The Pakistan stock market experienced a significant surge on Thursday, driven by a wave of buying across various sectors. This rally was fueled by the visiting International Monetary Fund (IMF) team’s positive assessment of Pakistan’s increased tax-to-GDP ratio, which rose from 8.8% to 10.3%.

The KSE-100 index soared to an intraday high of 94,719, marking a record milestone as it surpassed the 94,000 mark for the first time. It ultimately settled at 94,191.89, representing a day-on-day increase of 0.90%.

According to Topline Securities Ltd, this bullish trend can be linked to growing economic optimism, largely due to the IMF’s lack of concerns regarding Pakistan’s progress in revenue collection. Consequently, fears regarding an impending mini-budget and additional taxation measures have subsided.

In the exploration and production sector, Oil and Gas Development Company (OGDC) reported a cash collection ratio of 121% for the first quarter of FY25, with expectations of continued improvement as the IMF program may necessitate timely gas price adjustments.

Investor interest in the banking sector surged following the Islamabad High Court’s temporary relief for banks against a government tax related to private-sector lending shortfalls. This relief will remain in place until a final decision is made, with hearings set to begin on December 3. Ahsan Mehanti from Arif Habib Corporation noted that stocks closed at an all-time high, led by blue-chip companies with promising earnings forecasts.

Factors contributing to the market’s upward momentum include the stability of the rupee, reduced concerns over the mini-budget, and the government’s commitment to the IMF regarding a $5 billion external funding gap, supported by Saudi oil deferred payments and rollovers from the China Exim Bank.

Notable contributors to the index’s rise included UBL, OGDC, HBL, MVB, and TRG, which collectively added 455 points. Trading volume increased by 34.35% to 1.08 billion shares, with a slight rise in total value to Rs32.68.

Significant trading volumes were observed in shares such as WorldCall Telecom (177.39 million shares), Hascol Petroleum (59.22 million shares), and Treet Battery (47.94 million shares).

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Among the stocks that saw the largest price increases were Rafhan Maize (Rs299.00), PIA Holding Co [B] (Rs68.74), and Unilever Foods (Rs47.09). Conversely, companies like Pak Engineering (Rs67.74) and Philip Morris (Rs37.45) experienced notable losses.

Foreign investors were net sellers, offloading shares worth $2.6 million.