PSX at peak as traders win support
Listen to article
The Pakistan Stock Exchange (PSX) soared to a new all-time high on Tuesday, driven by investor confidence following a high-level meeting between business leaders and Army Chief Asim Munir, where assurances of institutional support for economic progress were given.
The government's success in securing a majority in Senate elections, optimism surrounding the State Bank of Pakistan's (SBP) expected monetary easing and forecasts of robust corporate earnings further reinforced the market rally.
The benchmark KSE-100 index surged to intra-day high of 1,684 points, before settling at 139,419.62, an increase of 1,202.03 points, or 0.87%.
According to Ahsan Mehanti of Arif Habib Corp, stocks traded at a new all-time high after business leaders met with army chief and were assured of the military's support for economic progress. Additionally, the government won a majority in Senate seats, further bolstering the bullish sentiment.
Speculation about the SBP's anticipated policy easing next week, alongside expectations of handsome financial results and annual payouts, fuelled the bullish activity at the PSX, he said.
In its review, Topline Securities commented that bulls roared back to life in Tuesday's trading session, lifting the benchmark index to impressive levels. The index surged to intra-day high of 1,684 points, before closing at 139,420, reflecting a solid gain of 1,202 points.
The rally was fuelled by positive investor sentiment and renewed market confidence, ahead of the anticipated announcement of robust corporate results. This wave of optimism helped paint a bullish picture across the board, setting the tone for a potentially upbeat week ahead, it said.
Key movers of the day were Engro Holdings, HBL, Fauji Fertiliser Company (FFC), Engro Fertilisers, Pakistan Petroleum and Oil and Gas Development Company, which together contributed 1,142 points to the index. Trading activity remained vibrant, with total volumes hitting 629 million shares and traded value reaching Rs34.7 billion, Topline added.
In its commentary, Arif Habib Limited (AHL) noted that a one-sided price delivery from the 137,200-138,200 zone would now trigger a move towards the weekly draw at 140,500 points.
Some 59 shares rose while 39 fell, with Engro Holdings (+5.24%), HBL (+4.42%) and FFC (+1.45%) contributing the most to index gains. On the flip side, UBL (-0.95%), Pakistan Services (-9.67%) and Systems Limited (-1.35%) were the biggest drags, it said.
AHL mentioned that according to SBP data foreign companies operating in Pakistan repatriated over $2 billion in profits and dividends in FY25. "Momentum remains strong, with the KSE-100 holding the first offered support zone. This bodes well for the remaining week," it added.
Senior analyst Ali Najib stated that post-Monday's negativity, trading resumed on a buoyant note in the morning. The fertiliser sector led the show on Tuesday as Engro Holdings, Fauji Fertiliser and Engro Fertilisers saw hefty buying since the opening bell on expectations of strong results along with higher-than-anticipated dividend payouts.
In addition, robust buying interest was seen across key sectors, including commercial banks, cement, oil and gas exploration, oil marketing companies, power generation and refineries, reflecting broad-based investor confidence and sector-wide optimism, Najib said.
The 137,000 level now acts as key support for the KSE-100, driven by improved earnings and foreign inflows. A drop below may take the index to 135,000, where attractive valuations and policy easing hopes could spark renewed buying, he added.
Overall trading volumes increased to 629 million shares compared with Monday's tally of 608.2 million. Traded value stood at Rs34.7 billion. Shares of 478 companies were traded. Of these, 268 stocks closed higher, 178 fell and 32 remained unchanged.
First Dawood Properties was the volume leader with trading in 44.1 million shares, gaining Rs1 to close at Rs7.64. It was followed by WorldCall Telecom with trading in 26.4 million shares, falling Rs0.01 to close at Rs1.46 and Pakistan Telecommunication Company Ltd with 24.9 million shares, rising Rs0.91 to close at Rs23.96.
During the day, foreign investors sold shares worth Rs375.5 million, the National Clearing Company reported.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Express Tribune
6 minutes ago
- Express Tribune
PSX opens bullish as KSE-100 crosses 140,000 mark
The Pakistan Stock Exchange's benchmark KSE-100 index surged 863.90 points on Tuesday to reach 140,243.95 — up 0.62% from the previous close of 139,380.05 — amid optimism as Finance Minister Muhammad Aurangzeb departed for the United States to finalise a trade agreement. This marks his second US visit in two weeks, with the government signalling that the deal with Washington is near. The trip comes after Foreign Minister Ishaq Dar said on Friday that the US and Pakistan were "very close" to a trade deal that could come within days, but comments from the US after Dar met with Secretary of State Marco Rubio mentioned no timeline. Read: Finance minister heads to US to finalise trade deal During the session, the index touched an intraday high of 140,296.65 and a low of 139,733.06. Trading volume stood at 47.34 million shares, with a total value of Rs 5.36 billion. On Monday, PSX closed modestly higher as the benchmark KSE-100 index rose 173 points to close at 139,380. Investor sentiment was buoyed by optimism ahead of the State Bank of Pakistan's (SBP) monetary policy announcement and the credit rating upgrade, bringing Pakistan's rating to 'B-' with a stable outlook. Read more: PSX rises modestly but couldn't hold 140k level Arif Habib Limited (AHL) Deputy Head of Trading Ali Najib remarked that the PSX again attempted to pass the 140,000 mark but in vain, as the KSE-100 index ended the day at 139,380 points. Overall trading volumes decreased to 589.3 million shares compared with Friday's tally of 634.8 million. Traded value increased to Rs34.6 billion as compared to Rs24.6 billion in the previous session. Overall, shares of 483 companies were traded. Of these, 251 stocks closed higher, 205 dropped and 27 remained unchanged.
Business Recorder
35 minutes ago
- Business Recorder
Pakistan's central bank seen cutting interest rate by 50 bps as inflation cools
KARACHI : Pakistan's central bank is expected to cut its key interest rate by 50 basis points to 10.5% on Wednesday, a Reuters poll showed, with a unanimous forecast for further easing as inflation slows and external balances improve. All 14 analysts surveyed expect the State Bank of Pakistan to cut rates, with nine projecting a 50 bp cut - also the median forecast - while four see a deeper 100 bp cut and one a 25 bp reduction. Consumer price inflation stood at 3.2% in June, while average inflation for the fiscal year ending June 30 fell to a nine-year low of 4.49%, from 23.4% the year before. With real rates firmly positive, most analysts expect easing to continue, backed by stabilising indicators and high government borrowing costs. Sana Tawfik, head of research at Arif Habib Limited, said slowing inflation and an improved external account give the SBP room to cut, but warned that rising imports and currency pressure called for a cautious, data-driven approach. Reserves, supported by International Monetary Fund inflows under a $7 billion programme and bilateral financing, have grown to more than $14 billion. Finance ministry projects July inflation at 3.5-4.5% as price pressures ease Renewed rupee pressure triggered a security-led crackdown on informal dollar trade, underscoring the government's push to stabilise the exchange rate as the central bank considers further easing. The SBP began cutting rates from a record 22% in June 2024 before pausing in March after 10 percentage points of easing. It then cut by a further 100 bps in May but held again in June as Iran-Israel tensions escalated. Earlier this month, SBP Governor Jameel Ahmad told the Reuters NEXT Asia summit that the central bank would maintain a 'tight' stance to stabilise inflation within its 5-7% target, adding that its policy was already affecting both inflation and the external account. Ahmed Mobeen, senior economist at S&P Global Market Intelligence, said the SBP is likely to cut rates further but may adopt a more 'cautious' pace in the second half of the year due to rising import demand and global commodity risks. Mustafa Pasha, chief investment officer at Lakson Investments, said the central bank could gradually lower rates into the high single digits in the first half of 2026, given stronger buffers and the completion of the budget and IMF review. S&P Global upgraded Pakistan's rating to 'B-' from 'CCC+' last week, citing lower inflation, fiscal consolidation and stronger reserves.
Business Recorder
an hour ago
- Business Recorder
Buying momentum persists, KSE-100 gains ovr 600 points
The Pakistan Stock Exchange (PSX) observed buying momentum, with the benchmark KSE-100 Index gaining over 500 points during the opening minutes of trading on Tuesday. At 11:35am, the benchmark index was hovering at 139,982.79 level, an increase of 602.74 points or 0.43%. Buying was seen in key sectors including automobile assemblers, cement, commercial banks, fertilizer, oil and gas exploration companies and refinery. Index-heavy stocks, including ARL, PRL, MARI, POL, PPL, SNGPL and UBL traded in the green. On Monday, PSX saw modest upward momentum, fueled by investor interest in cement and technology stocks ahead of the monetary policy announcement and key corporate earnings. The benchmark KSE-100 Index gained 172.77 points, or 0.12%, to close at 139,380.06 points Internationally, Asia shares eased on Tuesday while the euro nursed its losses as investors pondered the downside of the US-EU trade deal and the reality that punishing tariffs were here to stay, with unwelcome implications for growth and inflation. The initial relief over Europe's 15% levy quickly soured when set against the 1% to 2% that stood before President Donald Trump took office. Leaders in France and Germany lamented the outcome as a drag on growth, pulling down stocks and bond yields across the continent while slugging the single currency. Trump also flagged a 'world tariff' rate of 15% to 20% on all trading partners that were not negotiating a deal, among the highest rates since the Great Depression of the 1930s. A further risk to world growth came from a sudden spike in oil prices after Trump threatened a new deadline of 10 or 12 days for Russia to make progress toward ending the war in Ukraine or face tougher sanctions on oil exports. The air of caution saw MSCI's broadest index of Asia-Pacific shares outside Japan slip 0.7%. Japan's Nikkei eased 0.8% while Chinese blue chips fell 0.1%. This is an intra-day update
