Fertiliser sector leads gains at PSX

With mutual fund support, KSE-100 index jumps 1,291 points

KARACHI:

Renewed optimism swept through the Pakistan Stock Exchange (PSX) on Wednesday as the benchmark KSE-100 index recorded significant gains of nearly 1,300 points over increased focus of investors on fertiliser companies and mutual fund support.

Buying momentum was also observed in other key sectors including auto assemblers, cement, commercial banks, oil & gas exploration, oil marketing, power generation and refineries.

There was a broader shift in market dynamics as Bloomberg reported that retail investors were helping extend Pakistan stock market's surge, marking a rare moment of confidence. The KSE-100 index has climbed roughly 40% in 2025, making it one of Asia's best-performing markets as political stability and rosy returns fuelled enthusiasm, it added. During the day, the index traded between the high of 162,742 and low of 161,279. At close, it posted a surge of 1,291 points, or 0.80%, to settle at 162,226.

KTrade Securities highlighted in its market wrap that PSX closed on a positive note, primarily driven by strength in Fauji Fertiliser, now classified as a Shariah-compliant stock, which continued to outperform in an otherwise muted market. Mutual fund buying appears to have provided additional support.

Fertiliser stocks contributed the most to the index, where Fauji Fertiliser led the charge. It was followed by Pakistan Petroleum, Oil and Gas Development Company, Pakistan State Oil, Engro Fertilisers and Maple Leaf Cement, it said.

According to Arif Habib Limited (AHL), the KSE-100 index maintained early gains until the close of trading and regained the 162k level. Some 52 shares rose while 46 fell, with Fauji Fertiliser (+5.63%), Pakistan Petroleum (+3.95%) and Oil and Gas Development Company (+2.39%) contributing the most to index gains.

In contrast, Engro Holdings (-1.02%), Pakistan Services (-4.58%) and TPL REIT Fund I (-9.77%) were the biggest index drags. On the corporate side, Shield Corporation (+10%) formally requested the PSX for delisting and buying back ordinary shares held by minority shareholders. Also, Pakistan Petroleum (+3.95%) was reclaiming land from sea to create a launch pad for ramping up oil and gas exploration, AHL said.

JS Global analyst Muhammad Hasan Ather wrote that the market's recent ascent, a nearly 41% rally in the current calendar year, was largely attributed to improved economic stability, successful IMF-backed reforms and a surge in retail investor participation.

Midday profit-taking was swiftly absorbed on Wednesday, reflecting underlying resilience. The immediate outlook suggests continued volatility but the medium-term forecast remains constructive, supported by expectations of further economic stabilisation, he said.

Topline Securities commented that the bourse concluded trading on a decidedly positive trajectory, supported in part by Fauji Fertiliser Company that increased influence following its recent addition to the KMI-30 index effective from Monday.

Overall trading volumes decreased to 1.03 billion shares compared with Tuesday's tally of 1.55 billion. The value of traded shares stood at Rs45.2 billion.

Shares of 484 companies were traded. Of these, 194 closed higher, 244 dropped and 46 remained unchanged.

WorldCall Telecom topped the volumes chart with trading in 160.1 million shares, losing Rs0.14 to close at Rs1.91. It was followed by Bank Makramah with 111.7 million shares, gaining Rs0.13 to close at Rs6.12 and Beco Steel with 78.7 million shares, falling Rs0.48 to close at Rs7.70. Foreign investors were net sellers of shares worth Rs436.4 million.