Banking and blue-chip stocks drive broad-based buying after two-day decline
ISLAMABAD: Pakistan’s benchmark KSE-100 Index rebounded sharply on Wednesday, gaining 1,767 points as investors returned to heavyweight banking and blue-chip stocks, helping the market recover part of the losses recorded during the previous two trading sessions.
The benchmark index of the Pakistan Stock Exchange (PSX) closed at 175,285 points, up 1.02%, after remaining in positive territory throughout the trading session. The index touched an intraday high of 176,701 points and a low of 173,870 points, reflecting sustained buying interest across key sectors.
The recovery came after recent market volatility that had weighed on investor confidence, with renewed demand emerging for fundamentally strong stocks. Analysts said bargain hunting and improving sentiment encouraged investors to re-enter the market following the recent correction.
The banking sector played a pivotal role in Wednesday’s rally. United Bank Limited (UBL), Engro Holdings (ENGROH), National Bank of Pakistan (NBP), Meezan Bank Limited (MEBL), and Habib Bank Limited (HBL) were the largest contributors to the benchmark’s performance, collectively adding around 906 points to the KSE-100 Index.
Market activity remained healthy despite the recent volatility. Total traded volume reached approximately 583 million shares, while the value of traded shares stood at around Rs26.04 billion, indicating continued investor participation.
The rebound follows two sessions of losses triggered by geopolitical uncertainty and cautious sentiment in regional markets. Investors have continued to monitor developments in the Middle East, global commodity prices and domestic macroeconomic indicators, all of which have influenced trading activity in recent days.
Market participants said Pakistan’s improving macroeconomic outlook continues to provide underlying support for equities, although external risks remain a key factor influencing short-term sentiment.
Looking ahead, analysts expect investors to remain focused on upcoming corporate earnings, economic indicators, monetary policy expectations and global developments for further direction. They said sustained institutional buying and stable macroeconomic conditions could help support the KSE-100 Index in the near term, provided geopolitical tensions do not intensify further.