KARACHI:
The benchmark KSE-100 index extended its bullish streak in the outgoing week, climbing 2,462 points (+2.1% week-on-week – WoW) to close at 117,316, buoyed by improving macroeconomic indicators and sector-specific momentum.
On a day-on-day basis, following record-breaking remittances of $4.1 billion for March 2025, a robust rally marked trading at the Pakistan Stock Exchange (PSX) on Monday.
The KSE-100 index went up 1,537 points and settled at 116,390. On Tuesday, the bourse extended gains on Fitch rating upgrade and the index recorded an increase of 385 points. Next day, the PSX ended a two-day rally due to profit-taking. At the end of trading, the KSE-100 posted a decline of 755 points.
The cement sector and Asian markets helped the PSX stage a rebound on Thursday. At close, the index registered a robust gain of 881 points and settled at 116,901.
The PSX ended the week on a bullish note, driven by encouraging macros. The index rose 414 points and closed at 117,316.
Arif Habib Limited (AHL) wrote in its weekly report that the KSE-100 index remained in the green for almost throughout the week, crossing the 117,000 level, driven by improved macroeconomic indicators and positive sector-specific developments.
A major boost came post-announcement of the current account for March 2025, which posted a record surplus of $1.2 billion (the highest-ever monthly surplus). Furthermore, it said, progress on resolving the power sector’s circular debt further lifted market sentiment, given leading banks finalised a Rs1.275 trillion rescue package to stabilise the sector and bolster hopes for structural reforms.
On the economic front, large-scale manufacturing (LSM) dropped 3.5% year-on-year (YoY) in February 2025, reflecting the ongoing challenges in the industrial sector. Meanwhile, foreign direct investment recorded a net inflow of $26 million in March 2025. However, the State Bank’s reserves declined $127 million to $10.6 billion.
Albeit, the market closed at 117,316, depicting a surge of 2,462 points, or 2.1% WoW. Sector-wise, positive contribution came from banks (1,736 points), cement (566 points), automobile (184 points), power (152 points) and technology (53 points). Meanwhile, the sectors that contributed negatively were fertiliser (288 points), exploration & production (172 points), engineering (13 points) and cable & electrical goods (8 points).
Scrip-wise positive contributors were UBL (1,537 points), Lucky Cement (429 points), Hubco (160 points), NBP (149 points) and Sazgar Engineering Works (121 points). On the other hand, negative contribution came from Fauji Fertiliser Company (316 points), Mari Petroleum (231 points), HBL (65 points), Fatima Fertiliser (22 points) and Engro Polymer and Chemicals (21 points), AHL said.
Foreigners’ selling was witnessed during the week, which clocked in at $4.01 million compared to net buying of $9.92 million last week. Average volumes arrived at 456 million shares (down 18% WoW) while average value settled at $116 million (down 5% WoW).
Among other major news, Rs300 billion in ‘oil savings’ will be allocated to Balochistan, Nepra will consider Rs0.0309/kWh fuel cost reduction for March 2025, BYD will launch Shark 6 PHEV in Pakistan in mid-2025, Fast Cables expanded production capacity with a new copper upcasting plant and government raised Rs965 billion through a T-bills’ auction, AHL added. Abdul Basit of JS Global said the KSE-100 index continued its positive momentum during the week, gaining 2,462 points to close at 117,315.
The week witnessed many positive developments on the economic front. Most notably, the current account posted a surplus of $1.2 billion in March, supported by record high remittances of $4.1 billion (+37% YoY). Cumulatively, the current account recorded a surplus of $1.9 billion in 9MFY25, compared to a deficit of $1.65 billion in the same period of last year, he said.
In light of the improved external position, the SBP revised its FY25 year-end reserves target to $14 billion (from $13 billion), as per the SBP governor. Additionally, Pakistan is expected to receive $4-5 billion by end-June 2025, including inflows from international financial institutions. Kuwait also extended its oil credit facility to Pakistan for another two years, the JS analyst added.
