KARACHI:
After a one-day closure to observe Youm-e-Takbeer—celebrating Pakistan’s nuclear achievements and military strength—the Pakistan Stock Exchange (PSX) saw robust gains on Thursday.
The benchmark KSE-100 index rallied, supported by a positive global market outlook. Equities worldwide rose after a US court blocked President Trump’s new tariffs, boosting investor confidence at home. European stocks and US futures also climbed, setting a buoyant tone for local trading.
Investors were further buoyed by optimism ahead of Pakistan’s Economic Survey and the upcoming federal budget, scheduled for June 9 and 10. Anticipation of relief measures for the agriculture sector, expectations of a shrinking fiscal deficit, and possible US trade incentives for Pakistani exports all contributed to the positive momentum.
Energy stocks gained ground thanks to rising crude oil prices, while blue-chip shares led the index higher, fluctuating between an intra-day low of 118,482 and a high of 119,639.
Ahsan Mehanti, Managing Director of Arif Habib Corp, said that stocks ended higher amid pre-budget speculation and improved sentiment as Pakistan-India tensions eased. He noted that expectations for trade incentives from the US, a narrowing fiscal deficit, and surging oil prices supported the market’s bullish close.
By day’s end, the KSE-100 had advanced by 638.50 points, or 0.54%, to finish at 118,971.41.
Topline Securities noted in its market review that the PSX began the session on a strong note and ended the day with a 638-point jump (+0.54%) at 118,971. Intra-day excitement saw the index surge by up to 1,306 points, driven by widespread buying in key sectors like cement, banks, fertiliser, and oil, which together added 413 points to the index.
Arif Habib Limited (AHL) commented that after breaching last week’s low, the index remained range-bound and was positioned to climb toward the 118,200 level.
Out of the 466 companies traded, 268 advanced, 159 declined, and 39 remained unchanged. Lucky Cement (+2.82%), United Bank (+1.19%), and Fauji Fertiliser (+0.66%) were the top gainers. In contrast, K-Electric (-6.28%), Pakistan Services (-2.28%), and MCB Bank (-0.39%) were the main laggards.
AHL also noted positive macroeconomic signals, including China’s assurance to refinance a $3.7 billion commercial debt due between March and June, and Power Minister Awais Leghari’s statement that the government would review K-Electric’s new tariffs.
“Heading into the final session of the week, the KSE-100 is down 0.11% week-on-week, but remains on track for a sustained move towards 120,000,” it said.
KTrade Securities observed that trading remained focused on blue-chip stocks, with cement, banks, fertiliser, communication, and oil sectors collectively contributing 450 points to the index’s gains. It predicted that investor focus would continue to be on these heavyweight stocks, despite budget concerns.
JS Global analyst Muhammad Hasan Ather reported that investor sentiment was boosted by hopes of fiscal discipline and fresh IMF inflows, resulting in a 0.5% jump in the index and an intra-day high of 119,639 points. He said signals of potential tax relief for salaried workers and alignment of the budget with IMF guidelines also played a role in the upbeat mood.
Trading volumes rose to 741.7 million shares, compared to 690.4 million in the previous session, with Rs23.9 billion worth of shares changing hands.
WorldCall Telecom led trading with 137.5 million shares, gaining Rs0.13 to close at Rs1.43. K-Electric followed with 119.6 million shares, shedding Rs0.37 to settle at Rs5.52. Pakistan Telecommunication Company traded 65.7 million shares, gaining Rs1.95 to close at Rs26.23.
According to the National Clearing Company, foreign investors purchased shares worth Rs7.7 million during the session.
