Pakistani Investors celebrated on Monday as the benchmark KSE 100 index soared to an all-time high above 81,000, following the announcement of a Staff-Level Agreement (SLA) with the International Monetary Fund (IMF) for a $7 billion credit line. This came despite the rising political noise after the landmark apex court ruling on reserve seats.
Market optimism was further fueled by an anticipated softening of monetary policy, which drew significant buying interest, particularly from foreign investors.
Ahsan Mehanti of Arif Habib Corporation noted that stocks closed at a record high, attributing the surge to the SLA’s boost to investor confidence. He also mentioned that the expected ease in the State Bank of Pakistan’s policy rate, resolution of the energy sector’s circular debt crisis, increased remittances, and rupee stability were key factors in the market’s performance.
Topline Securities Ltd highlighted that the new Extended Fund Facility for 37 months significantly bolstered investor sentiment.
Major contributions to the index’s rise came from Systems Ltd, MCB Bank, Fauji Fertiliser, Pakistan Oilfield, Hub Power, and Engro Corporation, which collectively added 599 points.
The benchmark index achieved an intraday record high of 81,428.43 points and a low of 80,743.46. It ultimately settled at 79,992.35, after a remarkable rally of 1,211.51 points or 1.52% on a day-on-day basis.
The overall trading volume remained stable at 441.33 million shares, marking a slight increase of 0.91%. However, the traded value improved by 15.93% to Rs27.22 billion day-on-day.
Significant contributors to the trading volume included PIA Holding Company (35.75 million shares), Pak Elektron (25.83 million shares), WorldCall Telecom (24.92 million shares), Air Link Communication (21.33 million shares), and Avanceon Ltd (19.88 million shares).
The shares with the most significant price increases in absolute terms were Nestle Pakistan (Rs105.00), Exide Pakistan (Rs93.45), PIA Holding Ltd (B) (Rs82.98), Sapphire Fibres (Rs72.69), and Reliance Cotton (Rs49.13).
Conversely, the companies with notable price decreases in absolute terms were Rafhan Maize (Rs99.27), Pakistan Tobacco (Rs50.45), Data Agro Ltd (Rs38.57), Ismail Industries (Rs32.60), and Mehmood Textile (Rs28.92).
Foreign investors were active in value-hunting, purchasing shares worth $2.76 million.
