The Pakistan Stock Exchange (PSX) opened with renewed vigour on Thursday following a day's closure to mark Youm-e-Takbeer, which reflects the nation's nuclear achievements and military strength.
The KSE-100 index gained ground as global equities rallied after a US court blocked the imposition of President Trump's new tariffs. European shares and US stock futures rose, lifting the mood at the PSX.
Additionally, optimism ahead of the presentation of Pakistan Economic Survey and the federal budget on June 9 and 10, respectively, fuelled a buying spree, with expectations of relief for the agriculture sector, a narrowing fiscal deficit and export-friendly US trade measures.
Crude oil gains supported energy stocks while blue chips led the advance of the index, which oscillated between the intra-day high of 119,639 and intra-day low of 118,482.
Arif Habib Corp MD Ahsan Mehanti commented that stocks closed higher amid speculation in the pre-budget session with investors expecting relief for the agri-sector and as Pakistan-India tensions eased.
Expectations of US tariff and trade incentives supporting exports, a falling fiscal deficit and surging global crude oil prices aided the bullish close at the PSX, he added.
At the end of trading, the benchmark KSE-100 index posted a notable rise of 638.50 points, or 0.54%, and settled at 118,971.41.
Topline Securities, in its review, wrote that the local bourse kicked off trading on a strong footing and wrapped up the session with a surge of 638 points (+0.54%) at 118,971.
Intra-day excitement peaked with a high of 1,306 points, reflecting bullish sentiment across the board. Heavyweights stocks of sectors like cement, bank, fertiliser and oil contributed 413 points to the index gains, it said.
Arif Habib Limited (AHL), in its commentary, said that after taking out last week's low, the KSE-100 remained range bound and was poised to push towards 118.2k.
Some 65 shares rose while 34 fell with Lucky Cement (+2.82%), United Bank (+1.19%) and Fauji Fertiliser (+0.66%) being the top positive contributors. On the contrary, K-Electric (-6.28%), Pakistan Services (-2.28%) and MCB Bank (-0.39%) were the biggest drags.
On the macro front, AHL said, China assured Pakistan of refinancing a commercial debt of $3.7 billion maturing between March and June. Also, Power Minister Awais Leghari stated that the government would review K-Electric's new tariffs.
"Heading into the week's final session, the KSE-100 is down 0.11% week-on-week, with a sustained move towards 120k likely," it added.
KTrade Securities remarked that activity at the PSX remained focused on blue-chip stocks, with cement, bank, fertiliser, communication and oil shares adding a cumulative 450 points to the index.
Despite budget concerns, confidence emerged towards the end of the rollover week and focus was expected to be on blue chips, it predicted.
According to JS Global analyst Muhammad Hasan Ather, stocks witnessed a 0.5% surge, climbing 1,306 points to the intra-day high of 119,639, as investor sentiment strengthened amid expectations of fiscal discipline and IMF loan inflows.
Optimism was fuelled by signals of upcoming tax relief for the salaried class and alignment of the budget with the IMF guidelines, he added.
Overall trading volumes increased to 741.7 million shares compared with previous tally of 690.4 million. The value of shares traded during the day was Rs23.9 billion.
Shares of 466 companies were traded. Of these, 268 stocks closed higher, 159 fell and 39 remained unchanged.
WorldCall Telecom was the volume leader with trading in 137.5 million shares, rising Rs0.13 to close at Rs1.43. It was followed by K-Electric with 119.6 million shares, losing Rs0.37 to close at Rs5.52 and Pakistan Telecommunication Company with 65.7 million shares, gaining Rs1.95 to close at Rs26.23. During the day, foreign investors bought shares worth Rs7.7 million, the National Clearing Company reported.
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