IMF loan approval propels PSX to new high

Index gains 1,153 points to reach 169,456, gets support from mutual funds

KARACHI:

Bulls took the driving seat at the Pakistan Stock Exchange (PSX) on Tuesday as the market surged to new highs following approval of $1.3 billion in loan tranches under two different programmes by the International Monetary Fund (IMF).

The benchmark KSE-100 index rose 1,153 points, or 0.69%, to reach an all-time high at 169,456. Support came from consistent stock buying by local mutual funds and investor interest in market heavyweights. Other factors propelling the index higher included a 9% year-on-year (YoY) increase in remittances for November 2025 and an understanding reached between Pakistan and Indonesia to ramp up bilateral trade and strengthen cooperation in major social sectors.

"Bulls ignited a record-breaking surge at the PSX," remarked Topline Securities in its market review. "They commanded Tuesday's trading session with remarkable strength, lifting the benchmark index to breathtaking new heights," it said.

After soaring to the intra-day high of 1,297 points, the market closed at 169,456, gaining 1,153 points. The rally drew further strength from the IMF's approval of nearly $1.1 billion under the Extended Fund Facility (EFF) and $220 million under the Resilience and Sustainability Facility (RSF), a decision that keeps the two loan programmes worth $8.4 billion firmly on track and boosted investor sentiment, Topline said.

The stellar momentum was powered by robust and persistent buying from local mutual funds, which revived sentiment and kept the rally firmly anchored. Market heavyweights Fauji Fertiliser Company, Lucky Cement, HBL, PSO and Maple Leaf Cement led the advance, collectively contributing 640 points to the benchmark index. Participation remained vibrant, with total volumes hitting 1,032 million shares, it added.

Arif Habib Limited (AHL), in its report, commented that the march towards 170k continued with the KSE-100 gaining 0.69% to close above 169k. Some 64 shares rose while 34 fell with Fauji Fertiliser (+1.15%), Lucky Cement (+2.07%) and HBL (+2.12%) contributing the most to index gains. TRG Pakistan (-6.65%), OGDC (-0.71%) and PTCL (-3.17%) were the biggest index drags, it said.

AHL mentioned that Indonesian President Prabowo Subianto and Pakistan's Prime Minister Shehbaz Sharif agreed to increase and rebalance bilateral trade and promote cooperation in health and education sectors. At present, bilateral trade is about $4.5 billion, of which 90% comprises palm oil imports by Islamabad.

Additionally, remittances from overseas Pakistanis increased 9% YoY to $3.19 billion in November 2025. In 5MFY26, the inflows also rose 9% to $16.14 billion. In a major development, the IMF executive board approved immediate disbursements totalling $1.2 billion under the EFF and RSF. "The KSE-100 is now within the touching distance of 170k with support rising to 168k," AHL concluded.

Overall trading volumes increased to 1.03 billion shares against the previous tally of 783.1 million. The value of traded shares stood at Rs51.3 billion.

On the ready market, shares of 483 companies were traded. Of these, 272 closed higher, 179 dipped and 32 remained unchanged.

K-Electric was the volume leader with trading in 86.7 million shares, gaining Rs0.19 to close at Rs5.74. It was followed by Bunnys Limited with 62.1 million shares, rising Rs0.07 to close at Rs14.22 and PIA Holding Co with 41.2 million shares, higher by Rs3.60 to close at Rs47.63. Foreign investors were net sellers of shares worth Rs954.3 million, the National Clearing Company reported.