Pakistan Stock Exchange (PSX) surged to a new all-time high on Tuesday, gaining over 650 points, as investors responded to strong corporate earnings and speculated about a potential policy rate cut by the State Bank of Pakistan (SBP) early next week.
Initially, the trading session saw a decline, with the KSE-100 index hitting its intra-day low of 90,449.41 points in early hours. However, the market soon reversed course and gained momentum.
Foreign investors’ interest in banking and fertiliser stocks along with institutional buying, amid favourable lending conditions, fueled the bullish run. It helped the market break the 91,000 barrier, with the index reaching its intra-day high of 91,358.15 points.
Although the index eventually settled below the 91,000 threshold, it closed the day with significant gains.
“Stocks reached a new all-time high as investors weighed robust financial results and speculated about an imminent SBP policy rate reduction,” said Ahsan Mehanti, Managing Director of Arif Habib Corp.
“Foreign interest in blue-chip banking and fertiliser stocks as well as institutional buying amid the easing of lending rates played the role of catalysts in bullish activity at the PSX.”
At the close of trading, the benchmark KSE-100 index recorded a rise of 668.57 points, or 0.74%, and settled at 90,864.09
Topline Securities, in its report, wrote that the PSX maintained its positive trajectory as the KSE-100 index surged to the intra-day high of 91,358, which marked the continuation of bullish momentum.
“The positive performance was primarily driven by robust corporate earnings, which exceeded expectations and laid a strong foundation for investor confidence. Institutional buying further supported the rally, reinforcing the overall optimism,” it said.
Key contributors to the index were Fauji Fertiliser, Systems Limited, Cherat Cement, Hub Power and GlaxoSmithKline Pakistan, which collectively added 515 points, Topline added.
Arif Habib Limited (AHL), in its report, said that the PSX hit 91,000 in intra-day trading and closed with a rise of 0.74%.
Some 56 shares rose while 43 fell with Fauji Fertiliser (+3.15%), Systems Limited (+4.89%) and Cherat Cement (+9.25%) being the biggest contributors to the index gains. On the flip side, Engro Fertilisers (-2.31%), Meezan Bank (-2.3%) and Mari Petroleum (-1.66%) were the largest drags, AHL said.
During the day, Pakistan Petroleum (+0.55%) announced 1QFY25 earnings per share of Rs8.67, down 20% year-on-year and up 32% quarter-on-quarter, it added.
JS Global analyst Mohammed Waqar Iqbal said that the bourse performed well, breaking the intra-day resistance of 91,000 with strong volumes.
“Looking ahead, we recommend a buy-on-dips strategy, focusing particularly on cement, exploration and production, and technology sectors,” the analyst added.
Overall trading volumes increased to 602.8 million shares compared with Monday’s tally of 567.3 million. The value of shares traded during the day was Rs28.2 billion.
Shares of 440 companies were traded. Of these, 171 stocks closed higher, 219 fell and 50 remained unchanged.
WorldCall Telecom was the volume leader with trading in 41.4 million shares, gaining Rs0.03 to close at Rs1.27. It was followed by Silkbank with 31.3 million shares, gaining Rs0.08 to close at Rs1.08 and Pace (Pak) Ltd with 30.2 million shares, losing Rs0.28 to close at Rs5.73.
During the day, foreign investors sold shares worth Rs1.4 billion, according to the NCCPL.
