The Pakistan Stock Exchange (PSX) showed signs of recovery on Tuesday, as the KSE-100 index gained 193 points. Investors reacted positively to reports that the International Monetary Fund (IMF) might conditionally approve Pakistan’s Rs1.5 trillion circular debt management plan.
Additional factors supporting the market rebound included China’s debt rollover, rising global crude oil prices, and speculation ahead of the March quarter’s end.
Market Performance and Key Highlights
The KSE-100 index fluctuated between an intra-day high of 464 points and a low of 561 points, before settling at 116,633.17 with a 193.55-point increase (0.17%).
Top contributors to the market’s positive performance included:
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Oil and Gas Development Company (OGDC) (+2.76%)
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Hub Power (+2.01%)
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Pakistan State Oil (PSO) (+2.94%)
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Meezan Bank
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Sui Northern Gas Pipelines
These stocks collectively added 394 points to the index.
Analysts’ Insights on Market Sentiment
According to Ahsan Mehanti of Arif Habib Corp, stocks recovered as investors focused on resolving the power sector’s circular debt crisis. Reports that the IMF is ready to approve the Rs1.5 trillion debt plan further supported investor confidence.
JS Global analyst Muhammad Hasan Ather stated that the market remained range-bound with limited trading volumes, as many investors adopted a cautious approach ahead of a long weekend. The uncertainty surrounding the IMF’s review and circular debt clearance influenced this behavior.
Market Volatility and Key Stock Movements
The session remained highly volatile, with the KSE-100 index moving within a 1,025-point range.
Stock Performance Summary
Top Gainers:
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OGDC (+2.76%)
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Hub Power (+2.01%)
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PSO (+2.94%)
Top Losers:
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Systems Limited (-1.71%)
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TRG Pakistan (-5.78%)
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UBL (-0.77%)
Pak Elektron led in volume with 23.5 million shares traded, closing at Rs45.90 (+0.03). TRG Pakistan saw significant trading activity but declined by Rs4.06 to close at Rs66.14.
Trading Volume and Foreign Investment
Market Trading Volume:
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Total shares traded: 268.1 million (compared to Monday’s 312 million)
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Total traded value: Rs19.5 billion
Foreign Investors Activity:
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Foreign investors purchased shares worth Rs250.6 million, as reported by the National Clearing Company of Pakistan Limited (NCCPL).
Future Outlook and Investment Recommendations
Arif Habib Limited (AHL) expects the 115,000-116,000 range to serve as a strong support level, with potential movement toward 120,000 in the coming sessions.
Investment Strategy:
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Buying opportunities may arise in oil and gas, technology, and the automotive sector.
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Investors should closely monitor IMF-related developments and government decisions on circular debt resolution.
Conclusion
The Pakistan Stock Exchange rebounded following the previous session’s decline, closing with a 193-point gain. Market sentiment was driven by speculation surrounding the IMF’s expected approval of Pakistan’s circular debt plan. However, volatility remains high, and investors are likely to remain cautious until further clarity emerges on IMF negotiations and key economic policy decisions.
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