The Pakistan Stock Exchange (PSX) continued its buying rally on Friday, with the KSE-100 Index gaining 442 points as investor sentiment remained strong. The positive momentum was driven by expectations that Pakistan will successfully complete the first review of the $7 billion IMF Extended Fund Facility (EFF) bailout program.
KSE-100 Performance Overview
-
Opening & Intra-Day Movement:
- The KSE-100 Index started the session in positive territory, reaching an intra-day high of 115,730.98.
- Profit-taking led to a decline, with the index hitting an intra-day low of 115,162.69 before recovering.
- At close, the index settled at 115,536.17, up 441.93 points (+0.38%).
-
Week-on-Week Performance:
- The KSE-100 Index rose 1% WoW, reflecting sustained buying interest.
-
Key Market Movers:
- Top contributors to the index’s gains were MARI, FFC, EFERT, SYS, AIRLINK, and PAEL, which collectively added +426 points.
-
Key Drivers Behind Market Rally:
- Investor confidence was boosted by:
- The expected approval of Pakistan’s IMF bailout review.
- China’s debt rollover of $1 billion.
- Positive news flow regarding IMF talks.
- Investor confidence was boosted by:
FBR Revenue Collection Falls Short of Target
While the stock market saw gains, the Federal Board of Revenue (FBR) reported a massive revenue shortfall of Rs601 billion for the first eight months of FY 2024-25.
- Total revenue collection (July-February 2024-25): Rs7,346 billion (vs. target of Rs7,947 billion).
- February 2025 collection: Rs850 billion (vs. target of Rs983 billion, shortfall of Rs133 billion).
The shortfall raises concerns over Pakistan’s fiscal stability, despite ongoing talks with the IMF.
Global Market Trends & Economic Indicators
1. International Stock Markets
- Asian markets rebounded on Friday following a global selloff.
- US stock futures rose, with the Nasdaq gaining 0.87% and S&P 500 up 0.7% on hopes of a US government shutdown aversion.
- Gold prices hit record highs amid escalating trade tensions.
2. US-EU Trade Disputes
- US President Donald Trump announced a 200% tariff on European wine and spirits if the EU does not remove retaliatory tariffs on American whiskey and other goods.
3. Pakistani Rupee Depreciation
- The PKR depreciated 0.06% against the US dollar, closing at 280.21 (-Re0.16) in the inter-bank market.
Trading Volume & Market Leaders
-
All-share index volume fell to 360.46 million (vs. 382.79 million in the previous session).
-
Total traded share value dropped to Rs21.04 billion (vs. Rs25.41 billion previously).
-
Top volume leaders:
- Pak Int. Bulk (42.70 million shares)
- B.O. Punjab (36.14 million shares)
- Fauji Cement (25.62 million shares)
-
Overall market breadth:
- Gainers: 195
- Losers: 169
- Unchanged: 71
Conclusion
The Pakistan Stock Exchange continued its bullish momentum, driven by optimism over the IMF bailout review and China’s debt rollover. However, the FBR’s revenue shortfall and rupee depreciation remain key concerns for investors.
With global trade tensions and economic uncertainties looming, investors should stay updated on key developments in local and international markets.
Stay tuned for more market insights and updates!
