The PSX jumps 2,474 points on political stability

The Pakistan Stock Exchange (PSX) extended gains on Thursday as the KSE-100 gained 2,474 points, or 1.56%, as the passage of the 27th Constitutional Amendment and the expected release of the International Monetary Fund (IMF) loan tranche sparked investor interest.

Trading remained firm for most of the session, with the index hitting an intraday high of 160,945 and a low of 158,971. The upbeat sentiment reflected renewed investor confidence driven by political stability, improved security conditions and a calmer regional outlook. The cement, fertilizers and oil and gas sectors led the rally.

KTrade Securities stock trader Ahmed Sheraz commented that the PSX saw a strong reversal of fortunes as the KSE-100 jumped 2,474 points to close at 160,657.5. The rally was broad-based with major sectors such as cement, fertilizers and oil and gas posting significant gains.

He said market sentiment improved due to multiple positive developments. The passage of the 27th Constitutional Amendment was seen as a step towards political stability. Confidence was further boosted when the Sri Lankan cricket team decided to go ahead with their tour of Pakistan after security assurances.

Additionally, a successful operation in Khyber-Pakhtunkhwa and the Indian cabinet’s statement on the Delhi blast, which was not reported in Pakistan, supported the market momentum.

Blue-chip stocks were strong performers which included Fauji Fertiliser, Lucky Cement, Maple Leaf Cement, DG Khan Cement, Mari Energies, Fauji Cement, Cherat Cement, Hub Power and Pioneer Cement. Among them, Maple Leaf and Pioneer Cement hit their upper circuits (+10%) after Maple Leaf announced it would acquire a controlling stake in Pioneer Cement, Sheraz added.

Topline Securities said bulls rallied with confidence as the KSE-100 index surged to an intraday high of 2,760 points before settling at 160,657, up 2,474 points. The rally was fueled by investor optimism following mergers and acquisitions in the cement sector.

Among corporate news, he said, Maple Leaf Cement announced plans to acquire Pioneer Cement, according to a filing with the stock exchange. Currently, Maple Leaf Cement and Maple Leaf Capital jointly own an 18.6% stake in Pioneer Cement. Potential consolidation in the industry boosted investor sentiment, driving the market firmly into bullish territory, it said.

Index-heavy stocks including Fauji Fertiliser, Lucky Cement, Maple Leaf Cement, DG Khan Cement and Mari Energies were among the major gainers, contributing 1,309 points, Topline added.

JS Global analyst Muhammad Hasan Ather wrote that the strength in the market was largely driven by renewed investor optimism, leading to possible approval of the IMF’s loan tranche disbursement, alongside heavy buying in banking, cement, oil & gas and other key sectors.

Ather believes the market looks poised to test upside resistance near the 160,500-161,000 zone. However, with macroeconomic headwinds and geopolitical risks, he advised investors to adopt a selective, sector-focused stance.

Total trading volume jumped to 797.2 million shares from Wednesday’s 757.2 million. The value of traded shares stood at Rs 35.1 billion.

Shares of 477 companies were traded. Of these, 285 closed higher, 142 declined and 50 remained unchanged.

Bank Makramah was the volume leader with 112.2 million shares, up Rs0.20 to close at Rs5.59. It was followed by Dost Steels with 48.7 million shares, gaining Rs 0.31 to close at Rs 8.17 and First National Equities with 40.4 million shares, losing Rs 1.03 to close at Rs19.63. Foreign investors were net sellers of shares worth Rs 656 million, according to NCCPL.