The Pakistan Stock Exchange (PSX) maintained its bullish trend on Tuesday as the KSE-100 index surged 1,004 points, or 0.67%, to 150,975, driven by improved macroeconomic indicators and stock buying in attractive sectors.
The market performance reflected investor confidence and a strong momentum across key sectors. Participation remained robust, supported by gains in banking and fertiliser sectors in anticipation of continued economic stability and corporate 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.
Arif Habib Corp MD Ahsan Mehanti commented that stocks closed at an all-time high amid upbeat economic data. "The record bullish close was driven by surging forex reserves, a soft 3% inflation, a 7% rise in August oil sales and expectations of government spending on flood reconstruction," he said.
In its report, Arif Habib Limited (AHL) said that the intra-day high of 151k brought the KSE-100 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 land in Punjab with 60% of rice crop and 30% of sugarcane crop lost while cotton production was feared to drop 35% compared to the annual target.
The index needs support around the 150k level, which suggests that a sustained move above 151.2k is likely, AHL concluded.
KTrade Securities noted in its market wrap that the PSX extended its ongoing rally, undeterred by the widespread floods in the country. Investor sentiment remained broadly positive, fueled by strong performance by investment bank, fertiliser and commercial bank sectors.
Despite concerns over potential economic disruption, inflationary pressure and infrastructure damage in the aftermath of the floods, the PSX showed resilience. Investors appear to maintain an upbeat outlook on Pakistan's long-term economic prospects, KTrade wrote.
Topline Securities stated that the rally continued as the market maintained a strong momentum throughout the day. As a result, the benchmark index surged 1,105 points during intra-day trading, before closing at 150,975, up 1,004 points, or 0.67%.
Key support for the index came from Engro Holdings, Fauji Fertiliser, Engro Fertilisers, Bank AL Habib and Bank Alfalah, which collectively contributed 938 points, Topline added.
Overall trading volumes dropped to 1.1 billion shares compared with Monday's tally of 1.2 billion. Traded value stood at Rs44.4 billion.
Shares of 479 companies were traded. Of these, 226 rose, 232 fell and 21 remained unchanged.
The Bank of Punjab topped the volumes chart with trading in 174.4 million shares, gaining Rs1 to close at Rs17.58. It was followed by Pak Electron with 52.7 million shares, losing Rs0.07 to close at Rs52.47 and First National Equities with 39.8 million shares, sliding Rs0.40 to close at Rs6.64.
During the day, foreign investors sold shares worth Rs245.8 million, the National Clearing Company reported.
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