PSX breaks record for second day in a row

Driven by mutual fund buying, KSE-100 adds 860 points and settles at 188,622

KARACHI:

The Pakistan Stock Exchange (PSX) stretched its positive momentum on Tuesday as the benchmark KSE-100 index rose 860 points, or 0.46%, to close at a new peak of 188,622, supported by selective buying interest.

The market saw some volatility, with the index oscillating between the intra-day high of 188,958 and low of 187,192. Despite intermittent profit-taking, the index managed to hold gains and ended in the green. Investor sentiment remained constructive, underpinned by easing geopolitical concerns, improving macroeconomic indicators and expectations of a rate cut. Buying from local mutual funds played a key role in supporting the upward trend.

KTrade Securities wrote in its market wrap that the PSX extended its bullish momentum, with the KSE-100 closing at 188,622, up 860 points. Sentiment remained supportive amid easing geopolitical tensions, improving macro signals and increasing expectations of a policy rate cut, along with encouraging domestic indicators.

It said select stocks drew interest on the back of recent corporate developments, including hydrocarbon exploration updates and new auto launches, while broader participation reflected renewed inclination towards blue-chip stocks. Heavyweights such as Engro Holdings, Pakistan Petroleum, Sazgar Engineering, Oil and Gas Development Company and PSO collectively added 661 points to the index. Going forward, the market remains sensitive to external developments and any geopolitical escalation could trigger near-term volatility, predicted KTrade.

Topline Securities attributed the upward momentum to buying by local mutual funds, as reflected in data from a day ago. Additionally, Sazgar Engineering notified that it would commence bookings for its CKD models of "Tank-500 Hi4-T 4x4 2.0L Turbo AT PHEV and HEV" starting January 26.

Select index heavyweights such as Engro Holdings, Pakistan Petroleum, Sazgar Engineering, OGDC and PSO added 661 points. However, losses in Meezan Bank, Hub Power and UBL partially offset the gains, dragging the index down by 249 points, added Topline.

Arif Habib Ltd Deputy Head of Trading Ali Najib commented that the PSX maintained its bullish momentum, with the KSE-100 hitting another all-time high at 188,622, up 860 points. "The session witnessed a tug of war between bulls and bears, however, bulls eventually dominated, enabling the market to close on a positive note. Overall sentiment remained buoyant as investors continued to strengthen positions while selective profit-taking was also observed," he said.

On the corporate front, Sazgar Engineering informed the PSX that it would commence bookings for CKD models of "Tank-500 Hi4-T 4×4 2.0L Turbo AT (PHEV & HEV)" from Monday. Following the announcement, its stock hit the upper circuit at Rs1,918.91, gaining Rs168.91 (+10%).

Additionally, the Signature Residency Developmental REIT Scheme, comprising both residential and commercial components, was oversubscribed eight times, reflecting strong investor appetite, added Najib. Overall trading volumes increased to 1.23 billion shares compared with Monday's tally of 1.2 billion. The value of traded shares stood at Rs63.9 billion.

Shares of 487 companies were traded. Of these, 240 stocks closed higher, 213 declined and 34 remained unchanged.

Hascol Petroleum was the volume leader with trading in 113 million shares, rising Rs2.5 to close at Rs27.47. It was followed by K-Electric with 70.4 million shares, gaining Rs0.2 to close at Rs6.75 and Treet Corporation with 58.6 million shares, climbing Rs2.59 to close at Rs36.17. During the day, foreign investors sold shares worth Rs1.35 billion, the National Clearing Company reported.