Bulls prevail at PSX on investors optimism driven by positive triggers

KARACHI: The Pakistan Stock Exchange (PSX) Thursday closed on a positive note gaining 1,009.70 points of (0.89%) closing at 115,094.23 level on investors optimism.

Investors’ optimism fuelled a strong bullish session surge in Thursday trading session, with the index hitting an impressive intraday high of 1,162 points before closing at 115,094 marking a notable gain of 1,009 points.

“There are multiple factors behind today’s bullish trend, first is yesterday’s Moody’s report in which Pakistan banks have been rated from stable to positive, secondly the news of circular debt resolution that some plan has been shared with IMF for its resolution, and thirdly the smooth conclusion of IMF review,” Sana Tawfiq, Head of Research at Arif Habib Limited told Hum News English.

The rally was predominantly led by FFC, PSO, LUCK, ENGROH, and MARI, which collectively contributed 506 points to the benchmark index.

“The positive momentum was largely driven by growing investor confidence that the ongoing review with the International Monetary Fund (IMF) will conclude smoothly.

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This statement acted as a key catalyst, encouraging aggressive buying across major sectors,” Topline Securities stated.

The benchmark index closed on a positive note as investors seized value buying opportunities amid declining international oil and coal prices, which are expected to ease the import bill and strengthen macroeconomic indicators, Ismail Iqbal Securities stated.

Additionally, companies poised to benefit from the anticipated circular debt resolution stayed in focus as the market awaited finalization of the plan, it added.

Market participation remained strong, with a total of 382 million shares changing hands, generating a turnover of Rs 25.4 billion. BOP dominated the volume charts, leading with 48 million shares traded.

The last three sessions of the week had closed in the red largely due to lack of trigger and due to a militant attack in Balochistan, dampening the investors’ confidence.