PSX sees moderate profits as the KS-100 closes 440 points up

The Pakistan Stock Exchange (PSX) watched another consolidation day on Wednesday, with the KSE-100 reference index closing at 136,380 points, earning 440 points or 0.32% after oscillation in both directions during the meeting.

Early trade saw mild negativity, with the index hitting a low-raid of 135,543 points-with 397 points (0.29%)-in the midst of profit, noted Ali Najib, the deputy head of the negotiation at Arif Habib Ltd.

Investor optimism was reinforced by Finance Minister Muhammad Aurangzeb for Moody’s, where he underlined basic signs of economic recovery. These included the reduction of inflation, the stable exchange rate, the cuts in policy interest rates, the increase in foreign exchange reserves – now over $ 14 billion – and the boost of remittances and export trends. These indicators have reinforced Pakistan’s case for a possible rating to Moody’s upcoming review.

Among the most important positive contributors were fertilizers and energy reserves, with FFC, Engroh, Efert, PSEL and ATRL, adding a combined 1,162 points to the index. Meanwhile, the banking sector weighed the performance, with UBL, MEBL, MCB, Bahl and BAFL to hit cumulatively 556 points due to persistent sale pressure.

The overall market activity remained sluggish, with the total volume traded in 702 million shares and the turnover of RS32 billions. PIBTL led the volume chart with 90.7 million shares negotiated.

The level of 135,000 is expected to serve as basic support in the short term, supported by strong corporate profits and steady foreign inflows, as noted by Ali Najib. A decisive violation could see the 132,000 index test, where attractive valuations and expectations for further monetary relaxation can rejuvenate investors’ interest and cause fresh market.