KARACHI:
The Pakistan Stock Exchange (PSX) surged to an unprecedented high on Wednesday, nearing the 118,000 mark, as it continued its upward trajectory with a gain of over 950 points. This rally was fueled by strong institutional buying and optimism surrounding the potential resolution of the country’s persistent circular debt issue.
Investor confidence was further bolstered by the anticipated approval of the first review under the International Monetary Fund’s (IMF) $7 billion Extended Fund Facility. This approval is expected to unlock the second loan tranche of over $1 billion. Additionally, reports of clearing outstanding payments to independent power producers (IPPs) alleviated concerns in the energy sector, contributing to the positive sentiment.
Key sectors such as cement, commercial banks, oil and gas, fertilizers, and power drove the market’s upward momentum, pushing the index to an intra-day high of 118,244.
Arif Habib Corp Managing Director Ahsan Mehanti noted that the bullish trend was supported by speculation about resolving Rs1.5 trillion in circular debt within the power sector. Reports indicate that the IMF has conditionally agreed to approve the government’s circular debt management plan, which involves raising Rs1.25 trillion through commercial banks.
Mehanti added that rising global crude oil prices and expectations of a reduction in industrial power tariffs further fueled the market’s positive performance.
By the close of trading, the benchmark KSE-100 index had risen by 972.94 points, or 0.83%, settling at 117,974.03.
Topline Securities reported that the KSE-100 index reached a record high of 117,974, gaining 973 points. The market’s upward momentum was driven by robust institutional buying, with the index peaking at 118,244 during the session.
Major contributors to the rally included Hub Power, Mari Petroleum, Engro Holdings, Systems Limited, and Pakistan Petroleum, collectively adding 551 points to the index. Conversely, Fauji Fertiliser Company, Engro Fertilisers, and Pakistan Oilfields dragged the index down by 54 points.
Arif Habib Limited (AHL) highlighted that the KSE-100 index continued its rally toward January highs, approaching the 118,000 level. Of the 95 stocks traded, 57 advanced, while 38 declined. Hubco (+4.8%), Mari Petroleum (+1.83%), and Systems Limited (+2.39%) were the top performers, while Fauji Fertiliser Company (-0.21%), Engro Fertilisers (-0.39%), and Pakistan Oilfields (-0.59%) were the biggest laggards.
AHL noted that Wednesday’s closing above 117,900 marked a record high, with the next target being the intra-day peak of 118,700. The firm expects the upward trend to gain momentum as the market enters a vacuum.
JS Global analyst Muhammad Hasan Ather observed that the benchmark index closed higher for the fifth consecutive session, reaching an all-time high of 117,974 (+973 points). The rally was primarily driven by the oil and gas, power, and fertilizer sectors. Ather attributed the bullish trend to progress on the circular debt resolution and the IMF review, advising investors to adopt a “buy-on-dips” strategy.
KTrade Securities, in its market wrap, noted that the upward movement was supported by improved trading activity, progress on the IMF review, and the reported release of IPPs’ dues, alongside hopes for resolving the circular debt issue.
The power, oil and gas, cement, and banking sectors led the gains, with Hubco, Mari Petroleum, Engro Holdings, Systems Limited, Pakistan Petroleum, and Lucky Cement being the top contributors. Trading volumes rose to 544.2 million shares, up from 449.5 million on Tuesday.
During the session, shares of 449 companies were traded, with 221 advancing, 157 declining, and 71 remaining unchanged. The total value of shares traded stood at Rs32.3 billion.
Pakistan International Bulk Terminal led the volume charts with 52.2 million shares traded, gaining Rs0.39 to close at Rs11.05. It was followed by Pak Elektron, with 36.1 million shares traded, rising Rs3.19 to close at Rs48.14, and WorldCall Telecom, with 30.9 million shares traded, gaining Rs0.07 to close at Rs1.40. Foreign investors sold shares worth Rs963.9 million.
