KARACHI: The Pakistan Stock Exchange (PSX) continued its positive momentum on Wednesday, as investors remained upbeat ahead of a significant agreement between the government and commercial banks aimed at tackling the country’s power sector circular debt.
Despite concerns about an upcoming IMF review for the release of the third tranche of $1bn starting Sept 25, the benchmark KSE 100 index surged past the 158,000-point mark.
According to Topline Securities, the market opened strong, with the KSE 100 index rising by as much as 1,101 points during the session. The rally was largely driven by news that the government was set to sign a landmark Rs1.275 trillion financing agreement with 18 commercial banks, aimed at addressing the nation’s power sector circular debt. However, profit-taking later in the session led to a slowdown, and the index ultimately closed at 158,236 points, up 291 points, or 0.18 per cent.
K-Electric stood out during the session, recording its highest-ever trading volume in a single day. The company’s strong financial results and the growing belief that earnings could improve further drew investor attention. Other major contributors to the rally included Pakistan Petroleum, Hub Power, United Bank, and K-Electric, which collectively added 538 points to the index. On the flip side, Fauji Fertiliser, Systems Ltd, Engro Fertiliser, and Meezan Bank weighed on the market, subtracting 256 points.
Market activity saw a notable uptick compared to the previous session. Trading volume reached 1.78bn shares, a 17.05pc increase, while the total traded value was Rs54.4bn, down 7.15pc from the previous day.
Ali Najib, Deputy Head of Trading at Arif Habib Ltd, noted that the market spent most of the day consolidating within the 158,000-159,000 point range. After a slow start and a brief dip into negative territory due to profit-taking, value hunters stepped in to push the market into positive territory by the close.
On the macroeconomic front, AHL Research projected September inflation to rise to 5.9pc year-on-year, up from 3.0pc in August, primarily driven by food price increases following recent floods. While inflationary pressures persist, the economic outlook remains stable. Looking ahead, analysts expect the PSX to continue consolidating within the 155,000-160,000 point range, with energy stocks likely to remain in focus as the circular debt resolution agreement takes shape.
Published in Dawn, September 25th, 2025
