KARACHI: The Pakistan Stock Exchange (PSX) ended on a high note on Thursday, with the benchmark KSE-100 index nearing the 160,000-point mark, amid positive market sentiment as the International Monetary Fund (IMF) mission began its review of Pakistan’s economic performance under the ongoing $7 billion Extended Fund Facility (EFF).

Investors were buoyed by the government’s recent agreement with 18 banks, securing a Rs1.2 trillion loan to address the power sector’s circular debt. However, electricity consumers will shoulder the burden of the loan through a Rs3.23 per unit surcharge over the next six years. Additionally, the government has allowed the commercial import of used vehicles in line with IMF conditions.

The KSE-100 index closed at 159,208, recording a gain of 1,043 points, or 0.66pc. The index briefly hit an intraday high of 159,538, reflecting strong bullish momentum. Leading contributors to the rise included Hub Power, Engro Holdings, Mari Energies, Engro Fertiliser, and Habib Bank, which collectively added 1,145 points to the index. However, profit-taking in stocks like Lucky Cement, Oil and Gas Development Company, and United Bank offset some of the gains, reducing the overall increase by 325 points.

Trading volumes were lower, with the number of shares traded falling 6.03pc to 1.67 billion, though the traded value increased by 1.38pc to Rs55.2 billion. K-Electric topped the volume chart, with 406 million shares exchanged.

Ali Najib, Deputy Head of Trading at Arif Habib Ltd., highlighted that the market rally was sparked by the government’s resolution of its power sector debt. The Rs1.2tr refinancing deal, offered at a Kibor rate minus 0.9pc, is expected to reduce sector costs by 1.5-5pc, providing significant relief to energy stocks.

The market also responded positively to the anticipation surrounding Prime Minister Shehbaz Sharif’s upcoming meeting with US President Donald Trump, which is seen as a step toward strengthening bilateral relations between the two countries.

With continued momentum, analysts expect the KSE-100 index to surpass the 160,000 mark in the final trading session of the week.

Published in Dawn, September 26th, 2025