PSX hits historic 156,000-point mark

Index rises 1,810 points, getting support from economic reforms, earnings outlook

KARACHI:

Pakistan Stock Exchange (PSX) continued its remarkable momentum on Monday as the benchmark KSE-100 index crossed the 156,000 mark for the first time in history, which represented robust investor confidence and the chances of high growth in Pakistan's economy.

At the close of trading, the index registered a surge of 1,810.11 points, or 1.17%, at 156,087.31.

Prime Minister Shehbaz Sharif expressed profound satisfaction over the PSX's performance. In a statement, the premier lauded the efforts of his economic team, emphasising that the landmark performance reflects the business community's growing confidence in the government's reform-driven economic policies.

"The PSX's record performance showcases the resilience of our economy and the trust of investors in our forward-looking policies," the PM remarked. KTrade Securities wrote in its market wrap that the bourse continued the bullish momentum as the KSE-100 climbed 1,810 points to close at a new all-time high of 156,087.

Investor sentiment remained largely positive, driven by impressive performances in banking, power and E&P sectors, it said. Major contributors to the rally were Engro Holdings, Hub Power, Lucky Cement, Mari Energies and Sui Northern Gas Pipelines Ltd (SNGPL). The market's resilience reflects sustained investor confidence in Pakistan's long-term economic outlook, KTrade added.

Arif Habib Limited (AHL) Head of Research Sana Tawfik told The Express Tribune that multiple factors were driving the bullish sentiment. First of all, investor enthusiasm grew following news that the government was actively working to resolve the longstanding circular debt issue in the energy sector, a key challenge afflicting Pakistan's economy.

Market performance improved as stakeholders widely anticipated the announcement of status quo in the upcoming monetary policy committee meeting. A stable policy rate is believed to support business activity and investment, she said.

Additionally, expectations of growth in construction and cement sectors, particularly in the wake of post-flood reconstruction, drew significant buying interest in attractive stocks. Projections of handsome and better-than-expected quarterly earnings in key sectors added to investor optimism, which reinforced the bullish outlook.

"Given the confluence of macroeconomic stability, policy clarity and sector-specific triggers, the bullish trend is expected to continue unabated in the near term," Tawfik said.

In its report, AHL stated that stocks maintained their uptrend at the start of the week as the KSE-100 closed above 156k. Some 58 shares rose while 41 fell, where Engro Holdings (+5.45%), Hub Power (+5.79%) and Lucky Cement (+2.66%) contributed the most to index gains.

AHL cited reports saying that according to initial estimates, the economic cost of the 2025 floods was around Rs409 billion ($1.4 billion), equivalent to 0.33% of GDP.

JS Global analyst Mubashir Anis Naviwala commented that strong investor interest was seen in investment banking, power generation, exploration & production (E&P) and cement sectors.

It was a broad-based rally that reflected elevated investor confidence, he said and projected an upbeat outlook, with dips offering fresh accumulation opportunities in leading sectors.

Overall trading volumes increased to 1.13 billion shares compared to 1.08 billion in the previous session. Traded value stood at Rs62.3 billion.

Shares of 482 companies were traded. Of these, 229 stocks closed higher, 228 fell and 25 remained unchanged.

K-Electric was the volume leader with trading in 93.7 million shares, rising Rs0.28 to close at Rs5.62. It was followed by The Bank of Punjab with 71.4 million shares, losing Rs0.04 to close at Rs19.65 and Dewan Cement with 63.9 million shares, gaining Rs1.03 to close at Rs14.78. Foreign investors sold shares worth Rs1 billion, the National Clearing Company reported.