KSE-100 Index Posts 0.49% Weekly Gain as Local Buyers Counter Foreign Selling
KARACHI:
The Pakistan Stock Exchange (PSX) experienced a turbulent trading week as investors remained wary ahead of the FY26 budget announcement, now pushed to June 10, 2025, due to ongoing talks with the IMF.
Despite the uncertainty, the KSE-100 index managed a modest weekly advance of 0.49%, settling at 119,691 points. This was supported by encouraging developments, including China’s pledge to refinance $3.7 billion in commercial loans and the successful auction of treasury bills that raised Rs772 billion. However, foreign investors continued to exit, recording net outflows of $5.65 million, while domestic participants absorbed the selling pressure.
Monday began on a bearish note, with the KSE-100 index dropping 882 points (0.74%) to close at 118,221, as investors remained cautious amid the budget delay and the IMF’s unresolved circular debt settlement plan. Tuesday saw a slight rebound, as the market closed up 112 points, driven by gains in cement stocks fueled by hopes of a real estate package in the budget.
After a holiday break on Wednesday for Youm-e-Takbeer, Thursday brought renewed buying momentum. The index gained 638 points, reflecting optimism as the nation marked its nuclear achievements. The market ended the week on a strong note Friday, with blue-chip oil, banking, and fertiliser stocks leading the charge. The index rose 720 points, closing at 119,691.
Arif Habib Limited (AHL) observed that the index displayed mixed trends throughout the week. China’s move to refinance $3.7 billion in loans bolstered investor sentiment, while Nepra’s approval of K-Electric’s multi-year tariff at Rs39.9/unit and a 14% dollar-based return on equity added further optimism. Meanwhile, the government’s T-bill auction exceeded expectations, raising Rs772 billion against a target of Rs650 billion, with cut-off yields declining by 9 to 15 basis points across tenors. The State Bank’s reserves also grew by $70 million to reach $11.5 billion.
AHL reported the KSE-100 index’s 0.49% weekly increase (up 588 points), with sector-wise contributions led by cement (317 points), fertiliser (249 points), power generation and distribution (148 points), commercial banks (84 points), and refinery (80 points). On the flip side, automobile assemblers (-105 points), oil and gas exploration (-97 points), technology and communication (-53 points), food and personal care (-46 points), and oil and gas marketing (-43 points) dragged the index.
Top-performing scrips included Meezan Bank (230 points), Fauji Fertiliser Company (210 points), Lucky Cement (159 points), Pakgen Power (80 points), and DG Khan Cement (70 points). Average daily volumes surged to 662 million shares (up 34.6% week-on-week), though average traded value dipped to $78.9 million (down 6.5%), AHL noted.
JS Research’s Syed Danyal Hussain echoed these findings, highlighting that despite foreign investors’ net selling of $5.57 million, local buying provided support. He noted that the IMF’s visit concluded without finalising certain budget elements, leading to the budget presentation’s rescheduling. Virtual talks with the IMF are ongoing, focusing on boosting revenue and cutting expenditures. Meanwhile, China reaffirmed its commitment to refinance $3.7 billion in commercial loans before June’s end. Hussain also noted the State Bank’s net buying of $223 million from currency markets in February 2025, bringing total purchases for the fiscal year to $5.9 billion so far.
