PSX extends rally on improved confidence

Express Tribune

7 hours ago

Pakistan Stock Exchange (PSX), after hitting the second-highest single-day gain a day ago, extended its bull-run on Wednesday as investors remained upbeat about the market outlook.
The excitement from Tuesday's historic surge, when the KSE-100 index jumped over 6,000 points, was carried forward into the new session due to rising investor confidence, fuelled by easing geopolitical tensions and supportive economic signals.
In opening hours, the index jumped 900 points, before entering a range-bound session, where traders locked in profits. The upward momentum was driven by relative calm in the Middle East following ceasefire between Israel and Iran and improving domestic economic indicators.
The approval of $194 million in financing from the World Bank and $350 million from the Asian Development Bank (ADB) strengthened Pakistan's external position and broader economic outlook.
The index touched the intra-day high of 123,257 and low of 122,169, before settling at 122,762, up 515 points, or 0.42%.
Arif Habib Corp MD Ahsan Mehanti noted that stocks recovered as investors weighed Israel-Iran ceasefire talks, easing inflation, a surge in exports and approval of $194 million and $350 million in World Bank and ADB loans, respectively. "Surging global equities, deliberations on privatisation of state enterprises, strong rupee and the circular debt management plan were the key catalysts for bullish close at the PSX," he said.
KTrade Securities, in its report, wrote that the PSX extended its rally following the US-brokered ceasefire between Israel and Iran. The index rose 515 points while trading volumes climbed to 750 million shares, largely fuelled by rollover activity ahead of futures expiry.
It observed that positive sentiment was driven by strong performance in banking, cement, fertiliser and food sectors, with notable support coming from stocks such as Bank AL Habib, HBL, Fatima Fertiliser, DG Khan Cement and National Foods. The broader market outlook remains upbeat as momentum is likely to
continue, provided the ceasefire remains in place, the report added.
Arif Habib Limited (AHL) said that the KSE-100 index built on the previous day's surge with a 0.42% gain and closed at the high for June. A total of 55 stocks advanced while 41 declined, where Bank AL Habib (+4.15%), HBL (+3.03%) and Fatima Fertiliser (+6.54%) were the biggest contributions to index gains.
AHL pointed out that in a statement regarding trade talks with the US, Finance Minister Muhammad Aurangzeb said "both sides showed satisfaction over the ongoing negotiations and resolved to conclude them next week".
JS Global analyst Mubashir Anis Naviwala commented that the KSE-100 index surged over 500 points, extending its bullish run on the back of sustained investor confidence. Positive sentiment dominated the session, where the index touched the intra-day high of 123,257.
Overall trading volumes decreased to 749.8 million shares compared with Tuesday's tally of 804.8 million. The value of shares traded was Rs28 billion. Shares of 472 companies were traded. Of these, 274 stocks closed higher, 161 fell and 37 remained unchanged.
WorldCall Telecom was the volume leader with trading in 102.4 million shares, gaining Rs0.03 to close at Rs1.49. It was followed by Pakistan Refinery with 47.1 million shares, rising Rs2.39 to close at Rs35.27 and Cnergyico PK with 39.6 million shares, gaining Rs0.09 to close at Rs7.25. Foreign investors sold shares worth Rs949 million, the National Clearing Company reported.