KSE100 gains over 680 points amid favourable economic policies

KARACHI: Stocks witnessed another rally on Thursday and closed to an all-time high index amid favourable economic policies, international rating reviews, and international agreements, especially a staff-level agreement with the International Monetary Fund.

The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 share index increased by 684.25 points or 0.84 per cent to 81,839.86 points against 81,155.61 points recorded in the last session. The highest index of the day remained at 81,909.95 points while the lowest level was recorded at 81,418.12 points.

Analyst Ahsan Mehanti at Arif Habib Corp said, “Stocks closed at an all-time high as investors weigh Fitch ratings projections for a cut in SBP policy rates to 14 per cent, growth projections to 3.2 per cent amid SBP policy easing and agricultural growth, slowing inflation, and a cut in the fiscal deficit to 6.7 per cent in FY25.”

He said that the $7 billion Pakistan-IMF staff-level agreement, pushing to IMF-mandated fiscal reforms, played a catalyst role in the record close at the PSX.The KSE-30 index increased by 281.76 points or 1.08 per cent to 26,265.18 points against 25,983.42 points.

Traded shares increased by 29 million to 470.310 million shares from 441.338 million shares. The trading value dropped to Rs25.349 billion from Rs27.228 billion. Market capital expanded to Rs10.854 trillion against Rs10.727 trillion. Of 457 companies active in the session, 242 closed in green, 155 in red and 60 remained unchanged.

Naveed Nadeem, an analyst at Topline Securities, said the Pakistan stock market showed strong momentum, achieving a new peak for the KSE-100 index, which reached a high of 81,910 points earlier in the day before settling at 81,840 points, reflecting an increase of 684 points or 0.84 per cent.

The market’s positive movement was driven by sectors such as fertiliser, exploration & production (E&P), banking, and auto, supported by companies like Engro, UBL, OGDC, MTL, and MEBL, collectively contributing 423 points.

The highest increase was recorded in Rafhan Maize Products Company Limited shares, which rose by Rs130 to Rs7,730 per share, followed by PIA Holding Company Limited B, which increased by Rs80.87 to Rs1,037.30 per share. A significant decline was noted in Pakistan Tobacco Company Limited, which fell by Rs69.75 to Rs944.50 per share, Data Agro Limited followed it, which closed lower by Rs34.90 to Rs332.49 per share.

Brokerage Arif Habib Ltd stated the PSX witnessed another day of strong gains, with the KSE-100 and KSE-30 indices pushing further into uncharted territory.

In sector-specific news, PPL gained 1.58 per cent following the announcement that it has started production from the development well Adhi South-8, drilled in the Adhi Mining area. Additionally, FATIMA saw a 2.49 per cent rise after deciding to purchase various instruments of AGTL, which rose by 4.22 per cent.

These instruments include ordinary shares, convertible preference shares, non-convertible preference shares, and zero-coupon bonds/sukuk.The bullish sentiment has been underpinned by strong corporate earnings, favourable economic policies, and international agreements such as the recently signed Extended Fund Facility (EFF) with the IMF.

Pak Elektron remained the volume leader with 47.990 million shares which closed higher by Rs1.47 to Rs28.65 per share. PIA Holding Company followed it with 25.362 million shares, which closed higher by 24 paisas to Rs19.25 per share.

Other significant turnover stocks included PTCL, Fauji Fert Bin, WorldCall Telecom, Avanceon Ltd, Air Link Commun, The Organic Meat, Octopus Digital and Agritech Limited.In the futures market, 304 companies recorded trading, of which 190 increased, 105 decreased and 9 remained unchanged.