Stock market index, KSE-100, climbs more than 1%, reaching a new record high.
Stock Exchange Booms in Pakistan 🇵🇰
The Stock Exchange in Pakistan (PSX) went wild on Thursday, with the KSE-100 Index surging past the 119,962 mark, setting a new all-time high. The bulls charged hard, pushing the market to uncharted territories, all thanks to optimism swirling around upcoming budget announcements.
The KSE-100 enjoyed a positive momentum throughout the day, reaching an intra-day high of 119,990.30. By the end of trading, it settled at 119,961.91, marking a notable gain of 1425.39 points or 1.2% compared to the previous day.
According to brokerage house Topline Securities, the refinery sector played a significant role in the day's surge. The sector flourished due to ongoing discussions concerning a binding legal framework between Oil Marketing Companies (OMCs) and refineries. This framework aims to resolve disputes over product upliftment and HSD imports, bringing more clarity and stability to the supply chain.
Heavyweight stocks such as UBL, ENGRO, HUBC, EFERT, and MEBL led the charge, contributing a collective 656 points to the index.
Some exciting developments unfolded behind the scenes. On Wednesday, the State Bank of Pakistan (SBP) received the second tranche of Special Drawing Rights (SDR) 760 million, equivalent to $1.02 billion, from the International Monetary Fund (IMF). This money will be added to the country's foreign exchange reserves for the week ending May 16th, 2025.
Also, the Power Division is all set to brief the IMF on key aspects of the power sector, including circular debt development, power sector subsidy size and composition, and carbon levy legislation. This virtual meeting is scheduled for May 15-16, 2025.
Shehbaz Sharif's government has made new commitments to the IMF, focusing on reforming Pakistan's energy sector, including both power and gas.
On Wednesday, the PSX witnessed a volatile trading day, thanks to strategic profit-taking. However, things picked up pace on Thursday as optimism restored and the Pakistani rupee improved against the US dollar. The local currency appreciated 0.04% and settled at 281.61 on Thursday.
Volume on the all-share index increased to 698.96 million from the previous 609.06 million. Despite the increased volume, the value of shares declined from Rs41.91 billion to Rs39.09 billion in the previous session. Pak Refinery led the volume, followed by Cnergyico PK and K-Electric Ltd.
Overall, 312 companies registered an increase, 107 showed a fall, and 39 remained unchanged.
While Pakistan's economy is stabilizing with a projected GDP growth of 2.7% for FY25, challenges persist, including weak agriculture and industrial sectors and high population growth that complicates poverty reduction efforts. It's essential to implement high-impact reforms, including improving the tax system, adjusting import tariffs, and bolstering the business environment to sustain this growth.
- The gain in the KSE-100 Index, reaching an all-time high of 119,962, was largely due to positive momentum and optimism about upcoming budget announcements in Pakistan.
- The refinery sector played a significant role in the surge of the KSE-100 Index on Thursday, with ongoing discussions about a binding legal framework between Oil Marketing Companies (OMCs) and refineries contributing to the sector's growth.
- Heavyweight stocks such as UBL, ENGRO, HUBC, EFERT, and MEBL led the charge on the Stock Exchange in Pakistan (PSX), collectively contributing 656 points to the index.
- The Power Division will brief the International Monetary Fund (IMF) on key aspects of the power sector, including circular debt development, power sector subsidy size and composition, and carbon levy legislation, on May 15-16, 2025.
- Despite a decrease in the value of shares on the all-share index on Thursday, the overall performance of the PSX was positive, with more companies registering an increase than a fall, and 312 companies ending the day with a positive position.
