Banks power PSX rally despite volatility

Index climbs 931 points on support from retail, institutional investors

KARACHI:

Bullish momentum continued to dominate trading at the Pakistan Stock Exchange (PSX) on Wednesday, where the benchmark KSE-100 index advanced a further 931 points, despite some volatility.

Banking and other heavyweight financial stocks set the tone in early dealings as institutional buying in key names helped overcome the initial hesitation. Market participants pointed to improved risk appetite, with banking, fertiliser and select blue-chip sectors contributing significantly to the positive trend. There was volatility too as investors digested mixed macro signals and global cues. Despite that, bulls held firm control, lifting the KSE-100 index above 187,000. At close, the index recorded a gain of 931.34 points, or 0.50%, to settle at 187,832.08. During the day, the bourse hit intra-day high of 188,312 and low of 187,019.

KTrade Securities wrote in its report that the PSX closed on a positive note with the KSE-100 settling at 187,832, up 931 points, as momentum returned to the market. Trading activity improved noticeably as 767 million shares changed hands, which indicated better participation compared to recent sessions.

The uptick in KSE-100 volumes highlighted renewed interest from both retail and institutional investors, signalling a gradual revival of confidence. The session was largely driven by sideboard activity, where volumes were concentrated in select names. Market mood was supported by easing geopolitical concerns, particularly signs of reduced tensions between Iran and the US, with regional players actively working to prevent further escalation. "This reduction in external uncertainty played a key role in restoring the risk appetite," KTrade said.

Topline Securities commented that the KSE-100 concluded the session on a positive note, closing at 187,832, higher by 931 points. Market activity remained volatile throughout the day, with the index reaching the intra-day high of 188,312 and low of 187,019. Support primarily came from gains in index heavyweights, including Meezan Bank, Engro Holdings, National Bank, United Bank and Habib Metropolitan Bank, which added 740 points, it said.

However, the advance was partially offset by losses in Systems Limited, Engro Fertilisers and Pakistan Petroleum, which wiped off 149 points. Overall market participation was robust, with total traded volumes reaching 1,195 million shares, Topline added. "Despite the positive close, sentiment remained mixed intra-day, as the benchmark oscillated between gains and losses before settling higher," commented Arif Habib Limited Deputy Head of Trading Ali Najib.

On the corporate front, MCB Bank announced CY25 earnings per share (EPS) of Rs49.29 (-8% YoY) along with a cash dividend of Rs36 per share, broadly in line with expectations. Interloop reported a strong turnaround, posting 1HFY26 EPS of Rs4.47 (+357% YoY). The recovery was driven by improved gross margins, significantly higher other income, lower finance costs and a reduced effective tax rate, he said.