Moaaz Manzoor

The Pakistan Stock Exchange recorded a strong weekly performance as improving geopolitical sentiment, fresh liquidity and expectations of monetary easing boosted investor confidence, pushing the benchmark index to another robust close.

The KSE-100 Index rallied over the week and settled at 189,167 points, gaining 4,068 points, or 2.2% week-on-week. Market sentiment remained largely positive throughout the week, supported by easing geopolitical tensions, renewed buying interest and growing expectations of a policy rate cut in the upcoming Monetary Policy Statement on Monday. Supportive macroeconomic signals and improved risk appetite helped sustain the market's upward momentum.

According to Arif Habib Limited, sector-wise contributions to the index were led by Fertilizers, which added 2,157 points, followed by Investment Banks with 877 points, Power with 440 points, Exploration and Production with 299 points, and Insurance with 193 points. On the downside, Banks weighed on the index with a negative contribution of 246 points, while Technology, Textile, Cable and Electric, and Fast-Moving Consumer Goods also posted declines, reflecting selective profit-taking.

On a scrip-wise basis, Fauji Fertilizer Company Limited emerged as the largest positive contributor, adding 1,668 points to the index. It was followed by Engro Holdings with 870 points, Hub Power Company Limited with 409 points, Engro Fertilizers Limited with 263 points, and Fatima Fertilizer Company Limited with 227 points. Meanwhile, index drag came from Habib Bank Limited with 189 points, Systems Limited with 170 points, Pioneer Cement Limited with 165 points, MCB Bank Limited with 100 points, and Bank Al Habib Limited with 52 points.

Market activity improved compared to the previous week. Average daily volumes rose 16.0% week-on-week to 1,139 million shares, while average traded value increased 4.4% to 218 million dollars, indicating stronger participation alongside the market’s upward move.

Sharing his view, Ali Najib, Deputy Head of Trading at Arif Habib Limited, said the PSX recorded another all-time high close, with the KSE-100 Index settling at 189,167 points, up 1,479 points, or 0.79%, on the day. He noted that the market remained range-bound during the morning session but gained momentum later as buying interest intensified, pushing the index above the 189,000 level.

Looking ahead, Arif Habib Limited expects the KSE-100 Index to remain positive in the coming week, supported by expectations of a 75-basis-point rate cut at the upcoming monetary policy meeting and the release of corporate earnings. The brokerage noted that the index is trading at a price-to-earnings ratio of 9.4 times, yielding around 5.3%. Meanwhile, AKD Securities expects positive momentum to continue, citing improving external account conditions, ongoing reforms and expectations of increased foreign portfolio and direct investment inflows.

Credit: INP-WealthPk