Institutional interest propels PSX higher

The Pakistan Stock Exchange (PSX) extended its northbound march on Monday as the benchmark KSE-100 index surged nearly 1,200 points, powered by institutional investors, who further built their portfolios.

Investor interest was mainly concentrated in selective stocks of fertiliser, banking, energy and technology sectors. A key highlight of the day was the release of inflation numbers for October, where the Consumer Price Index (CPI) showed a reading of 6.24%. At the commencement of trading in the market, the index took a dip to the intra-day low of 161,893 points. However, it recovered swiftly and reached the intra-day high of 163,935 after midday. Thereafter, market players opted for profit-taking, pushing the index down. The bourse recovered again before the end of trading.

At close, the KSE-100 index recorded a notable increase of 1,171.42 points, or 0.72%, to settle at 162,803.16.

Topline Securities, in its market review, said the KSE-100 index traded between the intra-day high of 163,935 and low of 161,893. It closed the session at 162,803, marking a gain of 1,171 points.

It remarked that the upward momentum from previous sessions persisted, supported by institutional inflows, particularly from local mutual funds, as indicated by the data compiled by National Clearing Company of Pakistan Limited (NCCPL).

Heavyweight stocks such as Fauji Fertiliser Company, Engro, National Bank of Pakistan, Hub Power and TRG Pakistan led the advance, which collectively contributed 1,131 points to the index. Overall market participation remained strong, with trading volumes surging to 949 million shares, Topline added. Commenting on the monthly performance, JS Research reported that the KSE-100 posted a decline of 2.3% month-on-month (MoM), breaking a five-month winning streak.

The index made a correction of 7% since touching its recent peak, driven by profit-taking from insurance companies, mutual funds and foreign investors, which resulted in net selling of equities worth $104 million amid geopolitical tensions, it said.

Notably, border tensions with Afghanistan weighed on sentiment, though the market recovered slightly following a ceasefire. Despite strong corporate results and a staff-level agreement with the International Monetary Fund, external political concerns overshadowed the positive developments.

Overall trading volume decreased to 949.4 million shares compared with the previous tally of 952.9 million. The traded value of shares stood at Rs47.6 billion.

Shares of 486 companies were traded on the ready market, out of which 262 closed higher, 176 declined and 48 remained unchanged.

Hascol Petroleum led the volume chart with trading in 119.5 million shares, gaining Rs1.15 to close at Rs17.07. It was followed by The Bank of Punjab with 81.2 million shares, rising Rs0.74 to close at Rs35.51 and WorldCall Telecom with 44.1 million shares, adding Rs0.04 to settle at Rs1.85. Foreign investors were sellers of shares worth Rs649.5 million.