Benchmark index rebounds as easing crude prices ease inflation concerns and boost buying in blue-chip stocks
The Pakistan Stock Exchange extended gains on Tuesday as the benchmark KSE-100 Index rose 421.57 points, or 0.25%, to close at 171,021.77 points, supported by easing global oil prices and renewed investor interest in key sectors.
The index had closed at 170,600.20 points in the previous session.
During intraday trading, the benchmark touched a high of 171,856.36 points and a low of 170,248.46 points, reflecting moderate volatility amid selective buying activity.
Trading activity and volumes
Market participation remained steady, with total volume recorded at 189.7 million shares and traded value reaching Rs19.64 billion.
Analysts at Topline Securities said the market gained strength as declining international crude oil prices helped ease concerns over inflationary pressures and rising input costs for listed companies.
Key stocks lead gains
Index-heavy stocks played a major role in driving the rally. Contributions came from MCB Bank Limited, Fauji Fertilizer Company Limited, United Bank Limited, Pakistan Telecommunication Company Limited and Oil and Gas Development Company Limited, which collectively added around 460 points to the index.
Investor sentiment improves
Market sentiment remained broadly positive throughout the session, with investors focusing on blue-chip stocks amid expectations of improving macroeconomic stability.
The decline in global crude oil prices supported sentiment by reducing fears of higher energy costs and inflation, particularly in energy-intensive sectors such as banking, fertiliser and oil and gas.
Short-term outlook
Analysts expect volatility to persist in the near term; however, sentiment is likely to remain constructive if global commodity prices remain stable and domestic economic indicators continue to improve.
