With the benchmark KSE-100 index reaching the intra-day high of around 1,100 points before closing with an advance of 663 points, Pakistan Stock Exchange (PSX) on Monday scored notable gains.
A number of elements contributed to the increase, including the successful ending of the International Monetary Fund (IMF) review, which resulted in substantial advancement toward receiving the second $1 billion loan tranche under the Extended Fund Facility (EFF).
Rising global crude oil prices and the IMF’s decision to cut the tax collecting objective for FY25 were noted by analysts as other sources of the optimistic trend. The government’s efforts to eliminate the circular debt pile-up also elicited substantial market response.
After the IMF review ended with notable progress towards a staff-level agreement for the release of over $1 billion in loan tranche and speculation about the likely approval of over $1 billion worth of Climate Resilience Facility, stocks closed higher, claims Ahsan Mehanti of Arif Habib Corp.
He also mentioned how the decline in FY25 tax collecting objective by the IMF to Rs12.37 trillion drove up international crude oil prices and the bull-run in global stocks, so acting as triggers in positive closing at the PSX.
The benchmark KSE-100 index rose 663.42 points, or 0.57%, at the end of trade to land at 116,199.59.
Topline Securities notes in its evaluation that the stock market had a good session; the benchmark index peaked at 1,091 points. Close at 116,199, it gained 663 points.
Though a Rs1.25 trillion agreement still needed final clearance, the government’s efforts to address the power-sector circular debt helped to impact the improved performance. Moreover, the brokerage company stated the IMF hailed the development on its $7 billion loan programme as “strong,” notwithstanding the lack of a staff-level agreement.
Mari Petroleum, Pakistan State Oil (PSO), Lucky Cement, Oil and Gas Development Company (OGDC), and The Searle Company—which together added 658 points to the index—driven the market’s gains most of all. On the other hand, Topline saw Fauji Fertiliser Company, Engro Fertilisers and Hub Power dragging the index down by 200 points.
At the beginning of the week, Arif Habib Limited (AHL) said the KSE-100 index experienced accelerated upward momentum to cross 116,000 points.
Mari Petroleum (+7.32%), PSO (+4.3%), and Lucky Cement (+1.97%) helped some 49 shares rise while 45 dropped, it said. At the Spinwam-I well, Mari Petroleum discovered gas and condensate with gas flow of 20.485 million cubic feet day and condensate flow of 117 barrels daily.
Before the lender could deliver the next loan tranche, Pakistan’s government raised the levy on petroleum to match IMF’s expectations, AHL pointed out. “Support is at 115,000 points; new all-time highs should be hit in the near term against this backdrop,” it said.
Based on encouraging comments on the IMF review, JS Global analyst Muhammad Hasan Ather observed that the PSX started its optimistic trend once more. Before profit-taking trimmed gains, the index shot to the intra-day high of 116,627 +/-1,090 points. It closed at 116,199 plus 666 points.
Supported by the projected resolution of circular debt issue and a positive outcome of the IMF assessment, the expert added, looking forward the market was predicted to keep its bullish trend.
From Friday’s count of 360.5 million shares, overall trading volumes rose to 507.5 million.
448 companies’ worth of shares were traded. Of these, 211 dropped, 58 stayed the same, and 179 closed higher. Shares sold during the day brought in Rs34.1 billion.
With trading in 48.3 million shares, Pak Electron was the volume leader; it gained Rs2.92 to close at Rs45.54. Following it was The Bank of Punjab with 46.6 million shares, gaining Rs0.38 to close at Rs11.67 and Pakistan International Bulk Terminal with 36.4 million shares, gaining Rs0.26 to conclude at Rs10.18. The NCCPL recorded that foreign investors sold shares valued Rs362.8 million throughout the day.
