KSE Rallies 1,459 Points on Economic Optimism
The KSE-100 index's strong performance was also influenced by international developments, including US stocks sharply higher after US President Donald Trump exempted automakers from 25% tariffs on Canada and Mexico for a month. The market's upward momentum is expected to continue, driven by the IMF programme and current account balance, which are critical for short-term market performance.
The Pakistan Stock Exchange (PSX) witnessed a strong rally on Thursday, with the KSE-100 index climbing 1,459.42 points to settle at 113,713.18, driven by positive economic indicators and expectations of further monetary easing by the State Bank of Pakistan (SBP).
The surge was fueled by a decade-low inflation reading of 1.5% for February 2025, optimism surrounding a potential agreement with the International Monetary Fund (IMF), and a bullish momentum in Asian equities. Major sectors such as automobile assemblers, commercial banks, and fertiliser kept the index in the green throughout the session. Top stocks that contributed to the gains included Pakistan Petroleum, Oil and Gas Development Company (OGDC), Mari Petroleum, and Sui Northern Gas Pipelines.
The energy sector emerged as a key driver of growth, with reports of a potential resolution to the circular debt issue boosting investor sentiment. Institutional buying and expectations of a further rate cut by the central bank also drove the market, with buying observed in key sectors including automobile assemblers, cement, commercial banks, fertilizer, oil and gas exploration companies, and refinery. Index-heavy stocks such as PRL, HUBCO, PSO, SNGPL, MARI, OGDC, HBL, NBP, and UBL traded in the green.
The government's efforts to resolve the circular debt issue and the potential unlocking of another tranche of funding for the cash-strapped country under the $7 billion Extended Fund Facility (EFF) program are being closely watched by investors. The rupee appreciated 0.02% against the US dollar, settling at 279.82, adding to the overall positive sentiment in the market.
