IMF optimism, easing tension lift PSX
Foreign funds would divert their liquidity into buying Pakistan's stocks. This would merely increases prices of shares and be profitable for those who already hold stocks. PHOTO: FILE
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Stocks rallied on Tuesday at the Pakistan Stock Exchange (PSX), reversing early losses to close significantly higher amid renewed investor optimism. The positive momentum was driven by reports of an upcoming IMF Executive Board meeting to discuss critical loan disbursements, alongside easing regional tensions and anticipated policy support.
Ahsan Mehanti of Arif Habib Corp remarked that stocks turned bullish following reports that the IMF Executive Board will meet on May 9 to discuss the Staff Level Agreement (SLA) for the new $1.3 billion Resilience and Sustainability Facility (RSF), as well as the first review of the US$7 billion External Fund Facility (EFF) for approval of a US$1 billion disbursement.
He added that easing political noise, alongside the US, China, and Turkey's urge to exercise restraint over Pak-India tensions, and expectations of policy easing, played a catalyst role in the bullish close at the PSX. At the close of trading, the benchmark KSE-100 index recorded an increase of 808.28 points, or 0.71%, and settled at 114,872.18.
In its market review, Topline Securities reported that the benchmark KSE-100 index saw significant ups and downs during today's session. It dropped sharply by 1,128 points early in the day due to selling pressure, especially from leveraged investors. However, the market showed a strong recovery in the second half, ending the session at 114,872 points.
Market sentiment improved as margin-related selling eased and investors began to buy quality stocks at lower levels, added Topline.
It added that the recovery was mainly supported by key stocks like Engro Holdings, Mari Petroleum, Systems Limited, MCB Bank, and Sui Northern Gas Pipelines. These names alone contributed around 760 points to the overall index gains, showing their strong impact on market movement. Investor activity remained healthy, with a total of 408 million shares traded and a market turnover of Rs29 billion, mentioned the brokerage.
In its commentary, Arif Habib Limited (AHL) stated that the market bounced once it surpassed 13,700 points, to gain 0.71% day-on-day. Some 60 shares rose while 34 fell, with Engro Holdings (+6.08%), Mari Petroleum (+3.82%) and Systems Limited (+3.7%) contributing the most to index gains. On the flip side, Lucky Cement (-2.71%), UBL (-1.07%) and Pakistan Petroleum Limited (-1.97%) were the biggest index drags, it observed.
Pakistan Petroleum Limited (-1.97%) announced 9MFY25 earnings per share (EPS) of Rs26.72, representing a 25% year-on-year (YoY) decrease and DPS of Rs5.0, coming in below expectations.
The Hub Power Company (-0.54%) also announced 9MFY25 EPS of Rs26.4, a 31% decrease YoY and DPS of Rs5.0 (already paid). No payout was a surprise in 3Q, remarked AHL. Air Link Communication Limited and Pakistan State Oil (PSO) also announced 9MFY25 financial results, with Air Link's 9MFY25 EPS Rs7.32, a 6% YoY decrease, below expectations.
PSO's 9MFY25 EPS amounted to Rs32.52, an increase of 14% YoY, slightly below expectations, noted the brokerage.
It added that upward moves continue to be seen as a counter-trend, with a prevailing bias to the downside.
JS Global analyst Muhammad Hasan Ather noted that the KSE-100 Index staged a strong recovery by the close. The market initially fell over 700 points due to profit-taking and cautious investor sentiment but rebounded sharply on value-buying in key heavyweight sectors.
Overall trading volumes decreased to 409.9 million shares compared with Monday's tally of 423.9 million.
Shares of 445 companies were traded. Of these, 211 stocks closed higher, 183 fell and 51 remained unchanged.
WorldCall Telecom was the volume leader with trading in 29.5 million shares, remaining stable to close at Rs1.26. It was followed by Cnergyico PK with trading in 14.8 million shares, gaining Rs0.27 to close at Rs7.81, and At-Tahur Limited with 14.8 million shares, falling Rs7.09 to close at Rs70.98. During the day, foreign investors sold shares worth Rs506.4 million, the National Clearing Company of Pakistan Limited (NCCPL) reported.
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