Strong local buying pushes PSX to historic highs amid policy optimism

KARACHI: The Pakistan Stock Exchange (PSX) benchmark index climbed 795 points or (0.67 per cent) closing at an all-time high of 118,769 points as positive sentiment prevailed in the market, analysts said.

The market reached record-high levels with the highest trading value recorded in the first two months of the year.

The strong upward movement was largely driven by aggressive buying from local mutual funds, as investors’ confidence remained high on expectations of an imminent IMF review, which might be completed earlier than expected, Topline Securities stated.

MARI stole the spotlight today, recording a staggering Rs7.17 billion in traded value, as investors speculated on a potential announcement in its emergent board meeting scheduled for tomorrow.

“Stocks reached all-time high led by blue chip scrips as investors weigh IMF conditional readiness to approve Rs1.5 trillion government circular debt management plan and projections for thin inflation on March 25,” Ahsan Mehanti, an analyst at Arif Habib Corp told HUM News English.

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Government deliberations on the privatisation of SOE’s and HUBC, which collectively contributed 850 points to the index. Conversely, ENGRO, UBL, and BAHL exerted downward pressure, trimming 142 points from the gains, Mehanti added.

The resolving issue of circular debt of the power sector and optimism related to potential Staff Level Agreement (SLA) agreement with IMF continued to ignite the positive momentum to new highs, stated Al Habib Capital.

Also in recent developments, the World Bank approved USD 102 million to support the microfinance industry of Pakistan, it added.

Market activity remained robust, with 666 million shares traded, amounting to a turnover of Rs38.5 billion. CNERGY led the volume charts, with 163.9 million shares changing hands.

The last session also experienced a bullish sentiment as the benchmark index hit a record high rising 973 points or (0.84%) and closing at 117,974 level.