PSX opens week with 2,082-point surge

Investor interest in banking, energy, cement stocks fuels robust rally

KARACHI:

Bulls stayed firmly in control at the Pakistan Stock Exchange (PSX) on Monday, driving the benchmark KSE-100 index higher by more than 2,000 points as aggressive buying in banking, energy and cement stocks kept the market's upward momentum intact.

The bourse opened in positive territory and extended its gains throughout the session, supported by robust interest in sectors such as commercial banks, cement, auto assemblers, fertiliser, oil and gas exploration firms, oil marketing companies and refineries.

The KSE-100 index settled at 187,454.69 with handsome gains of 2,082.49 points, or 1.12%. During the session, the index touched the intra-day high of 187,546.36 after slipping to the low of 185,910.39, reflecting sustained buying interest.

Analysts attributed the rally to investor optimism about Pakistan's improving macroeconomic outlook, easing monetary conditions and institutional buying in index-heavy sectors, which helped extend the upward momentum at the start of the trading week.

According to KTrade Securities, the KSE-100 index extended its winning streak, closing at 187,455, up 2,082 points (+1.12%). The rally remained broad-based, with strong buying interest in commercial banks, oil & gas and cement stocks. The biggest positive contribution came from Habib Bank, Meezan Bank, NBP, UBL, Lucky Cement, Mari Energies and Fauji Fertiliser, indicating institutional participation in index heavyweights.

Overall, the market continued to draw strength from improving investor sentiment, sustained institutional buying and confidence in the upcoming earnings season and macroeconomic outlook, keeping momentum firmly in favour of the bulls, KTrade noted.

Arif Habib Limited (AHL) wrote that the PSX added another 2k points, closing the gap to the all-time high. Some 69 shares rose and 30 fell with HBL (+4%), Meezan Bank (+1.95%) and NBP (+4.16%) contributing the most to the index gains. In contrast, Askari Bank (-1.03%), Javedan Corp (-1.53%) and Abbott Laboratories (-1.36%) were the biggest index drags.

Meanwhile, AHL mentioned, Islamabad was emerging as the leading venue for the next round of technical negotiations between the United States and Iran, expected to take place on July 11. "With many markets across the globe reaching new highs, Pakistan following the cue is just a matter of time. Support further rises to 185.5k-186k with 190k being the clear upside draw," added AHL.

Topline Securities observed that the local bourse began the week exactly where it left last Friday, with bulls firmly in control as robust buying interest powered another strong session. The KSE-100 index maintained its upward trajectory throughout the day, touching the intra-day high of 2,174 points before closing at 187,455, up 2,082 points (+1.12%).

Investor confidence remained resilient, supported by broad-based buying across key sectors, which helped sustain the market's bullish momentum. "The strong start to the week reflects continued optimism among participants, driving the index to a record close," it said.

Adding to the positive sentiment, international crude oil prices softened, with the US West Texas Intermediate (WTI) benchmark hovering around $68 per barrel, easing concerns over Pakistan's import bill and inflation outlook. Meanwhile, aggressive institutional accumulation further reinforced the rally, allowing the index to extend its record-setting run, added Topline.

Overall trading volumes increased to 888.4 million shares compared with Friday's total of 815.7 million. The value of traded shares stood at Rs49.98 billion.

Shares of 495 companies were traded. Of these, 296 stocks closed higher, 182 dropped and 17 remained unchanged.

TPL Properties topped the volumes chart with trading in 66.8 million shares, rising Rs0.90 to close at Rs12.54. Foreign investors sold shares worth a net Rs283.4 million, the National Clearing Company reported.