PSX rebounds 1,422 points on broad-based buying

Policy rate hold by SBP at 11.5% restores confidence as investors return to key sectors

KARACHI:

The Pakistan Stock Exchange (PSX) staged a strong rebound on Tuesday with the benchmark KSE-100 index gaining 1,421.67 points, or 0.85%, to settle at 169,392.33 as renewed buying across key sectors lifted investor sentiment and pushed the market higher.

The index moved between the intraday high of 169,988.12 and low of 169,189.30, with investors rebuilding positions in major index-heavy stocks and driving a broad recovery across the market.

The rebound was supported by renewed confidence after the State Bank of Pakistan (SBP) decided a day earlier to keep the policy rate unchanged at 11.5%. The decision eased concerns about an unexpected monetary-policy shift and supported interest rate-sensitive stocks.

Buying was seen across automobile assemblers, cement, commercial banks, oil and gas exploration companies, refineries, power generation and oil marketing companies, pointing to widespread participation in the recovery.

The market’s rebound came despite lingering uncertainty surrounding the US-Iran conflict and heightened risks to regional oil supplies. International oil prices rose nearly 2% on Tuesday as concerns over supply disruptions persisted after attacks on Saudi Arabian energy infrastructure left the kingdom’s East-West pipeline offline and cast doubt on efforts to ease shipping risks in the Gulf.

According to Ahmed Sheraz of KASB KTrade, the index closed at 169,392 points, up 1,421 points or 0.85% day-on-day, as the market maintained a positive tone throughout the session. Commercial banks, cement, pharmaceutical, and oil & gas stocks supported the market, reflecting broad-based buying interest across key sectors. Individually, United Bank, Fauji Fertiliser, Lucky Cement and Bank Alfalah remained among the notable positive contributors, helping sustain the index’s upward momentum.

The positive trend was also supported by improving sentiment across global markets, which provided a favourable backdrop for local equities. Overall, the session reflected renewed investor confidence after the SBP decided to keep the policy rate unchanged, with buying extending across multiple sectors rather than remaining concentrated in a few names.

Going forward, the market was likely to remain sensitive to global sentiment, oil prices, and macroeconomic developments. Sustained participation in banks, cement and E&P names could keep the index bias positive, while strong volumes and follow-through buying will be important for the market to extend today’s recovery, Sheraz wrote.

Overall, trading volume decreased to 372 million shares compared with Monday’s tally of 570.4 million. The value of traded shares stood at Rs17.2 billion.

In the ready market, shares of 494 companies were traded. Of these, 280 stocks closed higher, 166 fell, and 48 remained unchanged. Cnergyico Pk was the volume leader, with trading in 56.3 million shares, remaining unchanged at Rs12.81.