PSX rallies 1,200 points after Eid break

The index gained 1,225.99 points, or 0.80 per cent, to close at 153,966.36 points, from the previous close of 152,740.37 points.

The KSE-100 rose to an intraday high of 157,442.68 points at around 9:30am, then declined to an intraday low of 153,382.00 points at 2:36pm, before settling at 153,966.36.

Topline Securities, in a statement, noted that the day began on a “hopeful note, as the local bourse took cues from the buoyant international markets”.

“Easing geopolitical tensions and a dip in global oil prices set the stage for optimism, inviting bulls to charge early into the session,” it said.

It said that the momentum picked up quickly and drove the index to a “strong intraday high of +4,702 points, reflecting renewed confidence across the board”. However, as the day unfolded, the enthusiasm began to fade, it said.

Topline Securities said that the trading activity was “slim — a silent warning that the rally lacked strong hands behind it” despite a “promising start”.

“With volumes failing to support the surge, the market gradually gave up a significant portion of its gains,” it added. It said that despite the index settling with a gain of 1,225 points, it remained “well off its peak”.

“Market activity remained subdued, with total volumes clocking in at 375 million shares, while turnover stood at Rs22.97 billion,” the statement said.

K-Electric Limited (KEL) “dominated the volumes chart, with trading surpassing 35m shares,” Topline Securities said. It should be mentioned that K-Electric appointed a new CEO earlier in the day.

“On the index front, heavyweights ENGROH, Fauji Fertiliser Company, Lucky Cement Limited, Systems Limited, and the Hub Power Company Limited led the charge, collectively contributing +1,184 points,” Topline Securities said.

“Conversely, MCB Bank, National Bank of Pakistan, Sazgar Engineering Works Limited, Kohat Cement Company Limited, and Nestle acted as key laggards, dragging the index down by 237 points,” it added.

Last week, PSX extended its decline for an eighth consecutive week, with KSE-100 closing lower in a holiday-shortened trading period ahead of Eidul Fitr.

The market operated for four sessions during the final week of Ramazan, while the current week was also shortened due to the Pakistan Day holiday on March 23.

Topline Securities Ltd said on Monday that the KSE-100 index declined 0.73pc week-on-week to close at 152,740 points, losing 1,126 points.

The decrease was mainly due to rising geopolitical tensions in the Middle East, particularly the US-Israel conflict with Iran, which drove volatility in global energy prices and eroded investor confidence.

Analysts at Arif Habib Ltd had observed increased volatility throughout last week, driven by ongoing geopolitical uncertainty and selling pressure.

They had expected market direction to remain tied to geopolitical developments and post-Ramazan sentiment.

AKD Securities had said investor confidence would depend on progress in easing regional tensions, energy policy measures and developments related to the International Monetary Fund (IMF) review.

It had also said that any de-escalation in the Middle East conflict could trigger a market rebound, given relatively attractive valuations, with the forward price-to-earnings ratio estimated at 6.6 times.