PSX rallies strongly on positive macros

The Pakistan Stock Exchange (PSX) rallied strongly on Monday, with the KSE-100 index jumping 1,945.50 points, or 1.22%, to close at 161,538.41. The market opened strongly and maintained its upward momentum throughout the session, reaching an intraday high of 161,881.45 and a low of 160,406.43.

Investor confidence returned after last week’s volatility, with renewed buying interest in key sectors – particularly fertilizers, investment banks, oil and gas and cement. Both institutional and retail participation reflected optimism about improving macroeconomic indicators and expectations of policy stability in the near term.

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According to KTrade Securities, the PSX rebounded sharply as investor sentiment strengthened on expectations of positive macroeconomic and political developments, including parliamentary approval of the 27th Constitutional Amendment, the release of the next International Monetary Fund (IMF) tranche and the easing of regional tensions.

Heavyweights such as Engro Corporation, Fauji Fertiliser, Engro Fertiliser, Oil and Gas Development Company, Pakistan Petroleum and Systems Limited led the index’s gains.

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Despite the rally, overall market participation remained moderate. Total trading volume rose slightly to 783.2 million shares from 768.8 million the previous day, with a total value of Rs 36.3 billion.

Shares of 477 companies traded, of which 292 closed higher, 136 declined and 49 remained unchanged. First National Equities led the volume chart with 73.8 million shares, gaining Rs 1.93 to close at Rs 21.22.

KTrade noted that investor sentiment is expected to remain positive, depending on key macroeconomic and political developments in the coming sessions.