PSX jumps 1,200 points on IMF loan hopes

Fertiliser, tech and cement sectors lead gains as investors take fresh positions

KARACHI:

The Pakistan Stock Exchange (PSX) opened the week on a strong note as bullish sentiment dominated trading throughout the session. Investor confidence was buoyed by expectations that the International Monetary Fund (IMF) Executive Board would approve the long-awaited $1 billion disbursement for Pakistan later in the day.

The benchmark KSE-100 index touched the day's peak at 168,755 and the low at 167,386, ultimately settling at 168,303, up 1,218 points, or 0.73%. The rally reflected optimism across key sectors, particularly cement, banking, fertiliser and energy.

The anticipated IMF's approval reduced uncertainty in the market, encouraging both institutional and individual investors to take fresh positions. The inflow is expected to strengthen Pakistan's external account position, support the currency and guide fiscal reforms.

KTrade Securities, in its market wrap, wrote that the PSX kicked off the week with a solid rise, opening with gap-up following a controlled consolidation phase. The KSE-100 index advanced 1,218 points, keeping momentum firmly on the front foot.

Led by Fauji Fertiliser and with additional strength from Systems Limited, NBP, PTCL, DG Khan Cement and Pakistan Petroleum, the market saw broader confidence, it said. Looking ahead, sentiment remains constructive as investors positioned themselves ahead of the IMF tranche approval. On the domestic front, the launch of the Chief of Defence Forces office added another layer of optimism, KTrade said.

JS Global analyst Mubashir Anis Naviwala stated that the PSX rallied strongly as the KSE-100 gained 1,218 points, with volumes rising to 783 million shares. Fertiliser, technology and cement sectors led the gains, while a late surge pushed the index near its intra-day high. Sentiment improved, suggesting further upside potential, though some profit-taking may emerge, he predicted, adding that the overall tone remained constructive with broad sector support.

Topline Securities observed that the KSE-100 index ended trading on a firm footing, advancing 1,218 points. Throughout the day, the benchmark fluctuated within a range, touching the intra-day high of 168,755 and dipping to the low of 167,386. Overall sentiment remained upbeat, buoyed by continued buying from local mutual funds, it said.

Further support came from approval of PTCL's acquisition of Telenor Pakistan, coupled with market anticipation ahead of the IMF Executive Board meeting on Pakistan's second review.

Key index movers were Fauji Fertiliser, Systems Limited, National Bank, Pakistan Telecommunication Company and DG Khan Cement, which contributed around 846 points to the index gains, Topline wrote.

Arif Habib Limited's (AHL) Ali Najib remarked that bullish momentum was driven by several key developments including the IMF board meeting to consider approval of a $1.2 billion tranche for Pakistan. Also, the ECC is scheduled to review the Circular Debt Management Plan for FY26 on Tuesday.

The momentum was reinforced by the Ministry of Defence's announcement of the appointment of the chief of defence forces, reducing uncertainty on the political front. On the corporate side, PTCL hit the upper cap post-company notice that the Pakistan Telecommunication Authority had given conditional approval for acquiring control of Telenor Pakistan and Orion Towers, Najib said. Overall trading volumes increased to 783.1 million shares against the previous tally of 686.8 million. Shares of 482 companies were traded. Of these, 244 closed higher, 197 fell and 41 remained unchanged.