PSX sees one of strongest single-day recoveries
Foreign funds would divert their liquidity into buying Pakistan’s stocks. This would merely increases prices of shares and be profitable for those who already hold stocks. PHOTO: FILE
The Pakistan Stock Exchange (PSX) enjoyed a remarkable turnaround on Friday as the benchmark index staged a powerful recovery of around 5,000 points, crossing once again the 160,000 mark and ending the week on an emphatically bullish note.
Investor optimism surged after reports confirmed that Pakistan and the Afghan government had reached a ceasefire agreement during talks in Istanbul, mediated by Turkiye. The breakthrough eased geopolitical tensions that had rattled the market earlier in the week, sparking a wave of broad-based buying across major sectors.
Heavyweight stocks in banking, fertiliser, technology and cement led the charge, with United Bank, Meezan Bank, Fauji Fertiliser and Habib Bank emerging as key contributors to the rally. Trading activity also picked up pace, with robust volumes, reflecting renewed investor confidence.
Arif Habib Ltd described the rebound as "just what the doctor ordered," noting that the strong finish trimmed the week's earlier losses and signalled the market's return to strength. Analysts said the rally was driven by a mix of short-covering, bargain hunting and improved sentiment, suggesting that the index may continue to build momentum in the coming sessions as stability returns to regional and domestic fronts.
"The rally was fueled by optimism following the ceasefire agreement between Pakistan and Afghanistan, brokered in Istanbul under the mediation of Turkiye and Qatar. The development revived investor confidence, easing geopolitical concerns that had weighed heavily on sentiment throughout the week," said Ali Najib, Deputy Head of Trading at Arif Habib Ltd.
Broad-based buying dominated the session, with notable contributions from the banking, fertiliser, technology and cement sectors. Heavyweights such as UBL, Meezan Bank, Fauji Fertiliser Company, Bank AL Habib, HBL, Systems Ltd, Lucky Cement, Bank Alfalah, NBP and MCB Bank collectively added 3,083 points to the index.
AHL noted that for the coming week, any early declines should be viewed as buying opportunities, with the 164,000 level seen as the next potential upside target for the KSE-100 index.
At the close of trading, the benchmark KSE-100 index posted a powerful gain of 4,898.86 points, or 3.13%, and settled at 161,631.73, marking one of the strongest single-day recoveries in recent sessions.
Topline market review said that a sharp recovery was observed as the KSE-100 index increased by 3.13%. This positivity was on account of news that Pakistan and the Afghan government had agreed to maintain a ceasefire following a fresh round of talks in Istanbul, which was confirmed by Turkiye's foreign ministry.
Top positive contribution to the index came from UBL, Meezan Bank, FFC, HBL, Bank AL Habib, Systems Ltd, Lucky Cement and Bank Alfalah, as they cumulatively contributed +2,390 points. Traded value-wise, NBP (Rs3 billion), The Bank of Punjab (Rs2.54 billion), Hubco (Rs2.2 billion), Pak Elektron (Rs2.03 billion) and FFC (Rs1.5 billion) dominated the trading session.
Overall market activity showed significant improvement, with total traded volume rising to 952.9 million shares compared with 848.3 million in the previous session. The traded value of shares stood at Rs42.3 billion.
Shares of 486 companies were traded on the ready market, out of which 372 closed higher, 77 declined and 37 remained unchanged.
WorldCall Telecom led the volume chart with 98.9 million shares, gaining Rs0.05 to close at Rs1.81. It was followed by K-Electric with 85.8 million shares, down Rs0.05 to close at Rs5.37 and The Bank of Punjab with 78.5 million shares, adding Rs1.27 to settle at Rs34.77. Foreign investors were buyers of shares worth Rs595.8 million, according to NCCPL.