KSE100 closes above 81k mark

KARACHI: Stocks witnessed a huge rally on Monday and closed to an all-time high above 81k mark after the country made a successful staff-level agreement with the International Monetary Fund to secure a 37-month long $7 billion extended fund facility (EFF).

The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 share index surged by 1,211.51 points or 1.52 per cent to 81,155.61 points against 79,944.10 points recorded in the last session. The highest index of the day remained at 81,428.43 points while the lowest level was recorded at 80,743.46 points.

Analyst Ahsan Mehanti at Arif Habib Corp said, “Stocks closed all-time high as investors weigh the Pakistan-IMF staff-level agreement on the $7bn extended fund facility.”He said expected ease in SBP policy rates, settlement of the energy sector’s circular debt crises, surge in remittances, and rupee stability played a catalyst role in the record close in the earnings season rally at the PSX.

The KSE-30 index increased by 482.93 points or 1.89 per cent to 25,983.42 points against 25,500.49 points.Traded shares increased by 4 million shares to 441.338 million shares from 437.315 million shares. The trading value rose to Rs27.228 billion from Rs23.484 billion. Market capital expanded to Rs10.727 trillion against Rs10.630 trillion. Of 457 companies active in the session, 265 closed in green, 141 in red and 51 remained unchanged.

Maaz Mulla, an analyst at Topline Securities, said the KSE-100 index showed strong momentum, reaching an intraday high of 81,484 points before closing at 81,155, marking a 1.52 per cent increase.

He said this positive session was bolstered by Pakistan’s successful negotiation with the IMF, securing a new $7 billion extended fund facility for 37 months.In the E&P sector, POL surged after announcing a significant discovery at Jhandial 3, yielding an average of 715 barrels of oil and 8.9 million cubic feet of gas per day.

Leading stocks including SYS, MCB, FFC, POL, HUBC, and Engro contributed significantly, collectively adding 599 points to the index’s rise. The highest increase was recorded in Nestle Pakistan Limited shares, which rose by Rs105 to Rs7,150 per share, followed by Exide Pakistan Limited, which increased by Rs93.45 to Rs1,077.11 per share. A significant decline was noted in Rafhan Maize Products Company Limited, which fell by Rs99.27 to Rs7,600 per share, Pakistan Tobacco Company Limited followed it, which closed lower by Rs50.45 to Rs1,014.25 per share.

Brokerage Arif Habib Ltd stated the PSX began the week with a significant surge, with the benchmark KSE-100 index rallying over 800 points. This strong start comes in the wake of Pakistan signing a new 37-month extended fund facility (EFF) with the International Monetary Fund (IMF) amounting to $7 billion.

Both the KSE-100 and KSE-30 indices traded at new all-time highs, buoyed by the positive sentiment surrounding the IMF deal. Holding above Friday’s lows sets up these benchmarks for continued upside expansion.

The new IMF agreement is expected to provide crucial support to Pakistan’s economy, stabilising financial markets and boosting investor confidence. This deal is seen as a vital step in overcoming the country’s economic challenges, including high inflation and fiscal deficits.

With the next two days off due to Ashura, the market is anticipated to continue its upward momentum on Thursday and Friday. Analysts expect that the positive sentimentdriven by the IMF deal will sustain the rally, potentially leading to further gains in the coming sessions.

PIA Holding Company remained the volume leader with 35.758 million shares which closed lower by Rs1.53 to Rs19.01 per share. Pak Elektron followed it with 25.836 million shares, which closed higher by Rs1.76 to Rs27.18 per share.

Other significant turnover stocks included WorldCall Telecom, Air Link Commun, Avanceon Ltd, Fauji Fert Bin, Hub Power Co., K-Electric Ltd, Maple Leaf and PTCL.In the futures market, 304 companies recorded trading, of which 205 increased, 91 decreased and 8 remained unchanged.