Stocks maintain bull run on improved economic indicators

Benchmark KSE-100 index adds 1,004 points to settle at 150,975

The Pakistan Stock Exchange (PSX) maintained its bullish trend on Tuesday, with the KSE-100 index surging 1,004 points to 150,975, driven by improved macroeconomic indicators and institutional buying.

The latest market performance reflected investor confidence and a strong momentum across key sectors. Investor participation remained robust, supported by gains in heavyweight sectors such as banking, energy, cement, and power generation in anticipation of continued macroeconomic stability and earnings growth in the coming quarters.

Reporting the latest trade numbers, the Pakistan Bureau of Statistics (PBS) announced a trade deficit of $2.88 billion in August, a 9% month-on-month contraction compared with July’s deficit of $3.15 billion.

Read: Bullish week lifts stock market above 145,000

Arif Habib Limited (AHL) said in its report that the intra-day high of 151k brought the KSE-100 index within striking distance of the 151.2k weekly target, flagged during last week’s consecutive negative sessions.

Some 54 shares rose while 45 fell, where the major positive contribution came from Engro Holdings (+6.98%), Fauji Fertiliser (+1.32%), and Engro Fertilisers (+2.59%). On the other hand, Lucky Cement (-1.08%), Fauji Cement (-2.35%), and Pakgen Power (-6.13%) were the biggest index drags, it said.

Among key economic news, Pakistan’s August trade deficit narrowed to $2.9 billion vs $3.5 billion in July. Meanwhile, floods damaged thousands of acres of cultivated lands in Punjab with 60% of rice crop, 30% of sugarcane crop lost, and cotton production was feared to drop 35% compared to the annual target.

Read More: PSX records sharp gains as inflation eases to 3%

The index needs support around the 150k level, which suggests that a sustained move above 151.2k is likely, AHL concluded.

Overall trading volumes dropped to 1.1 billion shares compared to Monday’s tally of 1.2 billion. Traded value stood at Rs44.4 billion.

Shares of 479 companies were traded of which, 226 rose, 232 fell, and 21 remained unchanged. The Bank of Punjab topped the volumes chart, trading 174.4 million shares, and gaining one rupee to close at Rs17.58.