PSX Optimism Over Smooth IMF Review Sees Gain 1000 Point

The Pakistan Stock Exchange (PSX) witnessed a robust bullish trend on Thursday, with the KSE-100 Index soaring by 1,009.70 points, reflecting a positive change of 0.89%.

The index closed at 115,094.24 points, marking a substantial recovery from the previous day’s closing at 114,084.54 points.

The significant rally in the stock market was primarily driven by renewed investor confidence, bolstered by expectations of a smooth conclusion to Pakistan’s ongoing review with the International Monetary Fund (IMF).

This optimism spurred aggressive buying activity across major sectors, as noted by brokerage firm Topline Securities.

Surge in Trading Volume and Market Capitalization

The market turnover exhibited a remarkable increase, with a total of 382,791,629 shares changing hands during the trading session. This marked a significant rise compared to the 299,630,187 shares traded on the previous day.

The total share value also saw a substantial boost, surging to Rs. 25.407 billion from the prior session’s Rs. 20.262 billion.

A total of 444 companies actively traded their shares on the Pakistan Stock Exchange. Among them, 232 companies recorded gains, while 156 companies witnessed declines.

1. Bank of Punjab (BOP) – 48,802,683 shares traded at Rs. 13.45 per share.
2. Barkat Frisian Agro – 24,680,233 shares traded at Rs. 28.40 per share.
3. Fauji Cement (FCCL) – 19,660,929 shares traded at Rs. 45.29 per share.

Stocks with Highest Gains

The biggest gainers of the day included:

• Hoechst Pakistan Limited recorded the maximum increase, with its share price soaring by Rs. 85.30, closing at Rs. 3,199.88.
• PIA Holding Company Limited followed closely, witnessing a rise of Rs. 64.22, closing at Rs. 928.47 per share.

Stocks with Declining Prices

Despite the overall bullish trend, a few stocks faced downward pressure:

• Unilever Pakistan Foods Limited experienced the largest decrease, with its share price dropping by Rs. 122.40, closing at Rs. 23,217.20.
• Services Industries Limited was the second-largest loser, with a decline of Rs. 36.15 per share, settling at Rs. 1,383.77.

Factors Driving the Bullish Trend in PSX

The anticipation of a successful IMF review fueled optimism in the financial markets. Investors expect that a smooth agreement with the IMF will ensure continued economic stability and support foreign investment inflows.

The increase in market liquidity, evidenced by the higher traded volume, indicates renewed investor participation. Additionally, improved foreign portfolio investment (FPI) inflows contributed to enhanced market confidence.

The positive performance of regional and global stock markets had a spillover effect on the Pakistan Stock Exchange. Investor sentiment was further strengthened by global economic stability and favorable commodity prices.