Pakistan’s stock market experienced a dramatic surge on Wednesday, with the KSE-100 index rocketing up by nearly **1,500 points!** This remarkable rally was fueled by a resurgence of investor confidence and significant gains in key sectors. Let’s break down what happened.
The day began with a positive outlook, and the bullish trend persisted for most of the trading session. The index peaked at 163,397 during the day, driven primarily by the fertilizer and banking sectors. Although there were a couple of dips, the market quickly regained its momentum. Ultimately, the KSE-100 closed at 163,189, marking an impressive increase of 1,496 points, or 0.93%.
But here’s where it gets interesting: The State Bank of Pakistan (SBP) reported that it successfully raised Rs749.5 billion in the latest T-bill auction, exceeding its target of Rs650 billion. Yields also saw a decrease of 4-10 basis points across various tenors.
KTrade Securities highlighted in their report that the Pakistan Stock Exchange (PSX) saw a strong rebound, closing firmly in the green. The benchmark KSE-100 index advanced by 1,496 points (+0.93%) day-on-day, signaling renewed buying interest. Fertilizer stocks, especially Fauji Fertiliser, led the charge, with strong performances also coming from Meezan Bank, Habib Bank, NBP, and OGDC. The KSE All-Share Index turnover reached 636 million shares, indicating healthy market activity.
KTrade anticipates a constructive sentiment in the near term, supported by rollover-driven flows and key economic factors. Investors will also be closely monitoring developments related to the next IMF loan tranche. Topline Securities’ review confirmed the strong upward trajectory, noting the index’s fluctuation between the intra-day high of 163,397 and the low of 160,565.
Despite a volatile start, sustained institutional buying provided stability and momentum. Key players like Fauji Fertiliser, Meezan Bank, Habib Bank, NBP, and OGDC significantly contributed to the rally, adding around 1,058 points to the overall advance. JS Global analyst Muhammad Hasan Ather pointed out that the rally was primarily due to stock buying in fertilizer, banking, and oil sectors. He anticipates a period of subdued activity in the absence of new triggers.
Arif Habib Limited (AHL) Deputy Head of Trading, Ali Najib, commented on the recovery, noting the initial selling pressure that pushed the index to an intra-day low of 160,565 (-1,128 points). However, value investors stepped in, helping the market rebound and close in positive territory. Overall trading volumes increased to 636.4 million shares, compared to 590.5 million the previous day, with the value of traded shares reaching Rs30.9 billion.
Shares of 474 companies were traded, with 136 stocks closing higher, 290 declining, and 48 remaining unchanged. WorldCall Telecom led in trading volume with 47.8 million shares, followed by Hum Network and Dost Steels. Foreign investors were net sellers, with shares worth Rs856 million sold, according to NCCPL.
This surge is undoubtedly good news, but what does it mean for the future? Will the fertilizer and banking sectors continue to drive the market? And how will the upcoming IMF loan tranche impact investor sentiment? What are your thoughts on this market performance? Share your insights in the comments below!