KSE-100 index surges 639 points amid macroeconomic clarity

KARACHI: The Pakistan Stock Exchange (PSX) closed higher on Thursday amid macroeconomic clarity and expectations of fiscal discipline. The market responded positively ahead of the federal budget despite no breakthrough in ongoing talks with the IMF.

The benchmark KSE-100 index rose by 638.5 points, or 0.54 per cent, to 118,971.41 points, up from 118,332.91 points recorded in the last session. The highest index of the day remained at 119,639.47 points, while the lowest level was recorded at 118,481.98 points.

Muhammad Hasan Ather, an analyst at JS Global, said investor sentiment strengthened amid expectations of fiscal discipline and IMF loan inflows. Optimism was fuelled by signals of upcoming tax relief for the salaried class and alignment of the upcoming budget with IMF guidelines.

Despite no breakthrough in ongoing IMF talks, markets responded positively to macroeconomic clarity. “The index moved within a narrow range, reflecting cautious positioning ahead of the June 10 federal budget and the June 9 economic survey,” he said.

The KSE-30 index increased by 235.97 points or 0.66 per cent to 36,204.6 points from 35,968.64 points. Traded shares rose by 51 million shares to 741.654 million shares from 690.389 million shares. The trading value increased to Rs23.911 billion from Rs23.828 billion. Market capital expanded to Rs14.426 trillion against Rs14.347 trillion. Of the 466 companies active in the session, 268 closed in green, 159 in red and 39 remained unchanged.

Maaz Mulla, an analyst at Topline Securities, said the local bourse kicked off the day on a strong footing, wrapping up a robust session with the benchmark index surging by 638 points (+0.54 per cent) to close at 118,971. Intraday excitement peaked with a high of 1,306 points, reflecting bullish sentiment across the board.

Driving the day’s upward momentum were heavyweights like LUCK, UBL, FFC, ENGROH and MARI, collectively contributing 413 points to the index.Cyclical stocks also stole the spotlight, with INIL, ASTL, ISL, MLCF, LUCK and DGKC catching strong investor interest and finishing the day in the green, outperforming their previous closes.

The highest increase was recorded in PIA Holding Company Limited B, which rose by Rs2,427.65 to Rs26,704.13 per share, followed by Khyber Textile Mills Limited, which increased by Rs230.64 to Rs2,537.01 per share. A significant decline was noted in Rafhan Maize Products Company Limited, which fell by Rs175.71 to Rs10,108.33 per share; Supernet Technologies Limited followed it, which closed lower by Rs66.88 to Rs818.69 per share.

Analyst Ahsan Mehanti at Arif Habib Ltd said, “Stocks closed higher amid speculations in the pre-budget session, eyeing relief for the agriculture sector and easing fears over Pakistan-India tensions.”

He said that expectations over US tariffs and trade incentives supporting exports, falling fiscal deficit and surging global crude oil prices played a catalytic role in the bullish close at the PSX.WorldCall Telecom remained the volume leader with 137.517 million shares, which closed higher by 13 paisas to Rs1.43 per share. K-Electric Ltd, with 119.635 million shares, followed it, which closed lower by 37 paisas to Rs5.52 per share.

Other significant turnover stocks included PTCL, Sui South Gas, Cnergyico PK, Dewan Cement, Telecard Limited, Fauji Cement, Cres Star Ins, and Waves Corp Ltd. In the futures market, 315 companies recorded trading, 228 of which increased, 84 decreased and 3 remained unchanged.