Pakistan stocks hit all-time high as banking rally, rupee strength fuel optimism
The KSE-100 Index gained 2,051 points, or 1.43 percent, to close at 145,088 after rising more than 2,150 points during intraday trade.
'Banking stocks remained the star performers as HBL, NBP, MEBL, and UBL collectively contributed 1,017 points to the benchmark,' said Maaz Mulla, Vice President of Equity Sales at Topline Securities.
'HBL and NBP hit their upper circuits during intraday trade, although mild profit-taking toward the close trimmed some gains.'
Investor appetite remained strong, with traded volume climbing to 784 million shares and turnover reaching Rs 52.7 billion, both notably higher than in recent sessions. Bank of Punjab (BOP) led volumes with 67 million shares traded.
The rally comes as Pakistan shows signs of macroeconomic recovery following the IMF Executive Board's approval of a new $7 billion loan program in September 2024. The program, which succeeded a short-term Stand-By Arrangement, focuses on structural reforms, energy sector overhauls, and fiscal consolidation.
The country's rupee has also rebounded sharply in recent weeks, buoyed by steady remittance inflows and an aggressive crackdown on the dollar black market launched in mid-2024. Foreign exchange reserves have crossed $11.3 billion, according to central bank data, their highest level in nearly three years.
'Stocks [reached a] new all-time high amid strong economic outlook,' said Ahsan Mehanti of Arif Habib Corp.
'Surging rupee amid government subsidies for fully funded remittances scheme, surging global crude oil prices and government resolve to settle power sector circular debt easing industrial tariff, financial restructuring played [a] catalyst role in bullish close at PSX.'
Energy reforms, particularly the government's recent plan to restructure circular debt and reduce industrial power tariffs, have played a central role in restoring investor confidence in manufacturing and large-scale industry.
Improved current account dynamics and a lower inflation trajectory, down to 12.6 percent in July from a high of over 30 percent in 2023, have also helped fuel sentiment.
Analysts say the market is likely to maintain momentum if policy continuity holds and reforms under the IMF program remain on track.
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