PSX surges 1,226 points to historic peak amid strong earnings, offtake

KARACHI: Bulls dominated the Pakistan Stock Exchange (PSX) on Wednesday as the benchmark index surged to an intraday high of 1,829 points before settling at a record close of 152,202, up 1,226 points (+0.81 per cent).

Investor sentiment remained upbeat, largely driven by robust sectoral performance. The cement sector led the rally, buoyed by a more than 12 per cent year-on-year (YoY) increase in industry dispatches for August 2025, which revived optimism across the board.

According to Topline Securities, the fertilizer sector also drew heavy participation as urea sales rose to 816,000 tons in August — up 46 per cent YoY and 34 per cent month-on-month (MoM). The surge was supported by aggressive discounting by select manufacturers and potential dealer pre-buying ahead of an anticipated partial rollback in September.

“Stocks closed at a new all-time high after the SBP chief projected GDP growth of 3.25–4.25 per cent for FY26, alongside speculation over trade ties under CPEC 2.0 and the Pakistan-China FTA,” said Ahsan Mehanti, CEO of Arif Habib Commodities.

He added that a 22 per cent YoY increase in cement dispatches, a 7 per cent rise in oil sales in August, and government deliberations to resolve the power sector’s circular debt problem also played a catalytic role in the record bullish close.

From the power sector, Hub Power Company (HUBC) announced its 4QFY25 results, posting earnings of Rs9.16 per share and declaring a Rs10/share dividend — higher than market expectations — taking its FY25 payout to the highest in recent years.

“The rally was largely fueled by higher-than-expected dividends from HUBC, strong fertilizer offtake in August, and positive developments regarding Chinese IPPs, which are expected to accelerate the finalization of the power sector’s debt resolution with banks,” Ismail Iqbal Securities said.

Al Habib Capital noted improvements on the industrial front as well, highlighting a 9 per cent YoY increase in cotton arrivals as of August 25, coupled with notable gains in cement dispatches and fertilizer demand. It added that progress on resolving Chinese IPPs’ issues also bolstered confidence in the market.

At the close, the KSE-100 index gained 1,226 points to finish at 152,202, with power generation and distribution, fertilizer, and oil and gas exploration companies contributing a combined 829 points. Major support came from HUBC, FFC, OGDC, MARI and PPL, which together added 788 points.

Market activity strengthened notably, with volumes rising to 1.04 billion shares and traded value reaching Rs51.2 billion. PACE dominated the volume chart with 89.2 million shares traded.

Meanwhile, gold prices soared to new record levels on Wednesday, continuing their upward streak in both domestic and international markets as investor demand for the safe-haven asset grew stronger.

According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of gold per tola in the local market jumped by Rs6,000 to reach Rs376,700, marking another historic high. Similarly, the price of 10-gram gold also climbed, rising by Rs5,144 to stand at Rs322,959.