Pakistan Stock Exchange (PSX) closed fiscal year 2024-25 at a record high on Monday, where the benchmark KSE-100 index surged 1,248 points, or 1%, to 125,627.
Investor sentiment strengthened and trading volumes remained robust following a $3.4 billion loan rollover by China, which pushed foreign currency reserves above $14 billion, helping Pakistan meet the International Monetary Fund's (IMF) reserves requirement. Optimism about new policy reforms and Pakistan topping Global Emerging Market (EM) Rankings in Default Risk Reduction fuelled the bullish momentum. The index recorded intra-day high of 1,369 points before closing a little lower with an increase of 1,248 points.
According to Ahsan Mehanti of Arif Habib Corp, stocks hit a new all-time high at the year-end close, driven by record trading volumes following the rollover of $3.4 billion financing by China, which boosted foreign exchange reserves to over $14 billion, meeting the IMF's June 30 target and supporting rupee stability.
Additionally, an anticipated cut in industrial power tariffs, the government's deliberations on the privatisation of state-owned enterprises and higher global equities played the role of catalysts in record close at the PSX, he added.
At the end of trading, the KSE-100 index recorded an increase of 1,248.25 points, or 1%, and settled at 125,627.31.
In its review, Topline Securities commented that the local bourse wrapped up the fiscal year on a high note, carrying forward last week's bullish momentum with another stellar performance. The benchmark index soared to intra-day high of 1,369 points before closing with a gain of 1,248 points (up 1%) to settle at 125,627.
The upbeat sentiment was fuelled by strong fiscal year-end flows and a significant external trigger – the rollover of $3.4 billion in China's commercial loans. This move helped Pakistan meet the IMF's foreign reserves requirement of around $14 billion, reinforcing investor confidence, it said. Heavyweights like Fauji Fertiliser Company (FFC), HBL, Bank AL Habib, UBL, Pakistan Oilfields, Faysal Bank and Pakgen Power led the charge, collectively contributing +724 points to the index.
Market participation remained robust with a total of 1,145 million shares changing hands and a trading value of Rs35.2 billion. "With sentiment riding high and macro support in place, the market appears well-positioned as it steps into the new fiscal year," remarked Topline.
In its commentary, Arif Habib Limited (AHL) said that the week saw a solid start, with the KSE-100 gaining 1% to close above 125,600 points. Some 71 shares rose, while 29 fell, where FFC (+1.52%), HBL (+3.51%) and Bank AL Habib (+2.7%) contributed the most to index gains.
On the flip side, Engro Fertilisers (-1.57%), Hub Power (-0.78%) and Pakistan Petroleum (-0.6%) were the biggest index drags, it said.
AHL noted that Pakistan topped Global EM Rankings in Default Risk Reduction over the last 12 months as default probability was down from 59% to 47%. This marks the sharpest decline among major emerging markets, ahead of Argentina (-7%), Tunisia (-4%) and Nigeria (-5%).
Additionally, the number of listed Pakistani companies valuing at over $1 billion rose to 11 as of June 27, 2025, up from just six in December 2023, AHL mentioned and expected the market to cross 127,000 in the current week, with support at 122,000.
Overall, shares of 481 companies were traded. Of these, 297 stocks closed higher, 152 fell and 32 remained unchanged.
WorldCall Telecom was the volume leader with trading in 139.9 million shares, gaining Rs0.13 to close at Rs1.58. It was followed by Kohinoor Spinning Mills with 96.4 million shares, gaining Rs1 to close at Rs6.50 and TPL Properties with 51.7 million shares, gaining Rs0.30 to close at Rs9.97. Foreign investors sold shares worth Rs1.2 billion, the NCCPL said.
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