Stocks up 194 points amid hopes for circular debt resolution

KARACHI: The Pakistan Stock Exchange (PSX) witnessed a volatile session on Tuesday but closed in the green. The benchmark KSE-100 Index increased by 194 points amid hopes for circular debt resolution. However, investors opted for cautious activity.

The KSE-100 increased by 193.55 points, or 0.17 per cent, to 116,633.17 points, up from 116,439.62 points recorded in the last session. The highest index of the day remained at 116,904.55 points, while the lowest level was recorded at 115,877.88 points.

Ahsan Mehanti, an analyst at Arif Habib Corp, said that stocks showed recovery led by oil scrips as investors eye resolve over circular debt amid reports of the IMF’s conditional readiness to approve the Rs1.5 trillion government circular debt management plan.

He said that speculations ahead of the quarter-end close, China debt rollover and surging global crude oil prices played a catalyst role in the bullish close at the PSX.

The KSE-30 index increased by 118.57 points or 0.33 per cent to 35,821.62 points against 35,703.04 points.

Traded shares dropped by 43 million shares to 268.098 million shares against 311.97 million shares. The trading value decreased to Rs19.455 billion from Rs20.953 billion. Market capital expanded to Rs14.217 trillion against Rs14.182 trillion. Of the 436 companies active in the session, 155 closed in green, 214 in red and 67 remained unchanged.

Analyst Maaz Mulla at Topline Securities said the local bourse experienced a volatile session, attempting to recover from Monday’s sharp sell-off.

The index initially showed strength, climbing 464 points at its intraday high as buying activity resurfaced. However, the momentum was short-lived, with profit-taking pushing the index down to an intraday low of 561 points. Despite the turbulence, the market managed to regain some ground, closing at 116,633, up 193 points (0.17 per cent).

“This volatility can be attributed to the lack of clarity regarding the IMF review and the SLA agreement, which has kept investor sentiment cautious,” he said.

The positive momentum was largely supported by OGDC, HUBC, PSO, MEBL and SNGP, which collectively added 394 points to the index. On the flip side, SYS, TRG and UBL weighed on sentiment, erasing 153 points from the gains.

The highest increase was recorded in Unilever Pakistan Foods Limited, which rose by Rs23.50 to Rs23,549 per share, followed by Indus Motor Company Limited, which increased by Rs18.77 to Rs2,060 per share. A significant decline was noted in Rafhan Maize Products Company Limited, which fell by Rs91.06 to Rs9,066.01 per share; Service Industries Limited followed it, which closed lower by Rs25.45 to Rs1,292.98 per share.

Pak Elektron remained the volume leader with 23.534 million shares, which closed higher by 3 paisas to Rs45.90 per share. TRG Pak Ltd, with 22.825 million shares, followed it, which closed lower by Rs4.06 to Rs66.14 per share.

Other significant turnover stocks included Cnergyico PK, WorldCall Telecom, BO Punjab XD, PSO, Sui South Gas, Pak Refinery, Pak Int Bulk and Fauji Foods Ltd.In the futures market, 318 companies recorded trading, 98 of which increased, 217 decreased and 3 remained unchanged.