PSX wins 1% wow at investor trust

Despite a submissive start, the Pakistan Stock Exchange (PSX) recorded a positive trend this week, the KSE-100 index obtaining 1% week a week (WOW), closing at 115,536 points. The investor’s feeling has improved the weekend, mainly determined by the role of $ 1 billion, and the optimism that surrounds the ongoing discussions with the International Monetary Fund (IMF) for the first revision of the $ 7 billion extended fund program (EFF).

Every day, PSX closed almost flat months, decreasing by 42.36 points, or 0.04%, settling at 114,356,34, against the background of uncertainty regarding the monetary policy decision of the Pakistan State Bank (SBP), later on the day and result of the reviews with the IMF.

On the next trading day, the market continued its descending trajectory, closing -smaller by 179 points, or 0.16%, at 114,177.66. The analysts attributed the decline of the thin trade and the prudence of investors following the SBP decision to maintain the rate of unchanged policy against the background of inflationary pressures, volatility of prices and challenges of external account.

On Wednesday, PSX again registered a subjected trading session, as the KSE-100 index recorded a decrease of 93.12 points, or 0.08%, settling at 114,084.54 due to the lack of positive triggers.

On Thursday a PSX stage registered a beautiful return, because the KSE-100 index increased by 1,009.70 points, or 0.89%, settling to 115,094.24, on the back of optimism about a positive result of the FMI in progress and Moody’s modernization of the banking sector perspective.

On the last day of trading of the week, PSX closed on a Bullish note, because investors’ confidence remained strong, determined by the expectations of a favorable IMF review and an optimistic perspective of income. At the end of the trading, the KSE-100 reference index registered an increase of 441.93 points, or 0.38%, to settle at 115,536.17.

According to Arif Habib Limited (AHL), he wrote in his weekly report that, at the beginning of the week, the committee decided to maintain the interest rates at 12%, contrary to the expectations of a 50bps reduction, culminating with the negative impact on the initial market. By the middle of the week, the impulse moved to the green area regarding the anticipation of the potential development related to the settlement of the energy circular debt. Moreover, the IMF has agreed to reduce the FBR tax collection target, which led to an additional improvement in feelings. Moreover, remittances from Pakistani over the seas increased by 39% Yoy to $ 3.1 billion in February 2025, the highest in June 2024. The KSE-100 index closed to 115,536 points, reflecting a 1,137 points, +0.99% wow.

In the sector, the largest positive contributions came from exploration and production (234 points), petroleum marketing companies (194 points), banks (179 points), cement (118 points) and fertilizer (110 points). In contrast, negative contributions came from engineering (46 points), glass and ceramic (45 points), leather and tangs (37 points) and car assemblies (36 points).

Stairs, the largest positive taxpayers were large (303 points), PSO (174 points), HBL (65 points), EFER (53 points) and DGKC (51 points). On the other hand, the largest negative contributions came from MTL (52 points), SRVI (37 points), PPL (34 points), HMB (28 points) and ISL (28 points).

The foreign sale continued this week, registering at $ 2.61 million, compared to a net sale of $ 5.3 million last week. The major sale was witnessed in commercial banks ($ 2.8 million), followed by E&P ($ 1.2 million). On the local side, the purchase was reported by banks/IFF ($ 110.9 million) and other organizations ($ 1.7 million). The average volumes reached 337 million shares (up 16% wow), while the average traded value set to $ 79 million (up 21.1% wow).

Other major news were Engro that completed the assignment of Agriproducts EXIMP for RS2.4 billion, Haleon Pakistan carrying its first Centrum counseling to Kenya, OGDCL, resuming Rajian-11 heavy oil and restoring production to 1,000 BPD, petitioning for electric for a reduction of Bank Bank.

Topline Securities attributed the 1% weekly earnings of the KSE-100 index to the $ 1 billion profitability in China and positive evolutions in the IMF negotiations. Other key factors included the SBP decision to maintain the policy rate at 12%, with the February 2025 remittances reaching $ 3.1 billion (up 39% Yoy and 4% month a month), and the sales of cars in Pakistan reach 12,084 units (rising by 24% Yoy, but decreasing by 29%).

The volume and average value traded daily during the week were located at 337 million shares (up 16% wow) and RS22 billion (up to 21% wow).