KARACHI: Pakistan’s stocks witnessed a robust start to the week, with the benchmark KSE-100 index closing 191 points higher on Monday. The market rallied on optimism surrounding expected monetary inflows from China and Saudi Arabia.
The KSE-100 index, the flagship index of the Pakistan Stock Exchange (PSX), ended the day at 42,047 points, compared to last Friday’s closing of 41,856 points, marking a gain of 191 points. This positive performance was attributed to investor confidence driven by expectations of foreign inflows and attractive valuations in key sectors.
Analysts at Arif Habib Limited highlighted that the PSX began the new week on a strong note, maintaining an upward trajectory throughout the trading session. Investor sentiment was bolstered by reports of potential financial assistance from China and Saudi Arabia, which could provide much-needed stability to Pakistan’s economy. The strong appeal of undervalued stocks further fueled buying activity.
During the session, the third-tier stocks demonstrated respectable trading volumes, reflecting growing interest in smaller market-capitalized companies. Overall, market activity remained robust, although trading volumes dipped slightly. The total traded volume decreased by 19.4%, from 298.1 million shares on the previous day to 240.2 million shares. Similarly, the average traded value saw a minor decline of 0.2%, amounting to USD 24.58 million, compared to USD 24.63 million.
Key sectors driving Monday’s rally included Technology & Communication (+36.9 points), Exploration & Production (E&P) (+31.4 points), Oil Marketing Companies (OMCs) (+23.4 points), Power Generation & Distribution (+21.5 points), and Commercial Banks (+16.8 points).
Among individual stocks, significant contributions to trading volumes came from Worldcall Telecom (WTL), Dewan Farooque Motors (DFML), Hascol Petroleum (HASCOL), Sui Southern Gas Company (SSGC), and TPL Properties (TPLP).
Despite the slight dip in trading volumes, the market displayed resilience, buoyed by optimism over external financial support and improving investor confidence in undervalued stocks. Analysts anticipate continued momentum in the coming sessions as the market remains sensitive to economic developments and global trends.
The PSX’s promising start to the week underscores the growing role of foreign inflows and sectoral performance in shaping market sentiment, with stocks poised to deliver sustained returns in a challenging economic environment.
