KARACHI: After a brief overnight break, the Pakistan Stock Exchange (PSX) continued its upward trajectory, driven by economic optimism that sparked aggressive value-hunting, propelling the benchmark index to an unprecedented level near the 120,000 barrier on Thursday.

Topline Securities Ltd said the bulls took the market to new heights fuelled by optimism surrounding upcoming budget announcements. The benchmark index witnessed a remarkable intraday rally, climbing as much as 1,453 points before closing with an impressive gain of 1,425.38 points at 119,961.91, marking a 1.20pc increase and setting a new all-time high.

Ahsan Mehanti of Arif Habib Corporation said a slump in cut-off yields of various tenors of Pakistan Investment Bonds by up to 90bps and receipt of the second $1bn IMF tranche under the Extended Fund Facility tossed the index to new highs.

He also noted that rupee stability and speculations in the pre-budget session after IMF projections for higher revenue collection at Rs20tr ensuring sustainable debt servicing and higher growth at 3.6pc for FY26 were other positive triggers that led to a bullish close at the PSX.

Refinery stocks closed the session in green amid sector-specific developments. The government is working to finalise a binding legal framework between OMCs and refineries, with key clauses like take-or-pay to resolve ongoing disputes over product upliftment and high-speed diesel imports — a move expected to bring greater clarity and stability to the supply chain.

On the upside, heavyweights such as United Bank Ltd, Engro Holdings, Hub Power, Engro Fertiliser, and Meezan Bank led the charge, collectively contributing 656 points to the index.

Ali Najib, Head of Sales at Insight Securities, said the KSE 100 index attained the highest-ever closing since its inception as investors strengthened their positions by cherry-picking in the backdrop of substantial boost in the State Bank of Pakistan’s forex holdings with the arrival of IMF tranche.

Barron’s, a prominent American weekly magazine published by Dow Jones & Company, has recently described Pakistan’s macroeconomic improvement as a ‘mini-miracle.’ The publication also informed the global investor community that “Pakistan isn’t that risky anymore.” This acknowledgment represents a significant positive development for Pakistan, particularly in enhancing the country’s perception on the global investment radar.

The market participation was robust as the trading volume rose 14.76pc to 698.96 million shares while the traded value dipped 6.73pc to Rs39.08 billion day-on-day.

Published in Dawn, May 16th, 2025