KARACHI:
The Pakistan Stock Exchange (PSX) witnessed a strong rally on Thursday, with the benchmark KSE-100 index surging by nearly 1,500 points, reflecting a boost in investor confidence.
The upward trend was fueled by several positive economic factors, including expectations of monetary easing by the State Bank of Pakistan (SBP) and a decade-low inflation rate of 1.5% recorded in February 2025. Additionally, optimism about a potential agreement with the International Monetary Fund (IMF) and a broader bullish trend in Asian markets, driven by hopes of tariff relief, contributed to the market’s strong performance.
Key sectors such as automobile assemblers, commercial banks, and fertilizers remained in positive territory throughout the trading session.
Ahsan Mehanti of Arif Habib Corp noted that the bullish trend was driven by widespread activity across sectors, with investors speculating ahead of the SBP’s monetary policy announcement scheduled for March 10. He highlighted that expectations of further monetary easing were reinforced by flat T-bill yields and the historically low inflation rate. The rally in Asian equities, spurred by hopes of tariff relief under Trump, also played a significant role in the market’s positive close.
By the end of the session, the KSE-100 index had gained 1,459.42 points, or 1.30%, closing at 113,713.18.
Topline Securities reported that the equity market experienced a strong rebound, with the benchmark index reaching an intra-day high of 1,617 points. The rally was largely attributed to a sharp decline in global oil prices, which hit multi-year lows, boosting investor sentiment. Speculation surrounding high-level IMF discussions on resolving the circular debt issue further fueled optimism.
Major contributors to the index gains included Pakistan Petroleum, Oil and Gas Development Company (OGDC), Mari Petroleum, Pakistan State Oil, and Sui Northern Gas Pipelines, which collectively added 835 points to the index.
Arif Habib Limited (AHL) stated that the market’s movement beyond the 112,000 mark on Thursday kept it on track to achieve its weekly target of 115,000. Among the top performers, Pakistan Petroleum (+7.53%), OGDC (+4.54%), and Mari Petroleum (+3.41%) led the gains. On the flip side, Meezan Bank (-1.31%), Systems Limited (-1.23%), and Nestle (-1.83%) were the biggest drags on the index.
AHL predicted that the market, after being range-bound for an extended period, is now poised for a more aggressive upward movement. A weekly close above 115,000 could set the stage for new highs.
KTrade Securities highlighted that the rally was primarily driven by the energy sector, supported by reports of a potential resolution to the circular debt issue. The firm advised investors to remain cautious and focus on long-term investment strategies.
JS Global analyst Muhammad Hasan Ather noted that the market’s rally was supported by news of a possible resolution to the circular debt problem. He anticipated that the outcome of the IMF review could provide further direction to the market and unlock additional funding.
Trading volumes rose to 373.1 million shares, up from 264 million shares traded on Wednesday. Shares of 441 companies were traded, with 220 closing higher, 142 declining, and 79 remaining unchanged. The total value of shares traded during the day stood at Rs26.2 billion.
Pakistan International Bulk Terminal led the volume charts with 48.3 million shares traded, rising by Rs0.48 to close at Rs10.06. It was followed by Fauji Cement, with 28.2 million shares gaining Rs2.09 to close at Rs42.02, and WorldCall Telecom, with 22.6 million shares rising by Rs0.02 to close at Rs1.36.
Foreign investors, however, remained net sellers, offloading shares worth Rs433 million, according to the NCCPL.
