KSE-100 up 802 points on hopes for circular debt resolution

KARACHI: The Pakistan Stock Exchange (PSX) continued the bullish momentum on Tuesday. The benchmark KSE-100 index closed higher by 802 points amid progress towards circular debt resolution.

The KSE-100 index increased by 801.5 points, or 0.69 per cent, to 117,001.09 points, up from the 116,199.59 points recorded in the last session. The highest index of the day remained at 117,202.10 points, while the lowest level was recorded at 116,490.82 points.

Ahsan Mehanti, an analyst at Arif Habib Corp, said, “Stocks closed bullish as investors weigh the $12 million current account deficit in February, dropping by 97 per cent MoM, and speculations over a resolution to circular debt crises.”

He said that a strong rupee, surging global crude oil prices and a bull run in global equities played a catalyst role in the bullish close at the PSX. The KSE-30 index increased by 227.87 points 0.63 per cent to 36,134.24 points against 35,906.36 points.

Traded shares dropped by 58 million shares to 449.484 million shares against 507.512 million shares. The trading value decreased to Rs29.178 billion from Rs34.105 billion. Market capital expanded to Rs14.266 trillion against Rs14.21 trillion. Of the 447 companies active in the session, 206 closed in green, 180 in red and 61 remained unchanged.

Analyst Maaz Mulla at Topline Securities said the positive sentiment was largely driven by encouraging economic developments. According to news reports, the IMF has permitted Pakistan to borrow Rs1.25 trillion ($4.5 billion) from domestic banks to help manage the Rs2.4 trillion circular debt in the power sector without increasing public debt. “Investor confidence was further lifted as the IMF shared a draft of the Memorandum of Economic and Financial Policies (MEFP) with Pakistani authorities, marking progress towards a staff-level agreement under the $7 billion Extended Fund Facility (EFF). This reinforced hopes for sustained financial support and economic stability,” he said.

The index’s gains were primarily fuelled by FFC, ENGROH, HUBC, TRG, and LUCK, which collectively added 541 points. The highest increase was recorded in Unilever Pakistan Foods Limited, which rose by Rs222.49 to Rs23,482.50 per share, followed by Nestle Pakistan Limited, which increased by Rs117.17 to Rs7,467.17 per share. A significant decline was noted in Philip Morris (Pakistan) Limited, which fell by Rs24.39 to Rs659.64 per share; PIA Holding Company Limited B followed it, which closed lower by Rs21.74 to Rs920.87 per share.

Analyst Muhammad Hasan Ather at JS Global said the bullish momentum was driven by active buying in key sectors including oil and gas companies and OMCs. “Positive sentiment stemmed from news that the IMF allowed borrowing of Rs1.25 trillion to reduce power sector debt records. The market outlook remains optimistic, with expected improvements in fiscal stability and the improved sectoral performance, particularly in energy and utilities, bolstering market activity,” he said.

Pak Int. Bulk remained the volume leader with 59.131 million shares, which closed higher by 48 paisas to Rs10.66 per share. BO Punjab XD, with 36.47 million shares, followed it, which closed higher by 15 paisas to Rs11.82 per share.

Other significant turnover stocks included Fauji Cement, Pak Refinery, TRG Pak Ltd, K-Electric Ltd., Pak Elektron, WorldCall Telecom, Flying Cement, and Barkat Frisian Agro. In the futures market, 315 companies recorded trading, 170 of which increased, 137 decreased and 8 remained unchanged.