KARACHI: Continuing its momentum from the previous session, the Pakistan Stock Exchange (PSX) witnessed another positive session on Friday. The benchmark KSE-100 index increased by 686 points, as investors expect a further cut in the key policy rate next week.

The KSE-100 increased by 685.52 points, or 0.6 percent, to 114,398.7 points, up from the 113,713.18 points recorded in the last session. The highest index of the day remained at 114,721.58 points, while the lowest level was recorded at 114,169.2 points.

Ahsan Mehanti, an analyst at Arif Habib Corp, said, “Stocks closed higher as investors eye reduction in the SBP key policy rate next week after the decade-low CPI inflation at 1.5 per cent YoY in February 2025.”

He said that the strong rupee, government deliberation over privatisation of SOEs, and expectations over resolving the power sector’s circular debt ahead of the release of the IMF tranche next month played a catalyst role in the bullish close at the PSX.

The KSE-30 index increased by 156.17 points or 0.44 per cent to 35,458.01 points against 35,301.84 points.Traded shares rose by 31 million shares to 404.365 million shares against 373.093 million shares. The trading value rose to Rs27.842 billion from Rs26.249 billion. Market capital expanded to Rs14.125 trillion against Rs14.036 trillion. Of the 433 companies active in the session, 219 closed in green, 151 in red, and 63 remained unchanged.

Analyst Nabeel Haroon at Topline Securities said “continuing its previous day momentum, KSE-100 index gained 0.6 per cent to close at 114,399 level. Oil and cement companies led the rally in market; oil companies were up on news that the government has reached a deal with commercial banks to borrow Rs1.25 trillion at less than 11 per cent interest rate to settle circular debt. Cement companies garnered investor interest in the recent decline in coal prices, he said.

Top positive contributions to the index came from PSO, FCCL, HUBC, PPL, PIOC, LUCK and CHCC, as they cumulatively contributed +513 points to the index. Traded value wise PSO (Rs4.58 billion), FCCL (Rs2.56 billion), PPL (Rs2.41 billion), OGDC (Rs1.99 billion), MLCF (Rs1.25 billion) and DGKC (Rs1.22 billion) dominated the trading activity.

The highest increase was recorded in Unilever Pakistan Foods Limited, which rose by Rs151.15 to Rs23,320.15 per share, followed by Ismail Industries Limited, which increased by Rs83.25 to Rs1,886.94 per share. A significant decline was noted in JDW Sugar Mills Limited, which fell by Rs38.84 to Rs779.16 per share; Service Industries Limited followed it, which closed lower by Rs34.70 to Rs1,434.52 per share.

Analyst Muhammad Hasan Ather at JS Global said, “This rise is attributed to government plans for a significant Rs1.25 trillion bank loan at an interest rate below 11 percent, aimed at resolving circular debt.”

Additionally, anticipation of further monetary easing and declining global oil prices are positively influencing inflation expectations, boosting cyclical stocks. “Looking forward, a smooth IMF programme review could propel the market out of its consolidation phase, paying the way for further growth and stability,” he said.

Fauji Cement remained the volume leader with 57.215 million shares, which closed higher by Rs3.97 to Rs45.99 per share. Sui South Gas, with 23.758 million shares, followed it, which closed higher by Rs1.52 to Rs35.5 per share.

Other significant turnover stocks included Maple Leaf, WorldCall Telecom, At-Tahur Ltd, BO Punjab, Pak Petroleum, PSO, Pak Int Bulk and Pak Refinery. In the futures market, 318 companies recorded trading, 223 of which increased, 90 decreased and 5 remained unchanged.