PSX climbs 1,270 points as policy fears ease

Stock buying gathers pace late in session on growth in Asian equities

KARACHI:

The Pakistan Stock Exchange (PSX) put on an impressive show on Wednesday as the benchmark KSE-100 index staged a strong rally, driven by accelerating purchases in the final hours despite lingering concerns over monetary tightening and rising international oil prices.

The market opened on a steady note and quickly advanced, reaching 164,830.55, up 363.35 points, or 0.22%, within minutes of the opening bell. It touched the intra-day high of 166,100.34 and low of 164,355.83. Investors came back and buying gathered pace late in the session, which helped the KSE-100 index close with notable gains of 1,269.55 points, or 0.77%, at 165,736.76.

Similarly, Asian equities rose on optimism surrounding artificial intelligence demand and ahead of earnings announcements by major US companies. The positive tone in regional markets lent support to investor sentiment, although geopolitical risks continued to cloud the outlook. Oil prices, meanwhile, remained a major concern.

Ahmed Sheraz, equity trader at KASB KTrade, noted that the KSE-100 closed with an increase of 1,270 points (+0.77%) in a broadly positive session, with approximately 183 million shares traded. Buying interest remained widespread, led by commercial banks, fertiliser, automobile and power stocks.

Among major contributors, Fauji Fertiliser led the rally following an attractive Rs18.5/share dividend announcement and its results were broadly in line with expectations. National Bank followed by posting decent earnings, while Hub Power supported the index on the back of a Rs5-per-share payout.

Market sentiment continued to improve after the State Bank's 50-basis-point policy rate hike to 12%, which was lower than expectations. This supported banking stocks, while cyclical sectors also witnessed renewed buying interest, allowing the market to consolidate at higher levels. "However, Brent crude hovering around $115 per barrel remains a key concern, alongside geopolitical uncertainty involving Iran, Israel and the US," Sheraz added.

According to JS Global analyst Nawaz Ali, bullish activity continued at the PSX for the third consecutive session, where the benchmark KSE-100 index gained 1,270 points. Buying interest was driven by investor optimism about a potential easing of geopolitical tensions.

Meanwhile, the corporate results season remained in full swing, with earnings-driven activity also contributing to market momentum. National Bank's better-than-expected results triggered stock buying in the banking sector. "Looking ahead, any positive developments regarding the US-Iran situation that lead to a decline in crude oil prices could further improve investor confidence," Ali stated.

Topline Securities observed that the benchmark index maintained a positive trajectory throughout the session, touching the intra-day high of 1,633 points, while the downside remained limited to 111 points, reflecting sustained buying interest and improved investor sentiment. Overall trading volumes increased to 578 million shares from Tuesday's total of 402 million. The value of traded shares stood at Rs26 billion.

Shares of 496 companies were traded in the ready market. Of these, 269 stocks closed higher, 180 fell and 47 remained unchanged.

Foreign investors sold shares worth Rs624 million, the National Clearing Company reported.