Pakistan Stock Exchange closes flat after hitting record high of 80,000 points

KARACH: The Pakistan Stock Exchange (PSX) saw a volatile session by Friday evening, closing almost flat after hitting a record intraday high, as hopes for a larger, long-term bailout deal with the International Monetary Fund (IMF) initially drove gains, traders said.

The benchmark KSE-100 shares index touched the 80,000 points mark during the day but ended at 78,810.49 points, up a marginal 8.96 points or 0.01 per cent, after profit-taking in an overbought market erased earlier advances. The index recorded an intraday high of 80,059.87 points and a low of 78,169.02 points.

On Thursday, the banking sector had led the index to a new record high of 78,802 points, gaining nearly 2,100 points on the first trading session after the Eid holidays.

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“The post-budget rally continues, bolstered by Fitch’s recent comments, which strengthen the view that Pakistan will secure a new IMF programme,” Raza Jafri, CEO of EFG Hermes Pakistan, told Geo.tv. “Domestic liquidity is robust, making equities increasingly attractive amid the start of monetary easing,” he added.

Despite early gains, selling pressure emerged in key sectors including automobile assemblers, chemicals, cement, commercial banks, fertilizers, oil and gas exploration companies, and oil marketing companies (OMCs). Heavyweights like SHEL, SNGPL, PSO, OGDC, POL, and MEBL registered significant losses.

Alpha Beta Core CEO and economic analyst Khurram Schehzad noted that expectations from the fiscal year 2025 budget, anticipated to pave the way for an extended IMF programme, have bolstered confidence among local and foreign portfolio investors.

Earlier in the session, Mohammed Sohail, CEO of Topline Securities, highlighted that positive market sentiment was driven by the tax-heavy budget, which investors believe will aid in securing the long-term IMF loan.