KARACHI: The stock market saw a robust rebound on Tuesday, with the benchmark index rising by about 9,700 points as investor sentiment improved following the steep loss of the previous day.
According to regulations, the market was stopped for an hour after a 5.0 per cent spike within few minutes of its launch. Investor sentiment was boosted by US President Donald Trump’s statement that the Middle East crisis was coming to an end.
The benchmark KSE-100 Index jumped by 9,696.97 points, or 6.62 per cent, to close at 156,177.12 points, up from 146,480.15 points recorded in the previous session. The index reached an intraday high of 158,354.13 points, while the lowest level of the day was 155,294.66 points.
Ali Najib, deputy head of trading at Arif Habib Ltd, said the PSX staged a remarkable rebound, marking the second-highest point gain in the history of the exchange.
Trading commenced on a jubilant note as investor sentiment improved sharply following an early morning statement by Trump indicating that the Middle East conflict may be nearing its end. “The optimistic development triggered aggressive buying at the open, pushing the market up by more than 5.0 per cent within minutes, which led to a temporary trading halt in accordance with PSX circuit breaker regulations,” he said.
Once trading resumed after an hour, broad-based buying momentum continued across major sectors, driving the benchmark index to an intraday high of 158,354. However, some profit-taking in the final hour of trading trimmed earlier gains, leading the index to settle at 156,177 by the close.
“[Monday’s] expectation that markets were approaching a ‘peak fear’ phase appears to have played out, as constructive developments on the Middle East front helped restore investor confidence and triggered a strong relief rally, resulting in the second-largest bull run in PSX history [on Tuesday],” said Ali Najib. “Going forward, if geopolitical conditions remain stable, the positive momentum may extend into the next session; however, investors are likely to remain cautious as markets continue to monitor external developments closely.”
The KSE-30 Index also recorded a significant gain, rising by 3,046.55 points, or 6.77 per cent, to close at 48,043.06 points, compared with 44,996.51 points in the last session.
Trading activity remained strong, although volumes slightly declined compared with the previous day. Traded shares in the ready market stood at 486.523 million shares, down from 621.653 million shares. The trading value also decreased to Rs31.217 billion from Rs37.116 billion recorded earlier. Market capitalisation, however, increased to Rs17.579 trillion from Rs16.601 trillion.
Of the 485 companies active during the session, 388 closed in the green, 43 in the red, and 54 remained unchanged, indicating broad-based buying across the market.
The highest increase was recorded in Unilever Pakistan Foods Limited, which rose by Rs1,424.47 to close at Rs25,122.8 per share. Nestle Pakistan Limited followed, gaining Rs185.64 to close at Rs7,899.29 per share.
On the other hand, Al-Abbas Sugar Mills Limited registered a notable decline, falling by Rs58.06 to Rs781.86 per share. Bhanero Textile Mills Limited also dropped by Rs47.2, closing at Rs860 per share.
According to Topline Sales Desk, the local bourse witnessed a powerful comeback as confidence swiftly returned to the market. The bulls charged aggressively from the opening bell, triggering a temporary market halt amid intense buying activity.
The rally followed the State Bank of Pakistan’s (SBP) decision to keep the policy rate unchanged at 10.5 per cent, which reassured investors and revived risk appetite. Sentiment was further lifted by improving global markets, while declining oil prices, after comments from President Donald Trump suggesting the Middle East conflict may ease soon, helped calm fears of prolonged energy supply disruptions.
Index-heavy constituents, FFC, ENGROH, UBL, HUBC and MEBL, emerged as major gainers, collectively adding 3,621 points to the index during the session.
K-Electric Ltd remained the volume leader with 53.265 million shares, which closed higher by 53 paisas to Rs7.73 per share. BO Punjab followed with 38.63 million shares, closing higher by Rs1.83 to Rs27.28 per share.
Other significant turnover stocks included Cnergyico PK, F Nat Equities, Unity Foods Ltd, WorldCall Telecom, Hascol Petrol, Maple Leaf, National Bank XD and Fauji Cement.In the futures market, 316 companies recorded trading, of which 313 increased, 3 declined, and none remained unchanged, reflecting strong buying interest in futures contracts as well.
