KARACHI: After posting its second-highest single-session gain of over 7,033 points the previous day, the Pakistan Stock Exchange (PSX) experienced a volatile session on Wednesday.

However, the benchmark KSE-100 index managed to rise by 210.36 points, closing at 165,686.38, supported by value-hunting and optimism surrounding the staff-level agreement (SLA) reached with the International Monetary Fund (IMF).

The session was marked by significant fluctuations, with the KSE-100 reaching an intraday high of 167,561 before dipping to a low of 165,357. This volatility followed profit-taking after the sharp rally in the prior session. Investor sentiment was initially lifted by news of the agreement between Pakistan and the IMF on the second review of the $7 billion Extended Fund Facility (EFF) and the first review of the $1.3bn Resilience and Sustainability Facility (RSF).

Despite initial optimism, media reports of renewed tensions along the Pakistan-Afghanistan border sparked some profit-taking, causing the market to dip briefly. However, value-driven buying in the latter part of the session helped the market recover.

Notable contributors to the index included Fauji Fertiliser, Meezan Bank, Mari Energies, Bank Alfalah, and Pakistan Services Ltd, which collectively added 574 points. However, these gains were partly offset by declines in stocks such as Systems Ltd, Lucky Cement, and Engro Fertiliser, which collectively deducted 388 points from the index.

The staff-level agreement, if approved by the IMF’s Executive Board, will result in Pakistan receiving $1bn under the EFF and $200 million under the RSF, bringing total disbursements under the two programmes to around $3.3bn.

This would represent a significant step towards enhancing macroeconomic stability and boosting investor confidence. Trading volume increased by 29.52pc to 1.526bn shares, while the total traded value rose by 15.88pc to Rs68.6bn.

The KSE-100 index now sits within its 165,000-170,000 consolidation range, with the next resistance level pegged at the all-time high of 169,988.

Published in Dawn, October 16th, 2025