PSX rallies 1.5% as banking sector leads

The Pakistan Stock Exchange (PSX) staged a powerful rebound on Monday, with the benchmark KSE-100 index climbing 2,437 points, or 1.49%, to close at 166,243.

The session began on a cautious note as selling pressure dragged the index to the intra-day low of 164,282 (-0.29%). However, buying interest at lower levels quickly reversed the trend, pushing the index to a high of 166,421 before it settled just below that mark. Investor confidence strengthened on the back of a mix of positive geopolitical and economic signals. A ceasefire and peace talks in Doha helped ease tensions between Pakistan and Afghanistan, lifting the overall market sentiment.

On the economic front, the State Bank of Pakistan (SBP) reported a current account surplus of $110 million for September 2025, a sharp turnaround from a deficit of $325 million in August and a gap of $52 million in September 2024. Additionally, technology exports posted a strong 25% year-on-year increase, reaching $366 million in September, underscoring the resilience of the services sector.

KTrade Securities, in its market wrap, wrote that the PSX experienced a strong rally, predominantly led by gains in the banking sector. The benchmark KSE-100 index surged by 2,437 points, or 1.49%, closing at an impressive 166,243 points. The increase was driven by robust buying in Habib Bank, United Bank, The Bank of Punjab (BOP), the National Bank of Pakistan, Askari Bank, Bank Alfalah and Meezan Bank.

Also, Oil and Gas Development Company (OGDC) contributed to the market's momentum, highlighting the broad-based interest across key sectors. Market activity remained lively, where the KSE All-Share Index recorded a substantial trading volume of 1.47 billion shares.

Meanwhile, improved relations between Pakistan and Afghanistan along with other successful international diplomatic engagements strengthened confidence of investors, it said.

Arif Habib Limited (AHL) observed that the benchmark index was rallying out of last Tuesday's range as it posted a solid 1.49% day-on-day gain on Monday. Some 67 shares rose while 33 fell with HBL (+4.78%), UBL (+2.23%) and BOP (+9.99%) contributing the most to index gains. On the other side, Pakistan Oilfields (-2.46%), K-Electric (-5.28%) and Cherat Cement (-1.46%) were the biggest drags.

For September 2025, the State Bank reported a current account surplus of $110 million compared to a deficit of $52 million in September 2024 and a deficit of $325 million in August 2025. For 1QFY26, Pakistan registered a current account deficit of $594 million compared to a deficit of $502 million last year, it said.

In corporate news, Attock Petroleum signed a memorandum of understanding with Huawei Technologies Pakistan and its partner, AE Power, to jointly establish electric vehicle charging stations and promote electric mobility in the country, AHL added. Topline Securities mentioned that stocks opened the week on a strong note as bulls dominated the trading floor, propelling the KSE-100 index higher by an impressive 2,615 points in intra-day trading. It closed at 166,243, up 2,437 points.

It said that market euphoria was fuelled by a major diplomatic breakthrough as Pakistan and Afghanistan reached an immediate ceasefire agreement following high-level negotiations in Doha. The accord, emphasising mutual respect for sovereignty and territorial integrity, was welcomed by investors as a sign of improving regional stability and potential economic cooperation. Besides, sentiment was charged by banking heavyweights, which collectively contributed 989 points to the index, Topline added.

Overall trading volumes decreased to 1.48 billion shares versus previous tally of 1.98 billion. The value of shares traded stood at Rs51.9 billion.

Shares of 485 companies were traded. Of these, 289 closed higher, 156 dropped and 40 remained unchanged.

K-Electric was the volume topper with trading in 229.7 million shares, losing Rs0.39 to close at Rs6.99. It was followed by WorldCall Telecom with 223.5 million shares, falling Rs0.07 to close at Rs2.16 and BOP with 184.4 million shares, rising Rs3.58 to close at Rs39.41. Foreign investors sold shares worth Rs496 million, the NCCPL reported.