PSX is peaking ahead of the political decision

The Pakistan Stock Exchange (PSX) opened the week on Monday with renewed optimism and rose to a record high above 170k, reflecting an extension of the bullish momentum from the previous week. Investors remained somewhat upbeat ahead of the monetary policy announcement later in the day, when the central bank unexpectedly cut its policy rate by 50 basis points.

The rally is largely driven by buying interest in energy stocks alongside expectations of a policy rate cut. The session saw wild swings as the KSE-100 traded between an intraday high of 171,002 and a low of 170,293, indicating active participation.

At the close, the benchmark registered a notable gain of 876.82 points or 0.52% to settle at 170,741.35 points.

In its market, KTrade Securities wrote that the PSX started the week on a strong footing, extending the positive momentum seen in recent sessions. The KSE-100 index gained 877 points to close at 170,741, hitting a fresh all-time high, as sustained buying interest kept the market steady throughout the day.

Sector-wide performance was led by oil and gas, technology and cement stocks. Pakistan Petroleum emerged as the biggest contributor to the rise in the index, while Systems Limited, Maple Leaf Cement, National Bank, United Bank and Oil and Gas Development Company (OGDC) were also notable positive contributors.

Market activity was healthy as the outlook remained constructive, supported by several positive developments, including a 50 basis point interest rate cut to 10.50%, some progress in resolving the energy sector’s cyclical debt and renewed US investment commitment in the Reko Diq mining project, KTrade noted.

Arif Habib Ltd (AHL) Deputy Head of Trading Ali Najib noted that after several unsuccessful attempts, the PSX finally managed to close above the key 170k level, with the KSE-100 ending the session at 170,741, up 877 points.

He pointed out that trading opened at a brisk pace, due to optimism surrounding the resolution of the cyclical debt in the natural gas sector. This development kept energy stocks, particularly Pakistan Petroleum, Sui Southern Gas Company (SSGC), Sui Northern Gas Pipelines Ltd, Mari Energies and OGDC in the spotlight as they enjoyed strong buying interest in the early morning hours.

At one point, the benchmark even crossed the 171 thousand mark. However, taking profits at higher levels limited some of the gains, Najib said. In a major move, the State Bank surprised markets by cutting its policy rate by 50 basis points to 10.5%, contrary to a Bloomberg survey where 40 of 42 economists expected the rate to remain unchanged.

Pakistan Petroleum, Systems Ltd, Maple Leaf Cement, NBP and UBL added a total of 652 points to the index, while Hub Power, Fauji Fertiliser, Engro Fertilisers, Bank AL Habib and SSGC faced gains, shedding 156 points, it added.

JS Global analyst Mubashir Anis Naviwala noted that stocks extended their upward momentum as the KSE-100 closed at 170,741, up 877 points. The index traded choppy but remained firm above the psychological 170 thousand mark.

It said the intraday range remained wide, showing active participation on both sides. Buying interest resurfaced after the midday consolidation, and the late-session rally helped the index close near the day’s highs. “The market outlook remains positive while holding above the 170k support level,” he said.

Total trading volume rose to 905.7 million shares compared to the previous tally of 873 million. The value of traded shares stood at Rs 47.7 billion.

Shares of 486 companies were traded. Of these, 239 closed higher, 202 declined and 45 remained unchanged.

Pakistan International Bulk Terminal topped volumes with 123.3 million shares traded, gaining Rs 1.56 to close at Rs 17.19. It was followed by Hum Network with 39.7 million shares, up Rs 0.23 to close at Rs 15.11 and Fast Cables with 36.3 million shares, higher by Rs 1.77 to close at Rs 26.24.

During the day, foreign investors bought shares worth a net Rs 46.2 million, the National Clearing Company of Pakistan said.