PSX gains ground on easing geopolitical risks

KSE-100 adds 883 points, supported by selective index-heavy stocks

KARACHI:

The Pakistan Stock Exchange (PSX) on Monday ended trading on a firmer note as the KSE-100 index staged a rebound, supported by easing geopolitical tensions and selective buying.

The session began with cautious investor optimism rather than aggressive risk-taking. The index oscillated within a wide band, touching the intra-day high of 185,612 and low of 182,792, reflecting active participation on both sides. A calmer global backdrop encouraged investors to engage in selective activity as signals from Washington and Tehran pointed towards diplomatic engagements. The improvement in sentiment triggered buying in index-heavy names, with market players willing to add exposure after recent volatility, particularly at lower levels.

At close, the benchmark KSE-100 index posted a gain of 883.35 points, or 0.48%, and settled at 185,057.83.

Arif Habib Limited Deputy Head of Trading Ali Najib noted that the PSX ended trading on a positive note, where the KSE-100 advanced 883 points. Investor sentiment improved following constructive geopolitical developments. Official statements from both the US and Iran indicated a willingness to pursue dialogue and avoid further escalation.

On the economic front, the Federal Board of Revenue's (FBR) tax collection reached Rs1,015 billion in January 2026, reflecting a 16% year-on-year increase, though it remained Rs15 billion below the monthly target. Cumulatively, 7MFY26 collections stood at Rs7,176 billion, falling short of the target by Rs345 billion.

Meanwhile, fuel prices for February 1-15 were revised, where high-speed diesel rose to Rs268.38/litre while motor spirit remained unchanged at Rs253.17/litre, he said. Index heavyweights such as United Bank, Engro Holdings, Systems Limited, Fatima Fertiliser, Sazgar Engineering, Oil and Gas Development Company, Hub Power, National Bank and MCB Bank led the advance, contributing a total of 1,137 points, Najib added.

KTrade Securities wrote in its market wrap that the PSX closed higher by 883 points at 185,058. Market participants remained cautious, with KSE-100 volumes standing at 215 million shares, reflecting selective investor interest.

The session opened on a muted note, largely in line with expectations after the rollover week. With February being a shorter month and the Ramazan effect approaching, investors continued to adopt a measured approach, which resulted in range-bound trading and limited activity, it said.

Performance remained stock-specific rather than broad-based as United Bank, Engro Holdings, Systems Limited, Fatima Fertiliser, Sazgar Engineering, OGDC, Hub Power and NBP emerged as key positive contributors. In contrast, Fauji Fertiliser, Lucky Cement and Habib Bank dragged the index down. Looking ahead, the ongoing result season, coupled with persistent geopolitical uncertainties, was likely to keep market sentiment cautious, KTrade added.

JS Global analyst Muhammad Hasan Ather commented that the KSE-100 opened the week on a bullish note, rising by 883 points to close at 185,058. The rebound followed a period of extreme volatility and was primarily driven by easing geopolitical tensions and the State Bank's decision to reduce the Cash Reserve Requirement (CRR), which has unlocked liquidity for private-sector credit. "The trajectory remains positive, with inflation stabilising around 5.8% and an International Monetary Fund-backed reform agenda in place," he said. Topline Securities mentioned that the local bourse witnessed a seesaw session, juggling between cautious holding of positions and selective buying throughout the day. The index dipped to the intra-day low of 1,382 points in the first half before staging a strong recovery. The benchmark closed at 185,058, up 883 points.

Overall trading volumes decreased to 740.1 million shares compared to the previous tally of 805.1 million. The value of shares traded during the day was Rs42.2 billion.

Shares of 487 companies were traded. Of these, 214 closed higher, 222 fell and 51 remained unchanged.

First National Equities was the volume leader with trading in 191.2 milion shares, losing Rs0.12 to close at Rs1.65. It was followed by Hascol Petroleum with 51.5 million shares, falling Rs0.57 to close at Rs25.92 and K-Electric with 38.3 million shares, edging up Rs0.01 to close at Rs7.11. Foreign investors sold shares worth Rs689.2 million, the National Clearing Company reported.