Bulls dominate PSX with KSE-100 index surging by 800 points during intra day trade

The KSE-100 index climbed by more than 800 points to 80,287.08, reflecting a 1.01% rise.

The stocks maintained their dominance at the Pakistan Stock Exchange (PSX) with shares surging over 800.02 points during intraday trading on Wednesday.

The benchmark KSE-100 index rose by 795.95 points, or 0.99%, reaching 80,287.08 points, up from the prior close of 79,491.13 points at 12:30 pm.

Earlier this week, the Pakistan Stock Exchange (PSX) kicked off with a gain of 158.08 points, driven by an optimistic economic outlook amid rising exports and surging remittances.

The KSE-100 index began trading on a strong note, reaching an intraday high of 79,993.17 points in the morning session.

This early surge was fuelled by expectations of the International Monetary Fund (IMF)'s approval of a $7 billion Extended Fund Facility (EFF) on September 25, a strengthening rupee, and lower borrowing costs.

However, this momentum was interrupted by profit-taking in the second half, pulling the market down to an intraday low of 79,368.18 points. Despite this pullback, the index managed to close with a gain.

"Stocks closed higher amid an upbeat economic outlook driven by rising exports and surging remittances," said Ahsan Mehanti, Managing Director of Arif Habib Corp.

"The likely approval of the IMF's $7 billion EFF, a strong rupee, and falling leverage costs played a catalytic role in the bullish close."

At the end of the day, the KSE-100 index posted a gain of 158.08 points, or 0.2%, closing at 79,491.13.

Topline Securities noted that the trend from last week continued, with equities opening on a positive note. "Initially, the KSE-100 index witnessed bullish sentiment, but later in the session, the market saw some profit-taking."

During the session, stocks such as Meezan Bank, DG Khan Cement, United Bank, Engro Corporation, and Oil and Gas Development Company collectively lost 126 points.

In contrast, Mari Petroleum, Hub Power, and Engro Fertilisers saw buying interest, contributing 373 points.

Arif Habib Limited (AHL) commented on the mixed start to the week, with supply spillover from Friday. "Fifty-five shares rose while 43 fell, with Hub Power (+1.18%), Engro Fertilisers (+0.72%), and Mari Petroleum (+5.83%) providing the largest upside contributions, while Meezan Bank (-1.09%), DG Khan Cement (-4.56%), and United Bank (-0.58%) were the largest drags on the index."

"Buyers who anticipated a rate cut last week remain under pressure, but once the excess supply is absorbed, the market should resume its upward trend," AHL added.

JS Global analyst Mubashir Anis Naviwala echoed similar sentiments, noting that the KSE-100 index remained positive, gaining 158 points to close at 79,491.

"Investor confidence was buoyed by the finance minister's statement regarding the expected IMF board approval of a new $7 billion EFF this month," he said.

"Looking ahead, a buy-on-dip strategy could be wise, particularly in the banking, exploration and production (E&P), and technology sectors."

Overall trading volumes decreased to 536.2 million shares compared to Friday's tally of 916.05 million.

The value of shares traded stood at Rs8.9 billion.

A total of 443 companies' shares were traded, with 139 advancing, 253 declining, and 51 remaining unchanged. Pace (Pak) Limited led the trading volume, with 56.89 million shares changing hands, losing Rs0.4 to close at Rs6.96.

It was followed by Cnergyico PK, which traded 48.9 million shares and gained Rs0.1 to close at Rs4.16, and WorldCall Telecom, which saw 40.22 million shares traded, gaining Rs0.01 to close at Rs1.39.

Foreign investors purchased shares worth Rs135.63 million during the session, according to the National Clearing Company of Pakistan Limited (NCCPL).