KARACHI: The Pakistan Stock Exchange (PSX) soared to a new all-time high on Thursday. Investors reacted positively to reports of the International Monetary Fund’s (IMF) readiness to approve the government’s circular debt management plan.
The bullish momentum gained strength as discussions on privatizing state-owned enterprises (SOEs) continued. Hopes of a cut in industrial power tariffs further fueled buying interest.
The benchmark KSE-100 Index touched an intraday high of 119,421.81 points, gaining 1,447.79 points or 1.23%. The lowest level recorded during the session stood at 118,525.00, still up 550.98 points or 0.47% from the previous close of 117,974.02.
“Market made a new high, causing technical players to initiate fresh long positions. This, along with IMF news and circular debt resolution discussions, is boosting investor confidence,” said Ahfaz Mustafa, CEO of Ismail Iqbal Securities.
Investor sentiment remained strong following reports that the IMF had approved Pakistan’s request to borrow Rs1.25 trillion ($4.5 billion) from domestic banks. The government aims to use these funds to reduce circular debt without adding to the official public debt.
The development triggered fresh institutional and retail buying. Investors targeted blue-chip stocks, pushing the market to record levels.
The bullish rally also found support from the government’s Treasury Bill (T-bill) auction on Wednesday. The government raised Rs392 billion, though it fell short of the Rs800 billion target and remained lower than the Rs513 billion maturity amount.
According to the State Bank of Pakistan (SBP), cut-off yields on Treasury bills largely remained stable. However, the 12-month paper saw a slight increase of 26 basis points (bps) to 11.8999%. The yield on the one-month Treasury bill stood at 12.0498%, while the three-month paper remained unchanged at 11.8242%. The six-month T-bill closed steady at 11.6699%.
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The stock market has now posted gains for five consecutive sessions. Energy and banking stocks led the rally.
Analysts believe that investor confidence will remain high if economic policies stay on track. “The market could see further gains if the government successfully implements its circular debt plan and attracts foreign investment,” said a senior market analyst.
Despite the strong rally, some investors remain cautious. Concerns over inflation, interest rates, and external financing needs could impact sentiment in the coming weeks.
For now, the PSX continues its upward trajectory, reflecting optimism in Pakistan’s economic outlook.
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