Bullish trend continues at PSX on cement sector optimism

• KSE-100 Index closed at 143,037.16 points, up 984.52 points, or 0.69%.
• Index touched intraday high of 143,059.81, gaining 1,228.7 points, or 0.86%.
• Session's low was recorded at 142,235.71, still up 183.07 points, or 0.13%.

KARACHI: The equity market continued its upward trajectory on Tuesday, as investor optimism surrounding the cement sector and recent progress on circular debt reforms supported sentiment.

The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index settled at an all-time high of 143,037.16 points, up 984.52 points, or 0.69%, from the previous close of 142,052.64. 

During the session, the index climbed to an intraday high of 143,059.81, gaining 1,228.7 points, or 0.86%, while touching a low of 142,235.71, reflecting an increase of 183.07 points, or 0.13%.

“Market rising in anticipation of better than expected results from cement companies,” said Topline Securities CEO Mohammad Sohail.

AAH Soomro, an independent investment and economic analyst, added: “Market remains in bullish trend over expected improvements in EnP sector over liquidity ease and cement sector rejoicing higher sales growth. Liquidity is aplenty chasing stocks.”

Meanwhile, the government reported a reduction in power sector circular debt by Rs780 billion, bringing the total down to Rs1.614 trillion. The Power Division attributed the decline to lower line losses, improved bill recovery, and cost savings from renegotiated IPP contracts. 

However, some industrialists cautioned that the relief may be temporary, as the government continues to raise bank loans to clear arrears.

Oil and Gas Development Company Ltd (OGDCL) confirmed receiving a Rs7.7 billion interest payment from Power Holding Private Ltd (PHPL), part of a broader Rs132.7 billion settlement involving term finance certificates issued in 2013. 

The total interest to be paid in monthly instalments stands at Rs92 billion, with the balance now reduced to Rs84.3 billion.

On the fiscal side, fresh data released by the Ministry of Finance shows Pakistan’s consolidated budget deficit for FY25 stood at Rs6.17 trillion, or 5.4% of GDP — an improvement from the previous year’s 6.8%. 

Total revenues increased 36% year-on-year to Rs17.997 trillion, while total expenditure rose 18% to Rs24.166 trillion. The primary surplus improved significantly to Rs2.719 trillion, or 2.4% of GDP, compared to Rs953 billion (0.9% of GDP) in FY24.

Tax revenues rose 26% to Rs12.723 trillion in FY25, while non-tax revenues surged 66% to Rs5.275 trillion. Development expenditure also jumped 43% year-on-year to Rs2.966 trillion.

On Monday, the KSE-100 surged by 1,017.66 points, or 0.72%, to 142,052.65 points from 141,034.99 points recorded in the last session. The highest index of the day remained at 142,323.34 points, while the lowest level was recorded at 141,440.48 points.