By Moaaz Manzoor

The Pakistan Stock Exchange (PSX) staged a strong recovery during the week, as easing geopolitical tensions following a ceasefire triggered aggressive buying and lifted overall market sentiment, reports Wealth Pakistan.

The benchmark KSE-100 Index closed at 167,191 points, registering a sharp week-on-week increase of 11.2%, or 16,793 points. The market remained volatile, touching an intra-week high of 168,290 points and a low of 147,771 points, reflecting a strong rebound from earlier losses.

According to Arif Habib Limited, banks led the index gains with a contribution of 4,613 points, followed by cement (2,436 points), fertilizer (2,063 points), exploration and production (1,634 points), and investment banks (971 points). On the downside, leasing companies marginally weighed on the index with a negative contribution of 0.14 points.

On a scrip-wise basis, Fauji Fertilizer Company emerged as the top contributor with 1,509 points, followed by United Bank Limited (1,012 points), Lucky Cement (956 points), Engro Holdings (887 points), and Habib Bank Limited (834 points). Pakistan General Insurance Company Limited slightly dragged the index by 0.14 points.

Trading activity picked up significantly during the week. Average daily volumes surged 55.5% week-on-week to 765 million shares, while average traded value rose 47.4% to $148.1 million, indicating strong investor participation.

The market gained momentum after a midweek brokered ceasefire, triggering an upper-limit rally and broad-based that finally ended the index’s 10-week bearish streak.

Ali Najib, Deputy Head of Trading at Arif Habib Limited, said the market closed on a positive note, with the KSE-100 Index gaining 1,674 points (1.01% day-on-day) to settle at 167,191.

He said the market maintained a firm upward trajectory throughout the session, supported by easing geopolitical tensions and reinforced by both local and institutional buying.

According to Arif Habib Limited, the KSE-100 Index is currently trading at a price-to-earnings ratio of 8.2x, offering a dividend yield of around 6.2%. Top picks include National Bank of Pakistan, Oil and Gas Development Company, Pakistan Petroleum Limited, Fauji Fertilizer Company, Lucky Cement, Hub Power Company, Pakistan State Oil, and Attock Refinery.

Meanwhile, AKD Securities said that upcoming negotiations in Islamabad would remain a key focus for investors, with any constructive developments likely to drive further upside, particularly given the market’s attractive valuation, with a forward price-to-earnings ratio of 7.1x.

Looking ahead, analysts believe market direction will depend on the outcome of expected talks between US and Iranian delegations in Islamabad, along with the release of March quarter results. A positive outcome could further strengthen investor confidence and sustain market recovery.

Credit: INP-WealthPk