Stocks maintained their dominance at the Pakistan Stock Exchange (PSX) with the benchmark KSE-100 index soaring by 800.02 points during intraday trading on Wednesday.
By 12:30 pm, the KSE-100 index had risen by 795.95 points, or 0.99%, reaching 80,287.08 points from the previous close of 79,491.13 points.
The week began positively for the PSX, with an initial gain of 158.08 points driven by an optimistic economic outlook fueled by rising exports and increasing remittances. The KSE-100 index started strong, reaching an intraday high of 79,993.17 points in the morning session.
This early surge was driven by expectations of the International Monetary Fund (IMF) approving a $7 billion Extended Fund Facility (EFF) on September 25, a strengthening rupee, and lower borrowing costs.
However, profit-taking in the latter half of the session led to a pullback, with the index dropping to an intraday low of 79,368.18 points. Despite this, the index ended the day with a gain.
Ahsan Mehanti, Managing Director of Arif Habib Corp, noted, “Stocks closed higher amid a positive economic outlook supported by rising exports and increasing remittances.” He highlighted that the anticipated IMF approval, a strong rupee, and lower borrowing costs played a crucial role in the bullish close.
At the close, the KSE-100 index had gained 158.08 points, or 0.2%, ending at 79,491.13 points.
Topline Securities observed that the positive trend from the previous week continued, with equities opening strong but experiencing some profit-taking later. Stocks such as Meezan Bank, DG Khan Cement, United Bank, Engro Corporation, and Oil and Gas Development Company collectively lost 126 points, while Mari Petroleum, Hub Power, and Engro Fertilisers saw buying interest, adding 373 points.
Arif Habib Limited (AHL) commented on the mixed start to the week, noting that supply from Friday influenced trading. Fifty-five shares rose, while 43 fell. Hub Power (+1.18%), Engro Fertilisers (+0.72%), and Mari Petroleum (+5.83%) contributed significantly to the index’s rise, while Meezan Bank (-1.09%), DG Khan Cement (-4.56%), and United Bank (-0.58%) were major drags.
“Buyers expecting a rate cut last week are under pressure, but once excess supply is absorbed, the market should resume its upward trend,” AHL added.
JS Global analyst Mubashir Anis Naviwala echoed these sentiments, noting the KSE-100 index’s positive performance, gaining 158 points to close at 79,491. He attributed the positive investor sentiment to the finance minister’s comments on the anticipated IMF board approval for a new $7 billion EFF.
He suggested a buy-on-dip strategy, particularly in the banking, exploration and production (E&P), and technology sectors.
Overall trading volumes decreased to 536.2 million shares from Friday’s 916.05 million, with the total value of shares traded at Rs8.9 billion. A total of 443 companies’ shares were traded, with 139 advancing, 253 declining, and 51 unchanged. Pace (Pak) Limited led in trading volume with 56.89 million shares traded, closing at Rs6.96 after losing Rs0.4. It was followed by Cnergyico PK, with 48.9 million shares traded, closing at Rs4.16, and WorldCall Telecom, with 40.22 million shares traded, closing at Rs1.39.
Foreign investors purchased shares worth Rs135.63 million during the session, according to the National Clearing Company of Pakistan Limited (NCCPL).
