KARACHI: After several sessions of strong selling pressure, the benchmark index staged a recovery on Monday, ending the Pakistan Stock Exchange’s (PSX) losing run.
Despite the market’s initial decline, there was a rebound due to expectations that geopolitical tensions would lessen as a result of reports that Pakistan was acting as a mediator between the US and Iran.
The benchmark KSE-100 Index rose by 809.1 points, or 0.54 per cent, to close at 151,207.82 points, compared with the previous session’s close of 150,398.71 points.The market outlook appears to have stabilised as indices across the board stayed in the green. The index touched an intraday high of 151,875.02 points, while the session low was recorded at 147,771.36 points.
The KSE-30 Index also strengthened, gaining 245.88 points, or 0.54 per cent, to close at 45,699.24 points, against 45,453.36 points in the previous session.Ali Najib, deputy head of trading at Arif Habib Ltd, said the PSX witnessed a volatile session but had a positive closing, thereby snapping its seven-week Monday losing streak, which had been driven by panic selling amid adverse geopolitical developments over successive weekends.
The benchmark index opened on a subdued note and touched an intra-day low of 147,771 (-2,657 points; -1.76 per cent). However, sentiment improved later in the session following media reports of an ‘Islamabad Accord’, under which Pakistan is reportedly mediating a phased ceasefire between the US and Iran, providing a much-needed boost to investor confidence.
On the stock-specific front, UBL, BAFL, ATRL, POL, NESTLE, CNERGY, BAHL, HMB, PIOC and MEHT emerged as the top laggards, collectively dragging the index down by 764 points. Conversely, ENGROH, PPL, LUCK, HUBC and OGDC attracted buying interest, contributing 667 points to the benchmark.
“Going forward, all eyes remain on the progress of ceasefire efforts, which will be critical in shaping near-term market direction. Any meaningful de-escalation in the Middle East could help stabilise global risk sentiment, ease pressure on commodity prices (particularly oil) and reduce uncertainty across financial markets,” said Najib. “This, in turn, is likely to restore investor confidence, encourage inflows, and support a recovery at the PSX.”
Market breadth turned positive, with 261 advancing stocks against 153 decliners in the ready market. Of the 483 companies active during the session, 69 remained unchanged. Trading activity in terms of volume saw a slight dip compared with the previous session. Shares traded in the ready market fell to 457.211 million from 471.943 million in the prior session. However, traded value climbed to Rs30.876 billion from Rs24.644 billion. Market capitalisation edged up to Rs16.822 trillion from Rs16.725 trillion.
Among the top gainers, PIA Holding Company Limited B advanced by Rs1,452.19 to close at Rs16,000 per share. Rafhan Maize Products Company Limited followed, gaining Rs78.12 to close at Rs8,930.25 per share. On the declining side, Unilever Pakistan Foods Limited fell by Rs212.44 to close at Rs24,955.62 per share. Nestle Pakistan Limited shed Rs76.07 to close at Rs7,601.39 per share.
Muhammad Hasan Ather, an analyst at JS Global, said the KSE-100 Index maintained a steady footing. The market’s resilience is a direct reflection of improving macroeconomic sentiment, specifically the recent $1.2 billion staff-level agreement with the IMF and March’s inflation reading of 7.3 per cent, which has fuelled expectations for monetary easing.
He said that continued interest in index-heavy sectors like banking and energy, though the pace of the rally will likely depend on sustained regional stability and the government’s ability to stick to its reform agenda. “For now, the trend suggests a constructive path for long-term investors,” he said.
Cnergyico PK topped the volume table with 57.956 million shares traded, though it declined by 24 paisas to close at Rs7.21 per share. WorldCall Telecom was another standout, rising 3 paisas to close at Rs1.21 per share on turnover of 30.552 million shares.
Other significant turnover stocks included Pak Refinery, K-Electric Ltd., B.O. Punjab XD, United Bank, Nishat Chun Power, Fauji Cement, Pak Int. Bulk, and TRG Pak Ltd.In the futures market, 312 companies recorded trading activity, of which 228 advanced, 80 declined, and 4 remained unchanged.
