A robust rally marked trading at Pakistan Stock Exchange (PSX) on Thursday as the benchmark KSE-100 index climbed nearly 1,500 points, reflecting renewed investor confidence.
The surge was mainly driven by positive economic indicators, including expectations of further monetary easing by the State Bank of Pakistan (SBP) and a decade-low inflation reading of 1.5% for February 2025.
Additionally, optimism surrounding a potential agreement with the International Monetary Fund (IMF), coupled with a broader bullish momentum in Asian equities fuelled by hopes of tariff relief, propelled the bourse to a strong close.
Major sectors such as automobile assemblers, commercial banks and fertiliser kept the index in the green almost throughout the session.
Ahsan Mehanti of Arif Habib Corp observed that stocks closed bullish, led by across-the-board activity, amid speculation ahead of the SBP policy announcement on March 10.
Investor expectations of further monetary easing grew after T-bill yields remained flat and a decade-low inflation rate of 1.5% for February, he said. Additionally, the bull-run in Asian equities, driven by hopes of tariff relief under Trump, played the role of catalyst for positive close at the PSX, he remarked. At the end of trading, the benchmark KSE-100 index climbed up 1,459.42 points, or 1.30%, and settled at 113,713.18.
Topline Securities wrote in its review that the equity market registered a robust rebound, where the benchmark index surged to the intra-day high of 1,617 points. The rally was primarily driven by a sharp decline in global oil prices, which plunged to multi-year lows, lifting investor sentiment, it said.
Moreover, the speculation surrounding high-level IMF meetings on the settlement of long-standing circular debt further fuelled optimism across the board. The rally was predominantly led by Pakistan Petroleum, Oil and Gas Development Company (OGDC), Mari Petroleum, Pakistan State Oil and Sui Northern Gas Pipelines, which contributed 835 points, Topline added.
Arif Habib Limited (AHL) stated in its report that with the market pushing away from 112k on Thursday, it remained on track to hit "our weekly target of 115k".
A total of 69 shares rose, while 26 fell, where Pakistan Petroleum (+7.53%), OGDC (+4.54%) and Mari Petroleum (+3.41%) were the biggest contributors to index gains. On the downside, Meezan Bank (-1.31%), Systems Limited (-1.23%) and Nestle (-1.83%) were the largest drags, it said.
"After being stuck in a range for an extended period, the market is now poised for a more aggressive upward move, with one-sided price action expected. A weekly close above 115k will set the stage for new highs," AHL predicted.
KTrade Securities, in its market wrap, stated that the rally was led by the energy chain, fuelled by reports of a potential resolution to the circular debt issue.
The development boosted investor sentiment, with the energy sector emerging as a key driver of growth. It advised investors to remain cautious and focus on long-term investment strategies.
JS Global analyst Muhammad Hasan Ather mentioned that the stock market witnessed a rally, with the benchmark index closing up 1,459 points. News flow about possible resolution of the circular debt problem kept the market upbeat, he said.
The outcome of IMF review could provide further direction to the bourse and unlock additional funding, the analyst anticipated.
Overall trading volumes increased to 373.1 million shares compared with Wednesday's tally of 264 million.
Shares of 441 companies were traded. Of these, 220 stocks closed higher, 142 fell and 79 remained unchanged. The value of shares traded during the day was Rs26.2 billion.
Pakistan International Bulk Terminal was the volume leader with trading in 48.3 million shares, rising Rs0.48 to close at Rs10.06. It was followed by Fauji Cement with 28.2 million shares, gaining Rs2.09 to close at Rs42.02 and WorldCall Telecom with 22.6 million shares, up Rs0.02 to close at Rs1.36. During the day, foreign investors sold shares worth Rs433 million, the NCCPL reported.
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