KARACHI, May 16 — A fresh wave of investor confidence swept across the Pakistan Stock Exchange (PSX) on Thursday morning, with the benchmark KSE-100 Index climbing nearly 1,200 points in early trading.
By 11:35 am, the index was hovering at 119,737.61, up 1201.09 points or 1%, as bullish momentum prevailed across key sectors. Automobile assemblers, commercial banks, fertilisers, oil and gas exploration companies, oil marketing companies (OMCs), power generation firms, and refineries all saw sustained buying.
Later in the day, the earlier gains were erased significantly, bringing the index to 119,102 points at 2:20 pm. However, one final buying spree took the PSX to its highest ever value at 119,961.91 points at the closing bell.
The index closed 1425.39 points or 1.2% higher than the previous close, closing at its highest ever value. Previously the KSE-100 index has crossed this mark however it always used to close slightly below.
Index-heavyweights such as National Refinery Limited (NRL), Hub Power Company (HUBCO), Pakistan State Oil (PSO), Sui Northern Gas Pipelines Limited (SNGPL), Mari Petroleum (MARI), Oil and Gas Development Company (OGDC), Pakistan Petroleum Limited (PPL), Habib Bank Limited (HBL), National Bank of Pakistan (NBP), and United Bank Limited (UBL) were all trading in the green, contributing significantly to the morning rally.
Investor sentiment was buoyed by news that the State Bank of Pakistan (SBP) had received the second tranche of $1.02 billion (SDR 760 million) from the International Monetary Fund (IMF) under the Extended Fund Facility. The inflow, which will reflect in the central bank’s reserves for the week ending May 16, has been viewed as a key step in strengthening Pakistan’s external position and maintaining currency stability.
Adding to market optimism, the Power Division is preparing to virtually brief IMF officials on critical energy sector developments scheduled for May 15–16. The agenda includes updates on circular debt, annual tariff rebasing, subsidy allocations, and legislative progress on the proposed carbon levy — all part of the broader structural reform commitments made by the Shehbaz Sharif government under the IMF agreement.
The sharp rally comes a day after the PSX saw a relatively subdued and volatile session on Wednesday, when the KSE-100 Index ended down by 39.36 points or 0.03% to close at 118,536. However, Thursday’s surge indicates a renewed wave of optimism, supported by macroeconomic inflows and progress on reform targets critical to unlocking future disbursements from the IMF and sustaining investor confidence.
