PSX pares gains, ends 369 points higher

Pakistan Stock Exchange (PSX) remained in the black on Wednesday but failed to hold on to its robust early momentum as profit-taking after optimism about the government's talks with the International Monetary Fund (IMF) pared gains.

The benchmark KSE-100 index registered a moderate rise of 368.92 points, or 0.22%, to settle at 169,969.33. During the session, the index touched the intra-day high of 171,492.53 and low of 169,872.14. In the morning, the market opened strongly, with the KSE-100 surging 947.20 points, or 0.56%, at 170,547.60 by 9:38 am. The index climbed further before gradually slipping down as the session progressed.

Investor interest was linked to expectations of progress in talks between Pakistan's government and the visiting IMF mission. Market participants were closely watching developments pertaining to the ongoing programme review.

Additionally, sentiment was supported by steps being taken to strengthen the domestic financial and energy framework, with the Ministry of Finance unveiling a strategic action plan for the local currency bond market and the government considering direct LNG import by power plants and private companies. According to Arif Habib Limited (AHL) Deputy Head of Trading Ali Najib, the PSX experienced a positive trading session, where the benchmark KSE-100 index gained 369 points (+0.22%) to close at 169,969, just below the key psychological level of 170k, thereby ending September 2026 below the milestone.

During the session, the benchmark index remained in positive territory, reaching the intra-day high of 171,493 before losing momentum amid selling pressure, which pushed the market below 170k by the close.

On the macro front, Najib mentioned, the Ministry of Finance unveiled a strategic action plan for the local currency bond market, aimed at improving secondary market liquidity, broadening the investor base and strengthening the rupee-denominated securities framework.

Meanwhile, as per media reports, Pakistan was considering allowing power plants and private companies to directly import LNG as the government sought to strengthen energy supplies without adding pressure on state finances.

HBL, Meezan Bank, Lucky Cement, Fatima Fertiliser, Fauji Fertiliser, Engro Holdings, Engro Fertilisers, UBL, Systems Ltd and Mari Energies collectively added 467 points to the index.

Going forward, Najib believes near-term market movement is likely to remain volatile and range bound, with 170,000 being a key psychological pivot. "The IMF review, geopolitical developments and oil prices will remain the key catalysts for market direction," he added.

Topline Securities observed that the market remained stable around 170,400-170,600 during early trading; however, late-session selling intensified after 2 pm, pushing the index below the 170,000 level. Market sentiment remained cautious and risk-off amid persistent geopolitical uncertainty. Rising crude oil prices with Brent around $107 per barrel further pressured investors due to concerns over Pakistan's import bill, inflation and external account, it wrote.

Cumulatively, trading volumes rose to 591.2 million shares compared with 568 million a day ago. The value of traded shares stood at Rs20.2 billion.

In the ready market, shares of 495 companies were traded. Of these, 253 stocks closed higher, 195 fell and 47 remained unchanged.

Pakistan International Bulk Terminal was the volume leader with trading in 73.4 million shares, gaining Rs0.11 to close at Rs14.68. Foreign investors sold shares worth Rs205.4 million, the National Clearing Company reported.