KARACHI: The share market experienced a robust rally on Tuesday, with the KSE-100 index of the Pakistan Stock Exchange (PSX) gaining 616 points, closing at 40,956. The surge comes as investors anticipate favorable outcomes from the upcoming FATF plenary session, which has boosted market sentiment.
Analysts at Arif Habib Limited noted that diminishing concerns over political uncertainty helped shift investor focus to key developments, primarily the FATF session and promising quarterly corporate results. The share market responded positively, adding 717 points at its peak during the trading session, before closing with a net gain of 616 points.
Several sectors made strong contributions to the share market’s performance, led by Oil and Gas Marketing Companies (O&GMCs) and Exploration and Production (E&P) scrips. Cement, Power, and Banking sectors also showed notable gains. Within the banking sector, HBL remained a standout, with investors preferring it over UBL. HBL’s stock price crossed 140 points multiple times throughout the session, reflecting its appeal.
In terms of trading volumes, UNITY Foods emerged as the most traded stock with 77.9 million shares exchanged, followed by HASCOL with 50.6 million shares and Fauji Foods Limited (FFL) with 35.1 million shares. These high-volume scrips significantly boosted share market activity, as total trading volumes jumped by 54% from 319.6 million shares to 492.7 million shares day-on-day. The average traded value on the share market also saw a significant increase, rising by 106% to $101.7 million, up from $49 million in the previous session.
Sector-wise, Cement contributed the most to the share market’s gains with an addition of 110 points, followed by Power (107 points), Banks (91 points), E&P (72 points), and O&GMCs (50 points). Among individual stocks, HUBC added 84 points to the index, while LUCK, MEBL, PPL, and HBL contributed 48, 42, 37, and 30 points, respectively.
On the flip side, a few stocks dragged the share market slightly, including HMB (-7 points), UBL (-5 points), ABOT (-4 points), HGFA (-4 points), and FML (-3 points). However, these minor declines had minimal impact on the overall positive trend in the market.
The share market’s robust performance reflects investor confidence in the forthcoming FATF decision and the strength of quarterly earnings. As investor sentiment remains optimistic, analysts expect this upward momentum to continue, supported by strong volumes and high traded values across key sectors. This performance reinforces the positive outlook for the share market in the coming days as investors remain engaged amid promising developments.
