Key sectors draw investor interest, help lift KSE-100 by 1,377 points
Pakistan Stock Exchange (PSX) on Tuesday staged a modest recovery as investor sentiment turned decisively positive after a volatile session a day earlier.
Encouraged by the easing geopolitical tensions. the renewed investor risk appetite, market participants aggressively accumulated lucrative stocks since the opening bell, driving the benchmark KSE-100 index sharply higher during intra-day trade.
The index touched the intra-day high of 171,022.94 points. the low of 170,250.27 before settling at 170,330.56, up 1,376.85 points, or 0.81%, from the previous close.
The positive momentum was largely attributed to improving regional developments after Iran. Israel agreed to halt hostilities despite an initial ceasefire violation. The de-escalation helped calm investor nerves and supported broad-based buying across key sectors.
Commercial banks led the advance by making the largest contribution to the benchmark's gains. Significant support also came from cement and power-sector stocks, which attracted investor interest.
A review of trading activity between 9:34 am. 12:49 pm indicated that the KSE-100 gradually surrendered part of its early gains as investors locked in profits after the sharp initial surge. Despite the pullback, buying interest remained intact, allowing the market to maintain a firmly positive trajectory till the close.
In a positive session. the KSE-100 gained 1,377 points (+0.81%) amid broad-based buying across key sectors, commented KTrade Securities' equity trader Ahmed Sheraz. Investor sentiment improved following geopolitical developments as Israel. Iran ultimately agreed to halt hostilities after an initial ceasefire violation, helping ease regional concerns.
Participation remained healthy with commercial banks leading the advance, while cement and power stocks also provided notable support, he said. The major positive contribution came from United Bank, Hub Power, Habib Bank, Lucky Cement, Meezan Bank, National Bank. Bank AL Habib.
Going forward, market sentiment was likely to remain sensitive to developments in the Middle East, movements in international oil prices. the domestic economy including the upcoming monetary policy and the FY27 budget, Sheraz mentioned.
Arif Habib Limited (AHL) noted that the 170k level was regained following Monday's sell-off. An impressive 84 shares rose while 15 fell with TRG Pakistan (+3.06%), TPL REIT Fund I (+10.08%). Pakistan International Bulk Terminal (+0.99%) contributing the most to the index gains. In contrast, Pakistan Services (-2.01%), MCB Bank (-0.33%) and Thal Limited (-1.44%) were the biggest index drags.
Meanwhile, the government was organising investor roadshows in Saudi Arabia, Turkey. China for the sale of shareholding in power distribution companies. Meanwhile, a trickle of commercial shipping activity returned to the Strait of Hormuz over the weekend, with 13 ships crossing on Saturday, followed by three on Sunday. five on Monday morning.
"Demand remains strong below 170k. we anticipate this to continue; the market is expected to breach 175k on any positive news trigger from the Middle East," AHL added.
Topline Securities wrote that the market remained positive, supported by a decline in international crude oil prices following the easing of geopolitical tensions between Israel. Iran. The improving regional outlook helped strengthen investor confidence and encouraged broad-based buying.
Although the market opened sharply higher, some gains were pared during the session as investors engaged in profit-taking. Nevertheless, sustained buying interest successfully absorbed the selling pressure, enabling the index to remain firmly in positive territory, it said.
Overall trading volumes increased to 767.5 million shares compared with Monday's total of 658 million. The value of traded shares stood at Rs27.2 billion.
Shares of 492 companies were traded. Of these, 351 stocks closed higher, 104 fell and 37 remained unchanged.
TPL Properties led the volumes chart with trading in 56.5 million shares, rising Rs1.03 to close at Rs11.31. Foreign investors sold shares worth Rs1.2 billion, the National Clearing Company reported.
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