Stocks start Dec with fresh momentum

Index advances 1,384 points on stable inflation, broad-based buying

KARACHI:

The Pakistan Stock Exchange (PSX) welcomed both the first trading day of December and the first session of the new week with a rebound, gaining nearly 1,400 points.

Despite remaining under pressure in the morning, the market made a swift recovery as investor sentiment strengthened. Fresh investment flowed into key sectors including automobile assemblers, cement, commercial banks, fertiliser, oil & gas exploration and marketing.

Adding to the upbeat tone, Pakistan's core inflation for November cooled mildly, slipping to 6.15% from 6.24% in the previous month. Investors interpreted it as a welcome sign of price stability. The benchmark KSE-100 index moved within a wide band, touching the intra-day high of 168,246 and low of 166,025. At close, the index registered an increase of 1,384.50 points, or 0.83%, and settled at 168,062.19.

KTrade Securities observed that PSX continued its strong momentum, with the KSE-100 gaining 1,384 points (+0.83%). The rally was broad-based, led by energy, power, cement and technology sectors. Heavyweights such as Hub Power, Oil and Gas Development Company, Lucky Cement, Mari Energies, MCB Bank and Pakistan Telecommunication Company drove most of the upside, it said.

Looking ahead, sentiment remains upbeat, where the IMF board meeting on December 8 and the expected release of loan tranche are the key catalysts. Regional geopolitical changes may also shape short-term movements, KTrade said.

JS Global analyst Mubashir Anis Naviwala commented that PSX witnessed another strong session as the KSE-100 closed at 168,062, rising 1,384 points. The market traded in a stable upward channel throughout the day as investors showed confidence.

Power, exploration & production, cement, technology and banking sectors contributed the most to the rally, while pressure was seen in chemical, pharma and modaraba stocks. Market momentum remained broadly strong as the index traded close to its 52-week high of 169,988, signaling sustained bullish sentiment, Naviwala stated. According to Arif Habib Limited (AHL) Deputy Head of Trading Ali Najib, the PSX kicked off December 2025 on a strong note. The market continued last week's bullish momentum as investors further strengthened their equity positions.

Energy stocks led the rally amid expectations of a potential circular debt-related payment this week. As a result, Hub Power, OGDC and Mari Energies saw renewed buying interest, collectively contributing 448 points, he said. Meanwhile, Lucky Cement gained traction after announcing that its joint venture with the Rawji Group would expand cement production capacity in Congo from 1.31 million tons to 2.91 million tons annually. The stock advanced Rs7.11 (+1.55%) and added 106 points to the index.

On the macro front, inflation eased to 6.1% in November from 6.2% in October, mainly due to a decline in perishable food prices as supply chains normalised following flood-related disruptions. Overall trading volumes jumped to 735.5 million shares compared to the previous tally of 592.7 million. The value of traded shares stood at Rs46.2 billion.

Shares of 484 companies were traded. Of these, 278 closed higher, 162 fell and 44 remained unchanged.

First National Equities led the volumes with trading in 70 million shares, rising Rs1.68 to close at Rs18.51. It was followed by Beco Steel with 42.6 million shares, gaining Rs0.58 to close at Rs7.10 and WorldCall Telecom with 41.7 million shares, up Rs0.02 to close at Rs1.84. Foreign investors sold shares worth Rs984.6 million, the National Clearing Company reported.