PSX Breaks 167,000 Level on $3B Deposit Expansion in Saudi Arabia

The Pakistan Stock Exchange remained in a consolidation mode as the benchmark KSE-100 closed just above the 167,000 level, boosted by improved external support and easing political uncertainty.

At the end of the trading day, the KSE-100 closed at 167,086 points, up 802 points or 0.48%.

“Throughout the day, the benchmark remained largely in positive territory, supported by key developments,” said Ali Najib, Deputy Head of Trading at Arif Habib Ltd. Saudi Arabia has extended its $3 billion deposit in Pakistan for another year, providing much-needed comfort to the foreign sector.

Additionally, the president’s assent to the summary for the appointment of the Chief of Defense Staff helped reduce uncertainty on this front.

On the corporate front, Service Industries announced that its subsidiary, Service Long March Tires (SLM), has decided to raise capital through an initial public offering and go ahead with listing on the PSX.

Among majors, FFC, PPL, OGDC, UBL and SYS collectively contributed 551 points to the index, while MCB, PIOC, FABL, NBP and BOP together shed 138 points.

Market activity remained moderate, with 685.9 million shares traded and a total turnover of Rs 41.6 billion. TELE topped the volume chart with 58 million shares.

PSX earns 408 points in one week

The PSX ended the week on a weak note, gaining 408 points or 0.26%. The KSE-100 index opened at 167,229, touched a weekly high of 169,289 and recorded a low of 165,886 during the week. The benchmark eventually settled at 167,086, reflecting a period of consolidation with limited directional movement.

Going forward, the market is expected to make an attempt at a new all-time high, with the energy sector likely to lead the rally.

The expectation is driven by market sentiment surrounding a potential debt repayment cycle expected next week, which could fuel fresh buying interest in key E&P and power sector stocks.