Moaaz Manzoor

The Pakistan Stock Exchange (PSX) closed the week on a strong note, with the benchmark KSE-100 Index rising from 169,865 last week to 171,405, gaining 1,540 points or 0.91 percent week-on-week, as investor sentiment improved following the State Bank of Pakistan’s surprise 50bps policy rate cut announced on Monday, WealthPakistan reported. Sector-wise performance was mixed but broadly supportive of the index.

According to Arif Habib Limited, commercial banks contributed the most to the weekly gains with 1,818 points, followed by investment banks (190 points), technology (72 points), pharmaceuticals (44 points), and fast-moving consumer goods (43 points). These advances were partially offset by declines in exploration and production companies (220 points), oil marketing companies (157 points), fertilizer companies (81 points), miscellaneous companies (68 points), and power companies (62 points).

On a scrip-wise basis, United Bank Limited led the positive contributors with 968 points, followed by Engro Holdings (421 points), National Bank of Pakistan (349 points), Habib Bank Limited (183 points), and Lucky Cement (153 points). On the negative side, Dolmen Housing Limited dragged the index by 241 points, while Oil and Gas Development Company (156 points), Hub Power Company (124 points), Pakistan State Oil (80 points), and Pioneer Cement (74 points) added to the downside pressure. Average trading volumes declined 5.2 percent week-on-week to 980 million shares.

However, the average traded value increased 0.6 percent to USD178 million, indicating selective but value-driven participation. Commenting on the week’s movement, Muhammad Bilal Ejaz, Research Analyst at Ismail Iqbal Securities, told WealthPakistan that the PSX maintained its bullish momentum as the SBP’s surprise rate cut and the USD100 million current account surplus boosted sentiment, pushing the KSE-100 to a record high before mild profit-taking set in.

Meanwhile, Ali Najib, Deputy Head of Trading at Arif Habib Limited, said the market witnessed profit-taking ahead of the roll-over week. The KSE-100 closed at 171,405 points, down 556 points or 0.32 percent after touching an intra-day high of 172,675 points earlier in the session. He added that with roll-over week ahead, increased volatility and some selling pressure can be expected, in line with usual trading patterns.

Looking ahead, AKD Securities expects the KSE-100’s momentum to continue, supported by the successful third tranche disbursement under the EFF and RSF, a monetary easing environment, minimal flood impact, and improved global credit ratings. The brokerage added that the index remains attractively valued at 8.1x earnings with a 6.5 percent dividend yield, with expectations of foreign inflows amid improving relations with the United States and Saudi Arabia, though some volatility may emerge due to upcoming rollovers.

Credit: INP-WealthPk