PSX records sharp gains as inflation eases to 3%

KSE-100 index advances 1,353 points, closes just short of 150k mark

KARACHI:

Investors resorted to robust buying of attractive shares at the Pakistan Stock Exchange (PSX) on Monday as the benchmark KSE-100 index soared around 1,350 points and closed just a few points short of the 150,000 mark.

The market exhibited a sustained momentum throughout the session, during which the index climbed to the intra-day peak of 150,066 points. By the end of trading, the KSE-100 settled at 149,971.12, up a handsome 1,353.34 points, or 0.91%.

The rally reflects optimism among market participants, triggered by positive cues from key sectors such as cement and exploration & production. Revealing inflation statistics, the Pakistan Bureau of Statistics (PBS) reported that the Consumer Price Index (CPI) fell from 4.1% in July to 3% in August, driven by lower food and electricity prices.

Arif Habib Limited (AHL) commented in its report that a strong follow-through rally, continuing Friday’s sharp momentum, propelled the KSE-100 index back towards the 150,000 level.

Some 67 shares rose while 32 fell, where the major positive contribution came from Lucky Cement (+4.24%), Oil and Gas Development Company (+2.27%) and Fauji Cement (+7.39%). On the flip side, Fauji Fertiliser Company (-0.63%), Systems Limited (-1.77%) and Pakgen Power (-6.33%) were the biggest index drags, said AHL.

Among corporate news, Sazgar Engineering released its FY25 results, where the company declared earnings per share of Rs131.29, up 106% year-on-year (YoY), and dividend per share of Rs52. For 4QFY25, the EPS remained steady at Rs57.60 while the company announced dividend per share of Rs20.

AHL pointed out that the monthly CPI-based inflation eased in August, though torrential monsoon rains disrupted supply chains and pushed up prices. The CPI recorded a rise of 3% YoY compared to 4.1% in July. The brokerage anticipated that gains in the KSE-100 index would continue towards the weekly draw at 151.2k.

Overall trading volumes decreased to 1.2 billion shares compared with previous session’s tally of 1.3 billion. Traded value stood at Rs48.8 billion. Shares of 480 companies were traded. Of these, 272 rose, 175 fell and 33 remained unchanged. The Bank of Punjab was the volume leader with trading in 97.7 million shares, gaining Rs1.51 to close at Rs16.58.