KARACHI: The Pakistan Stock Exchange (PSX) witnessed a strong recovery on Thursday. The benchmark KSE-100 index closed higher by 1,010 points, amid hopes for circular debt resolution.
The KSE-100 index increased by 1,009.7 points, or 0.89 per cent, to 115,094.24 points, up from the 114,084.54 points recorded in the last session. The highest index of the day remained at 115,247.4 points, while the lowest level was recorded at 114,429.93 points.
Analyst Muhammad Hasan Ather at JS Global said the rally was driven by optimism over a potential resolution to circular debt in the energy sector and an upgrade of Pakistani banks by Moody’s Ratings. Investors remained upbeat ahead of the IMF review, hoping for the approval of the next loan tranche. “Looking ahead, positive economic development and investor confidence are expected to sustain the market’s upward momentum,” he said.
The KSE-30 index increased by 353.58 points 1.0 per cent to 35,611.1 points against 35,257.52 points.
Traded shares rose by 83 million shares to 382.791 million shares against 299.630 million shares. The trading value increased to Rs25.407 billion from Rs20.262 billion. Market capital expanded to Rs14.128 trillion against Rs14.048 trillion. Of the 444 companies active in the session, 232 closed in green, 156 in red and 56 remained unchanged. Analyst Maaz Mulla at Topline Securities said investor optimism fuelled a strong bullish surge in the trading session, with the index hitting an impressive intraday high of 1,162 points before closing at 115,094, marking a notable gain of 1,009 points or 0.89 per cent.
The positive momentum was largely driven by growing investor confidence that the ongoing review with the International Monetary Fund (IMF) will conclude smoothly. This sentiment acted as a key catalyst, encouraging aggressive buying across major sectors, he said.
The rally was predominantly led by FFC, PSO, LUCK, ENGROH, and MARI, which collectively contributed 506 points to the index.
The highest increase was recorded in Hoechst Pakistan Limited, which rose by Rs85.3 to Rs3,199.88 per share, followed by PIA Holding Company Limited B, which increased by Rs64.22 to Rs928.47 per share. A significant decline was noted in Unilever Pakistan Foods Limited, which fell by Rs122.4 to Rs23,217.2 per share; Service Industries Limited followed it, which closed lower by Rs36.15 to Rs1,383.77 per share.
Ahsan Mehanti, an analyst at Arif Habib Corp, said stocks recovered after Moody’s raised its outlook on Pakistani banks from stable to positive due to better financial performance and economic conditions.
He said that speculations over the resolution of the power sector’s circular debt ahead of the release of the IMF tranche next month and surging global crude oil prices played a catalyst role in the bullish close at the PSX.
BO Punjab remained the volume leader with 48.802 million shares, which closed higher by 36 paisas to Rs13.45 per share. Barkat Frisian Agro, with 24.68 million shares, followed it, which closed higher by Rs1.76 to Rs28.4 per share.
Other significant turnover stocks included Fauji Cement, Maple Leaf, Cnergyico PK, Sui South Gas, DGK Cement, PSO, WorldCall Telecom and Pak Refinery.In the futures market, 336 companies recorded trading, 232 of which increased, 98 decreased and 6 remained unchanged.
