KSE-100 index up 720 points on hopes for positive budget announcements

KARACHI: The Pakistan Stock Exchange (PSX) closed higher on Friday amid strong investor sentiment for declining inflation and expectations of positive announcements in the federal budget for the fiscal year 2025-26.

The benchmark KSE-100 index rose by 719.69 points, or 0.6 per cent, to 119,691.09 points, up from 118,971.41 points recorded in the last session. The highest index of the day remained at 119,913.88 points, while the lowest level was recorded at 118,771.84 points.

Analyst Ahsan Mehanti at Arif Habib Ltd said, “Stocks closed bullish led by blue chip scrips in the oil, banking and fertiliser sectors amid hopes for positive federal budget announcements.”He said that budgetary relief for oil refineries, real estate and the agriculture sector; the proposed levy of 1.5 per cent tax on imports to support industrials; and rupee stability played a catalytic role in the bullish close at the PSX.

The KSE-30 index increased by 249.55 points or 0.69 per cent to 36,454.15 points from 36,204.6 points. Traded shares dropped by 161 million shares to 580.318 million shares from 741.654 million shares. The trading value decreased to Rs22.743 billion from Rs23.911 billion. Market capital expanded to Rs14.503 trillion against Rs14.426 trillion. Of the 474 companies active in the session, 259 closed in green, 161 in red and 54 remained unchanged.

Nabeel Haroon, an analyst at Topline Securities, said continuing its previous day momentum, the KSE-100 index largely traded in the positive zone during the trading session to close at 119,691 level (up by +0.6 per cent)

Top positive contributions to the index came from FFC, MEBL, HUBC, PKGP, ENGROH and MCB, as they cumulatively contributed +668 points to the index.Traded value-wise; ATRL (Rs1.66 billion), DGKC (Rs878 million), HUBC (Rs807 million), FFC (Rs708 million), MEBL (Rs661 million) and MARI (Rs607 million) dominated the trading activity.

The highest increase was recorded in PIA Holding Company Limited B, which rose by Rs2,670.41 to Rs29,374.54 per share, followed by Khyber Textile Mills Limited, which increased by Rs253.70 to Rs2,790.71 per share. A significant decline was noted in Rafhan Maize Products Company Limited, which fell by Rs147.42 to Rs9,960.91 per share, Sapphire Fibres Limited followed it, which closed lower by Rs61.74 to Rs1,011.89 per share.

Muhammad Hasan Ather, an analyst at JS Global, said the rally was driven by strong investor sentiment amid declining inflation, a current account surplus, and Fitch’s upgrade of Pakistan’s credit rating to ‘B-’. Robust activity in the banking, energy and cement sectors further buoyed gains. “With over 1,358 points added in two sessions, momentum suggests continued upside, contingent on sustained macroeconomic stability and clarity on political and external financial developments. Investors remain cautiously optimistic.”

WorldCall Telecom remained the volume leader with 79.666 million shares, which closed lower by 6 paisas to Rs1.37 per share. K-Electric Ltd, with 47.700 million shares, followed it, which closed lower by 20 paisas to Rs5.32 per share.

Other significant turnover stocks included Cnergyico PK, Dewan Cement, PTCL, Pak Int Bulk, Fauji Foods Ltd, Pak Refinery, Sui South Gas, and Kohinoor Spining. In the futures market, 315 companies recorded trading, 144 of which increased, 167 decreased and 4 remained unchanged.