The Pakistan Stock Exchange (PSX) staged a powerful comeback on Monday, with the benchmark KSE-100 Index surging over 7,200 points as easing US-Iran tensions lifted global risk appetite, a sharp retreat in oil prices soothed market concerns and investors grew increasingly confident that the State Bank of Pakistan (SBP) would keep its key policy rate unchanged at 11.5% at its Monetary Policy Committee (MPC) meeting on the day.
The index climbed 7,241.13 points, or 4.23%, to settle at 178,262.34, extending its gains sharply in the latter half of the session as expectations of a status quo monetary policy decision strengthened.
The index had already gained more than 5,000 points in early trading, touching 176,392.61 by midday, before accelerating its advance later in the session. It hit an intraday high of 178,588.34 and a low of 175,153.17.
Buying intensified in the latter half of the session as market expectations firmed that the State Bank of Pakistan (SBP) would keep its policy rate unchanged at 11.5%. Healthy buying activity was seen across key sectors, including automobile assemblers, cement, commercial banks, oil and gas exploration companies, oil marketing companies and power generation.
The sharp rebound followed a bruising previous session and reflected a broader improvement in investor sentiment, as global markets dared to hope that the US-Iran confrontation could be contained and that the immediate threat of further escalation was receding.
Ahmed Sheraz of KASB KTrade said the market staged a broad-based rally that exceeded expectations, as investor sentiment improved sharply following an uneventful weekend in the Middle East.
“With no fresh escalation between the US and Iran and an apparent ceasefire holding, confidence returned to the market,” he said, adding that Brent crude also opened lower and traded near $88 a barrel, easing concerns over energy prices and providing further support to equities.
Gains were broad-based across commercial banks, cement, oil and gas and fertiliser sectors. Major positive contributions came from United Bank, Engro Holdings, Fauji Fertiliser, Meezan Bank, Lucky Cement, Hub Power, Habib Bank and Pakistan Petroleum, as buying interest strengthened across index heavyweights.
Sheraz said the SBP’s decision to keep the policy rate unchanged at 11.5% further supported investor confidence, signalling that recent oil price volatility was unlikely to create sustained inflationary pressure in the near term.
“Looking ahead, the market outlook remains constructive as long as the ceasefire continues and geopolitical tensions remain contained,” he said, while cautioning that developments on the geopolitical front remained a key risk for market direction.
Overall, trading volume increased to 1.03 bilion shares from Friday’s close of 579.9 million. The value of traded shares stood at Rs41 billion. Shares of 496 companies were traded. Of these, 409 stocks rose, 63 closed low and 24 remained unchanged. WorldCall Telecom was the volume leader with trading in 135.9 million shares, rising Rs0.03 to close at Rs1.26.Latest News, Breaking News & Top News Stories | The Express TribuneOur CorrespondentRead More