KARACHI: Following a brief one-day break, the Pakistan Stock Exchange (PSX) surged past the 80,000 mark, gaining nearly 1,000 points. The rally was fueled by speculation surrounding the International Monetary Fund (IMF) executive board meeting scheduled for September 25, which is expected to approve a $7 billion Extended Fund Facility (EFF).
The KSE-100 index began the day positively but dipped to an intra-day low of 79,798.75 points before climbing steadily throughout the trading session. The market’s upward momentum was bolstered by favorable economic indicators, including rising remittances, increased exports, and a decreasing trade deficit.
Further boosting investor confidence was the Asian Development Bank’s (ADB) confirmation of a $2 billion annual concessionary loan for Pakistan until 2027 and a stable rupee. The index reached an intra-day high of 80,587.44 before closing near its peak with significant gains of 970 points.
Ahsan Mehanti, MD of Arif Habib Corp, attributed the bullish close to optimism surrounding the IMF loan approval and robust economic data, including the ADB’s loan affirmation and a strong rupee.
The KSE-100 index ended the day with a rise of 970.20 points, or 1.22%, settling at 80,461.34. Topline Securities reported that the index had opened on a positive note, briefly hitting an intra-day high of 1,096 points before closing at 80,461, up 1.22%.
Broad-based buying was evident in blue-chip stocks, with heavyweights like Mari Petroleum, Engro Fertilisers, United Bank, Meezan Bank, and Fauji Fertiliser making substantial gains. The cement sector also saw activity, with Pioneer Cement reporting its FY24 results, including earnings per share of Rs22.79 and a cash dividend of Rs10 per share.
Arif Habib Limited (AHL) noted that the KSE-100’s strong performance followed a midweek holiday. While 58 shares advanced and 37 declined, significant contributors to the index’s rise included Mari Petroleum (+10%), Engro Fertilisers (+3.82%), and United Bank (+2.19%). Conversely, Bank AL Habib (-1.31%), Thal Limited (-3.86%), and Dawood Hercules Corporation (-0.91%) were the largest detractors.
JS Global analyst Mubashir Anis Naviwala highlighted the stock market’s intra-day gain of over 1,000 points, driven by clarity regarding the IMF loan program. He recommended a buy-on-dips strategy, focusing on the cement, exploration and production (E&P), and technology sectors.
Overall trading volumes decreased to 400.2 million shares, compared to 536.2 million on Monday. The total value of shares traded was Rs15.9 billion. Among the 439 companies traded, 186 closed higher, 199 declined, and 54 remained unchanged.
WorldCall Telecom led the volume with 32.2 million shares traded, closing at Rs1.36 after a loss of Rs0.03. It was followed by TRG Pakistan with 22.1 million shares, gaining Rs5.45 to close at Rs59.90, and Pace (Pak) Ltd with 19.6 million shares, losing Rs0.02 to close at Rs6.94.
Foreign investors sold shares worth Rs1.2 billion during the day, according to the NCCPL.
