The Pakistan Stock Exchange (PSX) continued its upward momentum on Wednesday, driven by strong institutional buying and renewed investor confidence in the oil sector. The rally came as key economic developments fueled optimism across the financial market.
The PSX’s benchmark KSE-100 Index climbed to an intraday high of 144,209.03 points, gaining 1,171.87 points or 0.82%. It also recorded a low of 143,409.59 points, still up 372.43 points or 0.26% from the previous close of 143,037.16.
Analysts credit the market’s rise to several positive signals, including the partial release of funds under the Telegraphic Transfer Charges Incentives Scheme (TTCIS). The government has approved Rs30 billion out of Rs58 billion in outstanding claims to support remittance inflows. This clearance is expected to boost liquidity further in the coming weeks.
The oil and gas sector played a major role in this rally. Investors responded positively after Oil and Gas Development Company Ltd (OGDCL) confirmed it received a Rs7.7 billion interest payment from Power Holding Private Ltd (PHPL). This payment is part of a larger Rs132.7 billion circular debt resolution.
According to market experts, the technical breakout above the 140,000 level acted as a trigger for increased buying, especially in energy stocks. Payments to OGDCL and improved investor sentiment have created a favorable outlook for the sector.
Meanwhile, the government is planning to borrow Rs6.175 trillion through Treasury bills and Pakistan Investment Bonds between August and October. This pre-funding strategy is in line with IMF commitments and aims to meet budgetary needs without central bank borrowing.
The State Bank of Pakistan recently kept the policy rate unchanged at 11%, noting persistent inflation concerns. The rate has dropped significantly since June 2024, falling from a peak of 22%.
As a result of all these factors, the PSX extends rally on institutional buying, oil sector gains, with broad participation across multiple sectors.
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