Stocks closed higher on Friday as investor sentiment improved on the back of encouraging macroeconomic indicators and optimism surrounding the IMF programme.
The benchmark KSE-100 index rose over 400 points to settle above 117,300, buoyed by Pakistan's record current account surplus of $1.2 billion in March, lower inflation, steady remittances and speculation about an upcoming IMF tranche. Hopes of a further policy rate cut and fresh momentum for state-owned companies' privatisation also contributed to the market's bullish close.
"Stocks closed higher as investors weighed the robust economic data including a record current account surplus, low inflation and remittances for March 2025. Fitch is eyeing GDP growth to edge up to 3%, with a primary surplus of 2% of GDP in FY25 and a current account deficit of 1% of GDP," said Managing Director of Arif Habib Corp Ahsan Mehanti.
Speculations over the likely receipt of IMF's tranche, State Bank's policy easing next month and deliberations over the privatisation of state-owned enterprises played the role of catalysts in bullish close at the PSX, he added.
At the end of trading, the benchmark KSE-100 index posted a gain of 414.45 points, or 0.35%, and settled at 117,315.59.
Insight Securities Head of Sales Ali Najib said that ahead of the rollover week's commencement on Monday, the PSX had a range-bound day.
The KSE-100 index remained positive mostly throughout the day, barring a few minutes of negative price action where the index witnessed an intra-day low at 116,759 (down 142 points). However, the day ended at 117,316, translating into a gain of 414 points, or 0.35%.
Topline Securities wrote in its daily report that the KSE-100 index largely traded in the positive zone, which could be attributed to the positive news flow. Pakistan recorded its highest-ever monthly current account surplus in March at $1.195 billion and Pakistan's Real Effective Exchange Rate dropped to 101.62 in March from 102.25 in February.
The top positive contribution to the index came from UBL, Lucky Cement, Sazgar Engineering, Meezan Bank and Systems Limited as they cumulatively contributed 913 points, it said.
UBL continued to garner investor interest as it gained to close 9.57% higher, which could be attributed to its recent result announcement for Q1 2025 in which it posted the highest-ever diluted earnings per share (EPS) of Rs28.9 (up 126% YoY and 39% QoQ) along with an interim dividend of Rs11 per share. It also announced a stock split in the ratio of two shares for every one share held, Topline added.
Muhammad Hasan Ather of JS Global said that the KSE-100 index closed 414 points higher, extending the previous day's positive momentum. Pakistan's record-breaking current account surplus of $1.2 billion in March boosted investor confidence. This unprecedented economic indicator marked a dramatic turnaround from last month's $97 million deficit, providing strong fundamental support for the ongoing bull-run, he said.
With the market testing new highs, investors appeared increasingly optimistic about Pakistan's improving external position, which could translate into greater monetary flexibility and economic stability, the analyst added.
Overall trading volumes were recorded at 425.1 million shares, compared with the previous tally of 408.1 million. The value of shares traded during the day was Rs34.5 billion.
Shares of 446 companies were traded. Of these, 189 stocks closed higher, 197 fell and 60 remained unchanged.
Sui Southern Gas Co was the volume leader with trading in 38.2 million shares, gaining Rs1.64 to close at Rs42.47. It was followed by Pakistan International Bulk Terminal with 31 million shares, gaining Rs0.18 to close at Rs10.61 and K-Electric with 22.9 million shares, gaining Rs0.09 to close at Rs4.53. During the day, foreign investors sold shares worth Rs149 million, according to the NCCPL.
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