KSE-100 surges 1,139 points as IMF staff-level agreement boosts investor confidence

KARACHI: The Pakistan Stock Exchange (PSX) witnessed a bull run on Wednesday. The benchmark KSE-100 index surged by 1,139 points following a staff-level agreement with the IMF, which fuelled investor optimism.

The KSE-100 index increased by 1,139.14 points, or 0.98 per cent, to 117,772.31 points, up from 116,633.17 points recorded in the last session. The highest index of the day remained at 118,220.88 points, while the lowest level was recorded at 117,178.23 points.

Ahsan Mehanti, an analyst at Arif Habib Corp, said that stocks closed bullish after the IMF reached a staff-level agreement to unlock $1.3 billion under the Resilience and Sustainability Facility (RSF) and $1 billion under the existing $7 billion Extended Fund Facility (EFF) bailout programme. Additionally, the government lowered its March 2025 inflation forecast to 1.0 per cent.

Rising global crude oil prices and an updated feasibility study confirming $60 billion in Reko Diq reserves, with a share for OGDC and PPL, served as key catalysts for the bullish close at the PSX, he said.

The KSE-30 index increased by 474.69 points or 1.33 per cent to 36,296.31 points against 35,821.62 points. Traded shares rose by 88 million shares to 356.729 million shares against 268.098 million shares. The trading value increased to Rs37.498 billion from Rs19.455 billion. Market capital expanded to Rs14.364 trillion against Rs14.217 trillion. Of the 438 companies active in the session, 206 closed in green, 167 in red and 65 remained unchanged.

Analyst Naveed Nadeem at Topline Securities said the local stock market performed strongly, with the benchmark index reaching a high of 1,588 points. It closed at 117,772 points, marking a gain of 1,139 points (0.98%). “The surge was fuelled by investor optimism following a staff-level agreement with the IMF, which boosted market confidence,” he said.

The market’s gains were primarily driven by UBL, OGDC, PPL, MEBL and MARI, which together contributed 883 points to the index.

The highest increase was recorded in Philip Morris (Pakistan) Limited, which rose by Rs67.07 to Rs737.77 per share, followed by Pakistan Tobacco Company Limited, which increased by Rs56.22 to Rs1,258.27 per share. A significant decline was noted in Unilever Pakistan Foods Limited, which fell by Rs549 to Rs23,000 per share; Service Industries Limited followed it, which closed lower by Rs38.17 to Rs1,254.81 per share.

Analyst Muhammad Hasan Ather at JS Global said bulls took charge of the trading floor on Thursday as investor sentiment surged following the IMF’s staff-level agreement for the first review. Additionally, optimism was fuelled by a feasibility study conducted by OGDC and PPL on Reko Diq, further intensifying the rally. “Looking ahead, we recommend investors capitalise on gains at higher levels, particularly ahead of the extended Eid holidays,” he suggested.

Pak Elektron remained the volume leader with 29.179 million shares, which closed higher by Rs1.58 to Rs47.48 per share. PSO, with 26.879 million shares, followed it, which closed higher by Rs1.06 to Rs419.93 per share. Other significant turnover stocks included Cnergyico PK, BO Punjab XD, Pak Petroleum XD, Engro Fert XD, WorldCall Telecom, TPL REIT Fund I, Fauji Cement and Sui South Gas.

In the futures market, 318 companies recorded trading, 180 of which increased, 132 decreased and 6 remained unchanged.