PSX closes 400 points in green amid FATF optimism.

The Pakistan Stock Exchange's (PSX) benchmark KSE-100 index closed 410.60 points in the green on Friday, largely buoyed by expectations of Pakistan's removal from the Financial Action Task Force's (FATF) grey list.

According to the PSX website, the index gained as much as 690.48 points against the previous day's close of 41,730.16 to reach 42,420.64 around 3:07pm.

The bourse subsequently closed at 410.60 points up, or 0.98 per cent.

"Stocks closed bullish in the first session after reports of Pakistan's likely exit from [the FATF] grey listing on agreement over compliance on 27 action items in the FATF plenary meeting," Arif Habib Corporation Director Ahsan Mehanti told Dawn.com.

Raza Jafri, head of equities at Intermarket Securities, also attributed today's rally to the "expectations of a positive outcome" after the FATF's four-day plenary session ends today.

"The results of the FATF plenary session are expected later today. Expectations of a positive outcome are leading the KSE-100 higher today," he said.

Salman Naqvi, head of research at Aba Ali Habib Securities, shared similar views, saying most of the purchases today had been made by financial institutions.

"Big investors have bought blue-chip shares following reports of Pakistan's removal from the FATF grey list," he said, adding that if the country is taken off the list today, he is expecting the index to cross the 43,000-mark in the next session.

Pakistan has been on FATF's increased monitoring list, or the grey list, since 2018 for deficiencies in its counter-terror financing and anti-money laundering regimes.

In its last plenary, held in Paris in March, the FATF noted that "Pakistan has completed 26 of the 27 action items in its 2018 action plan". The FATF encouraged Pakistan "to address, as soon as possible, the one remaining item, - investigating terrorism financing and targeting" senior leaders and commanders of UN-designated terrorist groups.

With the FATF's four-day plenary session due to conclude today, there have been reports that Pakistan would be finally taken of the...