PSX stays bullish, nears 173,000

The Pakistan Stock Exchange (PSX) on Thursday maintained its bullish momentum as investor sentiment strengthened amid easing geopolitical tensions in the Middle East, pushing the benchmark KSE-100 index higher by 1,190 points to close just below the 173,000 level.

Strong buying in banking, cement, oil and fertiliser stocks kept the market firmly in positive territory despite mid-session profit-taking that triggered temporary volatility. "Sentiment remained positive throughout the day, with strength emerging from cement, oil & gas, power, and commercial bank stocks, keeping the benchmark comfortably in the green," said Ahmed Sheraz of KASB KTrade.

At the close of trading, the KSE-100 index posted a gain of 1,189.52 points, or 0.69%, and settled at 172,894.28.

Arif Habib Limited (AHL) noted that the Pakistan Stock Exchange extended its gains, with the benchmark KSE-100 index climbing 1,189.5 points to close at 172,894.3 after touching an intra-day high of 173,275. Market sentiment remained upbeat as investors responded positively to easing geopolitical concerns surrounding the Strait of Hormuz and expectations of reduced regional tensions.

According to AHL, the US proposal seeking a moratorium on Iran's uranium enrichment programme and the possible removal of sanctions helped improve investor confidence. Trading activity remained robust at the PSX, with total volumes in the regular market standing at 987 million shares, while traded value came in at Rs52.7 billion ($189.1 million). Market capitalisation increased to Rs19.05 trillion.

Index-heavy stocks provided major support to the rally, with UBL, Fauji Fertiliser Company and Lucky Cement contributing the most gains to the benchmark. UBL rose 1.47%, FFC gained 1.19%, while Lucky Cement advanced 2.27%. On the other hand, Hub Power, MCB Bank and HBL remained the largest drags on the index, declining 1.34%, 1.4% and 0.62%, respectively.

Among top gainers, Pioneer Cement surged 10%, followed by The Searle Company, which rose 4.76%, and Millat Tractors, up 4.14% after the company informed the exchange that it was evaluating electric bike production in Pakistan. AHL noted that the KSE-100 had gained 6.07% week-to-date and remained on track to test the 175,000 level in the near term.

"The local bourse opened on a positive note, carrying forward the bullish momentum from the previous session, as the benchmark index climbed to the intra-day high of 1,569 points," Topline Securities commented in its market review. However, profit-taking during the mid-session triggered volatility, trimming a significant portion of early gains and dragging the index to the intra-day low of 163 points.

Despite the volatile trading pattern, the market displayed notable resilience and settled firmly in positive territory at 172,894, posting a gain of 1,190 points, or 0.69%. Index-heavy stocks, including UBL, FFC, Lucky Cement, OGDC, and Mari Energies, remained the key drivers of the rally, collectively contributing 735 points, Topline said.

Overall trading volumes were recorded at 987 million shares compared with the previous session's tally of 1.2 billion. The value of shares traded during the day was Rs52.7 billion.

Shares of 490 companies were traded. Of these, 290 stocks closed higher, 165 fell, and 35 remained unchanged.

The Bank of Punjab was the volume leader with trading in 86.3 million shares, gaining Rs0.19 to close at Rs36.73. It was followed by First National Equities with 66 million shares, gaining Rs0.03 to close at Rs1.47, and Hascol Petroleum with 44.7 million shares, gaining Rs0.56 to close at Rs23.25. Foreign investors sold shares worth Rs315 million, the National Clearing Company reported.