Buying frenzy powers PSX up by 3,353 points

Pakistan Stock Exchange (PSX) on Tuesday extended its record-setting rally as investors continued to engage in aggressive buying amid growing confidence in the country's economic outlook and easing geopolitical tensions in the region.

The benchmark KSE-100 index gained 3,353.15 points, or 1.89%, to close at 180,392.98, after touching the intra-day high of 180,503.55 and low of 177,741.47.

Investor sentiment remained upbeat as market participants responded positively to Pakistan's diplomatic efforts aimed at supporting regional peace and stability. Besides, the prospects of softer energy prices eased inflationary concerns and improved the economic outlook for oil-importing nations such as Pakistan, encouraging fresh stock buying. The rally also reflected optimism about improving external-sector indicators and the potential for stronger corporate earnings.

"Broad-based buying was witnessed across banking, cement, fertiliser, oil & gas and power-sector stocks. Investor confidence remained elevated following the post-budget rally and easing geopolitical concerns," commented JS Global analyst Mubashir Anis Naviwala.

KTrade Securities' equity trader Ahmed Sheraz wrote that the KSE-100 index gained 3,353 points (+1.89%) as strong buying interest persisted throughout the session. The benchmark remained firmly in positive territory, supported by broad-based participation across key sectors and continued investor optimism following recent macroeconomic and budget-related developments.

Trading activity remained robust, with KSE-100 volumes reaching 611 million shares. The rally was primarily driven by heavyweight stocks such as United Bank, Engro Holdings, Bank AL Habib, National Bank, Pakistan Petroleum and Meezan Bank, which collectively contributed the largest share to the index gains. Sector-wise, commercial banks, investment banks and oil & gas exploration companies were the key contributors to the market's advance.

Investor sentiment received a lift after the State Bank kept the policy rate unchanged, in line with expectations. Going forward, Sheraz believes that investors are likely to remain focused on inflationary trends, energy prices, other economic indicators and the implementation of FY27 budget measures.

Arif Habib Limited (AHL) observed that the KSE-100 sprinted past 180k with another strong session while building on gains after breaching the 175k mark. A total of 81 shares rose while 19 fell with UBL (+6.16%), Engro Holdings (+3.58%) and Bank AL Habib (+4.75%) contributing the most to the index gains. On the flip side, DG Khan Cement (-1.75%), Javedan Corp (-2.9%) and Interloop Ltd (-1.27%) were the biggest index drags.

Meanwhile, Select Technologies, a wholly owned subsidiary of Air Link Communication (+5.08%), plans an Initial Public Offering (IPO) to sell 88.9 million ordinary shares at a floor price of Rs28 to Rs42. The IPO size is Rs2.49 billion at the floor price and Rs3.73 billion at the cap price. AHL mentioned that the index was up 4.64% week-on-week, with support at 175,000 and the next target at 190,000.

Overall trading volumes jumped to 1.22 billion shares compared to Monday's total of 988.1 million. The value of traded shares stood at Rs70.2 billion.

Shares of 497 companies were traded. Of these, 304 stocks rose, 165 fell and 28 remained unchanged.

Lotte Chemical emerged as the volume leader with trading in 108.1 million shares, edging down Rs0.17 to close at Rs28.52. Foreign investors sold shares worth Rs1.2 billion, the National Clearing Company reported.