PSX extends winning streak, hits record
Pakistan Stock Exchange (PSX) saw no signs of a slowdown in its bullish run on Tuesday as investors continued to accumulate equities while taking cue from stellar corporate earnings and an upbeat market outlook.
The benchmark KSE-100 index surged to a fresh all-time high of 156,563.53, higher by 476.22 points, or 0.31%, compared to the previous day's close.
Following a plunge to the intra-day low of 155,044.26 earlier in the day, the index recovered rapidly and touched the day's high at 157,088.81. Thereafter, the market stayed in the positive zone for the rest of day, finishing the session with modest gains of slightly less than 500 points.
The ongoing rally, which had begun on the back of earnings season, gained pace, underscoring the investor appetite to build positions in lucrative stocks. Additionally, local institutional buying and retail participation supported the rally, led by banking, energy and fertiliser sectors. It came despite macroeconomic headwinds such as the increase in Pakistan's debt-to-GDP ratio to 70.2% in FY25 as public debt rose 13%, outpacing the nominal gross domestic product (GDP) growth of 8%.
KTrade Securities commented that the PSX maintained its momentum as the benchmark index rose 476 points to close at 156,564. Investor sentiment remained positive, largely driven by impressive performances in fertiliser and banking sectors, it said. Major contributors to the rally were Engro Holdings, Fauji Fertiliser, Meezan Bank, Mari Energies, Engro Fertilisers and National Bank. KTrade noted that the bourse stayed resilient in the wake of investor trust in Pakistan's long-term economic outlook, supported by improving fundamentals and sector-specific strength.
Topline Securities noted that the momentum remained strong in Tuesday's trading session, where the market continued its upward trajectory. Leading the gainers, Engro Holdings, Fauji Fertiliser, Meezan Bank, Mari Energies and Engro Fertilisers collectively added 886 points to the index, it said.
Arif Habib Limited (AHL) remarked that the PSX hit the weekly target of 156,500 points on Tuesday. Among key advancers were Engro Holdings (+2.93%), Fauji Fertiliser (+1.57%) and Meezan Bank (+3.13%) while National Foods (-7.92%), Pakistan State Oil (-1.53%) and Habib Metropolitan Bank (-2.49%) were the biggest drags.
In a significant development, US Strategic Metals signed a memorandum of understanding with Frontier Works Organisation (FWO) to explore opportunities in critical minerals. The US company specialises in the production and recycling of critical minerals. As a result, Pakistan expects an investment of $500 million in the minerals sector in the first phase.
"A two-sided volatility signals that excess supply is coming into the market following eight consecutive positive sessions and should become more of a factor in the coming weeks. For now, support remains at 154k," AHL concluded.
Overall trading volumes decreased to 1.07 billion shares compared with Monday's tally of 1.13 billion. Traded value stood at Rs55.2 billion. In an announcement, the PSX said on its social media account X that on Tuesday 73% of the total equity trading value at the bourse was in Shariah-compliant stocks.
During the day, shares of 478 companies were traded. Of these, 154 stocks closed higher, 291 lost ground and 33 stood unchanged.
K-Electric topped the volumes chart with trading in 169.6 million shares, gaining Rs0.13 to close at Rs5.75. It was followed by The Bank of Punjab with 83.9 million shares, edging up Rs0.01 to close at Rs19.66 and WorldCall Telecom with 74.1 million shares, rising Rs0.09 to close at Rs1.52. According to the National Clearing Company, foreign investors sold shares worth a net Rs574.5 million.