KARACHI: Shrugging off the gloomy conditions caused by uncertainty regarding the ongoing IMF review, the stock market resumed its upward trajectory on intense anticipation of further easing monetary policy, with the benchmark index settling above 113,000 on Thursday.
The leadership of multinationals has urged the State Bank of Pakistan to adopt a cautious approach while deciding its policy rate. Meanwhile, trade and industry representatives sought a 500 basis point cut to bring the interest rates down to single digits and revive economic activities, as the Consumer Price Index (CPI)-based inflation was recorded at 1.5pc in February.
Topline Securities Ltd said the equity market witnessed a robust rebound, with the benchmark index surging to an intraday high of 1,617 points. This rally was primarily driven by a sharp decline in international oil prices, which plunged to multi-year lows, uplifting investor sentiment.
Moreover, speculation surrounding a high-level meeting on the clearance of the long-standing circular debt further fuelled optimism.
As a result, the index closed at 113,713.18 points, up 1,459.42 points or 1.30pc day-on-day.
The rally was predominantly led by Pakistan Petroleum, Oil and Gas Development Company, Mari Energies, PSO, and Sui Northern Gas Pipeline, collectively contributing 835 points to the index.
Ahsan Mehanti of Arif Habib Corporation attributed the rally to speculations ahead of the SBP’s Monetary Policy Committee’s meeting on March 10. This context will be crucial for determining the direction of monetary policy after T-bill yields remain flat at the overnight auction.
Ali Najib, Head of Sales at Insight Securities, said rumours about the settlement of Rs1.3tr circular debt attracted buying interest in the energy stocks, which supported an across-the-board bullish momentum.
The overall market activity showed improvement as the trading volume rose 41.34pc to 373.09 million shares while the traded value surged 91.16pc to Rs26.24bn day-on-day.
Stocks contributing significantly to the traded volume included Pakistan International Bulk Terminal (48.30m shares), Fauji Cement (28.19m shares), WorldCall Telecom (22.57m shares), Maple Leaf Cement (19.46m shares) and Oil and Gas Development Company Ltd (18.04m shares).
Published in Dawn, March 7th, 2025
