country’s successful procurement of a $3 billion short-term financial package from the International Monetary Fund (IMF), Reuters reported.
Topline Securities predicts that the gain in the KSE 100 Index will likely be the highest in the history of the Pakistan Stock Exchange. If the market sustains its current gains, it would mark the biggest single-day gain in percentage terms since March 2009.
Auto Stocks Rise
Auto stocks rose between 6% and 7.5% on expectations that import restrictions would be eased under the IMF deal. Automakers such as Pakistan Suzuki Motor Co and Honda Atlas Cars (Pakistan) saw their shares rise 7.5%, hitting upper circuits, while Indus Motor Co., which markets Toyota cars in the country, gained 6%.
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Impact on Auto Sector
With the import ban lifted and the IMF deal secured, companies like PSMC, INDU, and HCAR will not face any issues in their respective supply chains, according to Muhammad Iqbal Jawaid, an investment analyst at Arif Habib Limited. The necessary parts required for the assembly of vehicles will be available on time, he added.
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