KARACHI: In a significant market recovery, the benchmark KSE-100 index surged by 346 points on Tuesday, settling at 47,258, buoyed by easing tensions in neighboring Afghanistan.
The Pakistan Stock Exchange (PSX) witnessed a lift from its previous closing of 46,912, as investor sentiments strengthened amidst regional political developments.
Analysts at Arif Habib Limited reported that the market exhibited robust performance following the alleviation of the immediate impacts from Afghanistan’s situation. “The market traded in the positive zone throughout the day, with notable uplifts across several key sectors,” said a senior analyst at Arif Habib.
The rally was led by contributions from the power, cement, oil, gas, marketing companies (O&GMCs), and technology sectors. The automotive and steel sectors also showed promising performance, adding to the upward momentum.
The PSX’s positive shift comes amid a shorter trading week, which analysts believe helped consolidate gains as selling pressure eased significantly on Tuesday. “With fewer trading days, investors seemed inclined to hold onto their positions rather than sell, betting on further market stability,” the analyst added.
While the banking sector showed only nominal performance amid some profit-booking activities, it did not significantly dampen the overall market spirit. Top traded volumes were led by TPLP with 30.9 million shares, followed by GGL with 16.9 million, and TRG with 14.1 million.
Sector-wise, power utilities were the biggest contributors adding 96 points to the index. The cement sector was also a strong performer, contributing 36 points, followed by O&GMCs, banks, and technology sectors contributing 32, 32, and 23 points respectively.
Despite the overall positive trend, trading volumes slightly decreased by 2 percent from the previous session to 246 million shares. However, the average traded value saw a rise, up 13 percent to reach $69.9 million, indicating a higher per-share transaction value.
Among individual stocks, HUBC was a standout performer, adding 81 points to the index. Other significant contributors included PSO with 23 points, MCB with 16 points, KAPCO with 15 points, and TRG with 13 points. Conversely, BAHL, KTML, FCEPL, PKGS, and HBL were among the few that had a negative impact, slightly pulling down the index.
The upward trajectory in Karachi’s stock market is a positive sign of investor confidence, particularly in the context of improving geopolitical scenarios in the region, which could spell continued growth for Pakistan’s financial markets.