KEY POINTS
- Benchmark index gains 210 points amid volatile trading session
- Market sentiment buoyed by IMF staff-level agreement and UBL earnings surprise
- Profit-taking trims intraday gains after early surge to 167,500 level
- Traded volumes surpass 1.52 billion shares as investors eye reform clarity
ISLAMABAD: The Pakistan Stock Exchange (PSX) closed marginally higher on Wednesday as investors balanced optimism over the IMF staff-level agreement with cautious profit-taking following the previous day’s rally.
According to the PSX data portal, the benchmark KSE-100 Index settled at 165,686.38 points, gaining 210.36 points or 0.13 per cent after touching an intraday high of 167,561.69 and a low of 165,357.20. The All-Share Index rose 459.02 points (+0.46 percent) to close at 100,785.80.
Overall market turnover surged to 1.53 billion shares worth Rs 68.6 billion, while 500,749 trades were executed across 489 scrips, of which 249 advanced, 204 declined, and 36 remained unchanged, official data showed.
Top traded names drove the rally
Trading activity remained centered in Banking, Fertiliser, and Cement sectors. According to Business Recorder, Fauji Fertiliser Company, Meezan Bank, and Mari Petroleum led the gainers’ board with notable gains between 1 to 2 per cent. Bank Alfalah and Pakistan Services Limited also attracted buying interest.
However, technology and cement counters saw pressure as Systems Limited fell 2.59 percent, Lucky Cement dropped 1.84 percent, and Engro Fertiliser declined 2.69 percent, according to PSX data portal.
Drivers and underlying sentiment
Investor sentiment was lifted by reports confirming a staff-level agreement between Pakistan and the International Monetary Fund (IMF), paving the way for the release of US $1.2 billion under the Extended Fund Facility and Resilience and Sustainability Facility.
Reuters quoted Finance Minister Muhammad Aurangzeb in Washington as saying that the deal marked “a critical step toward sustainable growth and continued reform implementation.”
Market participants also responded positively to corporate earnings. The United Bank Limited (UBL) posted strong nine-month CY25 earnings per share (EPS) of Rs 40.19, up 101 percent year-on-year, along with a cash dividend of Rs 21.50 per share.
In contrast, Engro Fertiliser disappointed investors with EPS of Rs 10.69, down 21 percent, and a dividend of Rs 11 per share.
Analysts at Topline Securities, quoted by Business Recorder, said that “the IMF breakthrough and positive banking results supported selective buying,” but “profit-taking remained evident as the index approached the 167,500 resistance level.”
Regional and global linkages
Internationally, Asian markets traded mixed as investors weighed U.S. inflation data and the outlook for Federal Reserve policy. Gold surged to fresh records around $4,200 per ounce, reflecting growing Fed-cut bets and safe-haven demand.
Brent crude traded near $62–63 per barrel, pressured by softer demand expectations and rising OPEC+ supply. Analysts said foreign portfolio inflows into frontier markets, including Pakistan, may improve if IMF disbursements are confirmed later this month.
Outlook
Market participants expect consolidation in the near term as the PSX digests corporate results and awaits clarity on reform implementation and external inflows. Analysts see key technical support around 165,000 points and resistance near 167,800 points.
Traders told Dawn that the market “remains in a zone of cautious optimism” and that volumes indicate “liquidity remains strong but rotational.” The short-term trend will likely hinge on “macro data, the rupee’s direction, and follow-through on fiscal reforms.”
