PSX Gains 578 Points as Political Tensions Ease and Corporate Earnings Shine
The Pakistan Stock Exchange (PSX) saw a sharp rebound on Tuesday, advancing by over 550 points driven by a surge in blue-chip stocks and renewed investor confidence during the corporate earnings season.
The KSE-100 index initially dipped to an intra-day low of 84,856.21 points, reflecting losses from the previous day. However, it quickly reversed course as political tensions eased following the opposition’s decision to call off planned protests.
Investor optimism surged with strong corporate earnings forecasts and key developments at the Shanghai Cooperation Organisation (SCO) summit. Additional factors contributing to the market’s rise included rupee stability and ongoing government discussions surrounding China-Pakistan Economic Corridor (CPEC) phase-II.
As a result, the market gained momentum, with the KSE-100 index surpassing the 85,000 mark, peaking at 85,893.99 points before closing just below that at 85,840.34 points, registering a 578.96 point rise.
Blue-Chip Stocks Lead the Rally
According to Ahsan Mehanti, Managing Director of Arif Habib Corp, the bullish market was led by blue-chip shares. Investors showed confidence due to strong earnings outlooks and diplomatic gains at the SCO summit. Political stability, rupee strength, and progress on CPEC phase-II were key factors driving the positive close.
In its daily commentary, Topline Securities highlighted that the fertilizer and exploration & production (E&P) sectors were the major contributors to the market’s rally. Investor enthusiasm remained high as many anticipated new investment opportunities arising from the SCO summit.
Key contributors to the index’s rise included Mari Petroleum, Engro Fertilisers, Oil and Gas Development Company, Attock Refinery, and Fauji Fertiliser, collectively adding 425 points to the index.
Stock Market Performance Overview
At the close of trading, the KSE-100 index gained 578.96 points or 0.68%, ending the session at 85,840.34. A total of 443 companies were traded, with 202 stocks rising, 174 declining, and 67 remaining unchanged.
The day’s volume leader was PTCL, with 37.9 million shares traded, followed by Hub Power and Kohinoor Spinning Mills. The total trading volume for the day was 422.1 million shares, slightly lower than Monday’s figure of 477.6 million shares, while the value of traded shares stood at Rs24.5 billion.
Foreign investors sold shares worth Rs379.6 million, according to the National Clearing Company of Pakistan Limited (NCCPL).
Outlook
Analysts from JS Global and Arif Habib Limited cautioned that the market may see some profit-taking in the coming sessions. However, investors are advised to book profits at current levels and await future buying opportunities following market dips.