PSX stages robust rally, eyes budget boost
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The Pakistan Stock Exchange (PSX) staged a robust rebound on Wednesday as the KSE-100 index climbed over 950 points, driven by active investors, who were encouraged by pro-growth fiscal measures and realigned their portfolios ahead of budget presentation.
Despite pressure on auto stocks due to reports of the International Monetary Fund (IMF)-backed tariff relaxation and a revised National Tariff Policy, the overall sentiment remained positive. The government's assurances of tax relief to refineries and signs of continued reforms further lifted confidence.
Arif Habib Corp MD Ahsan Mehanti wrote in his daily note "stocks closed near the all-time high amid speculation in the pre-budget session."
However, auto stocks were battered on reports of proposed IMF-driven tariff relaxation on the import of used vehicles and a new tariff policy favouring imports. The government's assurance of tax relief for refineries, rising global crude prices and fiscal reforms boosted confidence, fuelling a bull-run at the PSX, he added.
At the end of trading, the benchmark KSE-100 index recorded a notable increase of 960.33 points, or 0.81%, and settled at 119,931.46.
Topline Securities commented that the day kicked off with a rally as the KSE-100 index soared past the 120,000 milestone, marking an intra-day high of 1,135 points. However, it failed to maintain the momentum and closed at 119,931, still locking in impressive gains.
Investor sentiment remained upbeat, particularly in large-cap stocks, which drew considerable interest. Bank, oil and energy stocks collectively contributed around 480 points to the index's rise, it said.
The refinery sector saw increased activity following the government's approval to clear dues of Rs34 billion through petroleum prices, which would pave the way for refineries to initiate $6 billion plant upgrade projects. The development pushed up share prices of National Refinery, Pakistan Refinery and Attock Refinery, Topline added.
Arif Habib Limited (AHL) said that stocks made another attempt at the 120k level, with improving internals suggesting a likely breach in the sessions ahead.
Some 74 shares rose while 24 fell with the National Bank of Pakistan (+10%), Bank AL Habib (+2.85%) and United Bank (+1.22%) being the key contributors to index gains. On the other hand, Lucky Cement (-0.53%), Habib Metropolitan Bank (-1.66%) and Standard Chartered (-4.21%) were the biggest drags, it said.
In a significant development, the Oil and Gas Regulatory Authority (Ogra) set prescribed prices for FY26 at Rs1,895/mmBtu for Sui Northern Gas Pipelines and Rs1,659/mmBtu for Sui Southern Gas Company, reflecting a 6.57% increase and a 5.90% decrease, respectively. However, the two utilities had requested significantly higher rates of Rs2,486/mmBtu and Rs4,161/mmBtu, AHL mentioned.
KTrade Securities stated in its market wrap that the bourse rebounded strongly after a sluggish start to the week, supported by improved volumes and trading activity. The rally was led by strength in banking, oil & gas and power sectors.
While improving macroeconomic indicators support a positive market outlook, investor participation is likely to remain selective ahead of the FY26 budget announcement on June 2, the report predicted.
Overall trading volumes increased to 667.7 million shares compared with Tuesday's tally of 437.9 million. The value of shares traded during the day was Rs26.6 billion. Shares of 463 companies were traded. Of these, 287 stocks closed higher, 125 fell and 51 remained unchanged.
K-Electric was the volume leader with trading in 103.7 million shares, rising Rs0.36 to close at Rs4.75. It was followed by Kohinoor Spinning Mills with 40.3 million shares, adding Rs0.36 to close at Rs5.75 and WorldCall Telecom with 36.3 million shares, gaining Rs0.03 to close at Rs1.27. During the day, foreign investors sold shares worth Rs146.9 million, the National Clearing Company reported.
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