PSX rebounds on investor trust

Index gains 1,900 points, driven by optimism about ME de-escalation

KARACHI:

Following heavy selling a day ago, the Pakistan Stock Exchange (PSX) staged a strong rebound on Tuesday and surged 1,900 points, with improved investor sentiment helping the market regain its footing.

Trading began on a firm note and stayed in the positive territory, signalling renewed confidence among participants. The recovery was driven by key sectors such as auto assemblers, power generation, refineries, cement, commercial banks, oil and gas exploration and oil marketing. Investor sentiment was further supported by easing geopolitical tensions in the Middle East.

Market players cashed in on improving global developments, particularly after Trump indicated that direct talks with a more moderate leadership in Iran were making "significant progress".

During the day, the benchmark KSE-100 index touched the intra-day high of 150,226 and low of 147,744, showing a healthy trading range. The index finally added handsome gains of 1,900.34 points, or 1.29%, and settled at 148,743.32.

"The KSE-100 staged a rebound, rising 1,900 points, as the market finally caught breath after the recent heavy slide," KTrade Securities equity trader Ahmed Sheraz commented. The session opened strong and the positive tone was maintained for almost throughout the day, although some profit-taking emerged in the latter half.

The upside was largely fuelled by a cooling in global oil sentiment after Trump's remarks, which hinted at a potential near-term resolution of the geopolitical conflict. The narrative around avoiding escalation in the Strait of Hormuz helped ease the global risk perception. This translated into slightly firmer US cues and a mixed but stable Asian backdrop, which the PSX absorbed positively, he added.

Market performance was led by blue-chip names, with strong contributions coming from National Bank, Meezan Bank, Lucky Cement, Oil & Gas Development Company, Mari Energies, Habib Bank and Hub Power as buying interest returned to index-heavy sectors. Gains were broad-based, signalling a tentative restoration of confidence.

However, the undertone remained cautious as Brent crude hovered near $107-108 per barrel, while the Consumer Price Index (CPI) reading may trigger rate hike expectations ahead of the State Bank's Monetary Policy Committee meeting, Sheraz said.

JS Global's Mubashir Anis Naviwala observed that the KSE-100 index witnessed a strong recovery during early trading, gaining over 3,000 points intra-day. Investor sentiment improved as value hunting emerged across key sectors. However, profit-taking in the latter half trimmed early gains, leading to a volatile session.

The index eventually settled at 148,743, gaining 1,900 points. Buying interest was observed in select index-heavy stocks, particularly in banking and energy sectors. Overall sentiment showed signs of stabilisation as investors cautiously re-entered the market after recent declines, Naviwala wrote.

"A minor recovery was observed at the PSX as the KSE-100 gained +1.29% day-on-day, with a high of 150.2k," Arif Habib Limited (AHL) commented. A total of 72 shares rose while 27 fell, with Meezan Bank (+2.75%), Fauji Fertiliser (+1.29%) and OGDC (+3.04%) contributing the most to the index gains. On the other side, Habib Bank (-1.43%), Interloop Limited (-5.42%) and Fatima Fertiliser (-2.17%) were the biggest drags on the index.

In corporate news, Lucky Motor, a unit of Lucky Cement (+3.41%), signed a partnership agreement with China's Guangzhou Automobile, an energy vehicle brand. The KSE-100 declined 12.5% on a month-on-month basis and in April the key levels to watch for are 140,000 and 160,000, with 150,000 likely to act as a near-term pivot, AHL concluded.

Overall trading volumes decreased to 435 million shares against Monday's tally of 529.1 million. The value of traded shares stood at Rs22.5 billion.

Shares of 479 companies were traded. Of these, 281 closed higher, 137 fell and 61 remained unchanged. K-Electric was the volume leader with trading in 46.9 million shares, rising Rs0.27 to close at Rs6.89. Foreign investors sold shares worth Rs267.9 million, the National Clearing Company reported.