KSE-100 gains 663 points as IMF review shows progress

KARACHI: The Pakistan Stock Exchange (PSX) started the week with the bullish momentum. The benchmark KSE-100 index closed higher by 663 points amid progress towards a staff-level agreement between Pakistan and the International Monetary Fund (IMF) for the extended fund facility programme.

The KSE-100 index increased by 663.42 points, or 0.57w per cent, to 116,199.59 points, up from the 115,536.17 points recorded in the last session. The highest index of the day remained at 116,626.83 points, while the lowest level was recorded at 115,883.22 points.

Ahsan Mehanti, an analyst at Arif Habib Corp, said that stocks closed higher as the IMF review concluded with significant progress towards a staff-level agreement (SLA) for the release of over $1 billion tranche under the extended fund facility (EFF), alongside speculation about the potential approval of a new $1 billion crisis response facility (CRF) programme.

He said that the IMF’s downward revision of the FY25 tax collection target to Rs12.37 trillion, rising global crude oil prices, and a bullish trend in global equities acted as key catalysts for the strong close at the PSX.

The KSE-30 index increased by 248.24 points 0.7 per cent to 35,906.36 points against 35,658.12 points.

Traded shares rose by 147 million shares to 507.512 million shares against 360.456 million shares. The trading value increased to Rs34.105 billion from Rs21.039 billion. Market capital expanded to Rs14.210 trillion against Rs14.125 trillion. Of the 448 companies active in the session, 179 closed in green, 211 in red and 58 remained unchanged.

Analyst Naveed Nadeem at Topline Securities said, “This performance was influenced by the government’s initiatives to tackle Pakistan’s power circular debt, though the Rs1.25 trillion deal is still awaiting final approval. Furthermore, the IMF described the progress of the $7 billion loan program as “strong,” despite the absence of a staff-level agreement.”

The market’s gains were mainly driven by MARI, PSO, LUCK, OGDC, and SEARL, which collectively added 658 points to the index. Conversely, FFC, EFERT and HUBC applied downward pressure, reducing the index by 200 points.

The highest increase was recorded in PIA Holding Company Limited B, which rose by Rs85.69 to Rs942.61 per share, followed by Mari Energies Limited, which increased by Rs44.32 to Rs649.98 per share. A significant decline was noted in Unilever Pakistan Foods Limited, which fell by Rs152.99 to Rs23,260.01 per share; Colgate-Palmolive (Pakistan) Limited followed it, which closed lower by Rs35.39 to Rs1,441.87 per share.

Analyst Muhammad Hasan Ather at JS Global said the PSX resumed its bullish momentum on the back of positive updates regarding the IMF review. “Looking ahead, the market is expected to maintain its bullish momentum, supported by the anticipated resolution of circular debt and a favourable outcome of the IMF review,” he said. “Investors are advised to adopt a ‘buy on dips’ strategy, with a focus on oil & gas, automobile and tech stocks.”

Pak Elektron remained the volume leader with 48.322 million shares, which closed higher by Rs1.92 to Rs45.54 per share. BO Punjab XD, with 46.581 million shares, followed it, which closed higher by 38 paisas to Rs11.67 per share.

Other significant turnover stocks included Pak Int Bulk, WorldCall Telecom, Fauji Cement, Fauji Foods Ltd, Silk Bank Ltd, PIA Holding Company, Pak Refinery and The Searle Company.In the futures market, 321 companies recorded trading, 176 of which increased, 140 decreased and five remained unchanged.