Cement sector, Asian markets boost PSX

Express Tribune

17-04-2025

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The Pakistan Stock Exchange (PSX) on Thursday made impressive gains as the benchmark KSE-100 index jumped nearly 900 points, powered by encouraging economic data and a positive trend in regional markets.
Renewed investor interest sparked broad-based buying that kept bulls in control for almost throughout the session. A record current account surplus of $1.195 billion in March 2025 bolstered confidence in Pakistan's external account. The announcement that Kuwait had extended its oil credit facility further supported the market.
Investor sentiment was also buoyed by the recent upgrade of Pakistan's long-term foreign currency issuer default rating to "B-" with a stable outlook, which signalled improved creditworthiness and macroeconomic stability.
Earlier, trading began on a positive note, but the index soon dipped to the intra-day low of 115,818. Later, a strong performance from key sectors, particularly cement driven by a price increase of Rs25 per bag, helped offset losses, taking the index to the intra-day high of 117,216.
"Stocks showed a sharp recovery amid a record current account surplus of $1.195 billion in March while the extension of Kuwait's oil credit facility helped ease rupee volatility and attract foreign inflows," said Arif Habib Corp MD Ahsan Mehanti.
"The bullish close was also fuelled by Fitch's rating upgrade, strong Asian markets, higher crude prices and the upbeat remittance and inflation data," he added. At the end of trading, the benchmark KSE-100 index posted a robust gain of 881.03 points, or 0.76%, and settled at 116,901.13.
KTrade Securities, in its market wrap, wrote that Pakistan's bourse witnessed a positive trading session, gaining 0.76% day-on-day.
The market started on a strong note, following a positive trend in Asian equities. Reports of positive developments pertaining to the settlement of circular debt also contributed to the index's rise.
Bank, cement and oil and gas stocks played a significant role, with United Bank, Pakistan State Oil (PSO), National Bank of Pakistan (NBP), Mari Petroleum and Maple Leaf Cement being the key contributors, it said.
"PSX outlook is upbeat following a successful IMF review, which is expected to boost investor confidence," KTrade added.
Topline Securities reported that investor sentiment was buoyed by the record high remittances, which contributed to a historic current account surplus in March 2025. The surplus for the first nine months of FY25 reached $1.9 billion. Additionally, it said, the rally in cement stocks was fuelled by an increase in prices by Rs25 per bag, which further supported the market's upward momentum.
The index's performance was largely driven by heavyweight stocks such as United Bank, PSO, NBP, Mari Petroleum and Maple Leaf Cement, which contributed 515 points, Topline added.
According to JS Global analyst Muhammad Hasan Ather, the KSE-100 closed higher, gaining 0.8%, as bulls firmly reclaimed control. Multiple catalysts drove the rally, including Fitch's rating upgrade and the progress on circular debt resolution. These developments signal a potentially lower inflation ahead while the real estate tax relief further buoyed sentiment, he said.
The market's decisive break above 117,000 sets a solid momentum that could propel the index towards 118,500 in the near term, particularly if foreign inflows accelerate on improved economic indicators, he added.
The overall trading volume stood at 408.1 million shares against Wednesday's tally of 481.8 million. The value of shares traded during the day was Rs32.1 billion. Shares of 445 companies were traded. Of these, 212 stocks closed higher, 172 declined and 61 remained unchanged.
Maple Leaf Cement topped the volume chart with 23.8 million shares, rising Rs3.81 to close at Rs64.57. It was followed by The Bank of Punjab with 23.3 million shares, gaining Rs0.15 to close at Rs11.26 and Cnergyico PK with 17.9 million shares, up Rs0.02 to close at Rs8.53. During the day, foreign investors sold shares worth Rs41.5 million, the NCCPL reported.