Key Takeaways
- PSX benchmark KSE-100 index closes in green after a strong rebound.
- Topline Securities reports the index gained 0.85% to close at 169,392.33.
- Selective buying across key sectors contributed to the recovery.
The Pakistan Stock Exchange (PSX) staged a marginal recovery on Tuesday, with the benchmark KSE-100 index closing in the green zone after a strong rebound. The index gained 1,421.67 points, or 0.85%, to close at 169,392.33, recovering part of the previous session’s sharp losses.
According to Topline Securities Ltd, the rebound was driven by selective buying across key sectors, including assemblers, cement, commercial banks, energy and power companies. The index’s recovery followed a 2,541-point decline on Monday, as geopolitical tensions and high oil prices continued to weigh on investor sentiment.
The State Bank of Pakistan maintained its policy rate, and the recent $3 billion Eurobond issuance and improved foreign exchange reserves provided a supportive backdrop. Key contributors to the recovery included United Bank, Fauji Fertiliser, Lucky Cement, Bank Alfalah, and Pakistan Services Ltd, collectively adding approximately 640 points to the benchmark.
Conversely, Meezan Bank, Javedan Corporation Ltd, and Sazgar Engineering Works were the major drags, collectively wiping out 179 points. Ali Najib, Deputy Head of Trading at Arif Habib Ltd (AHL), noted that investors opted for selective buying across these sectors following the status quo in the monetary policy stance being maintained at 11.5%.
On the corporate front, Mughal Iron and Steel Industries Ltd announced its FY26 results, reporting a 2.6-fold year-on-year increase in profit to Rs2,487 million, translating into earnings per share of Rs7.41, compared with Rs966 million (EPS Rs2.88) in the same period last year. The company also announced a dividend of Rs2 per share after a two-year gap, in line with its historical payout of 27%.
However, the fourth-quarter EPS fell 29% year-on-year to Rs1.08. Investor participation weakened sharply as trading volume plunged 34.78% to 372 million shares and total traded value dipped 30.24% to Rs17.1 billion. Cnergyico PK topped the volume chart with 56.2 million shares.
Analysts expect market activity to remain volatile during the ongoing earnings season, with targeted profit-taking and stock-specific moves. Geopolitical developments and rising oil prices will continue to be key factors influencing market direction.
The index rebounded strongly, gaining 1,421.67 points, or 0.85 per cent, to close at 169,392.33, thereby recovering part of the previous session’s sharp losses.
Topline Securities Ltd, Not specified
Investors opted for selective buying across assemblers, cement, commercial banks, E&Ps, refineries, power and OMCs, following the status quo in the monetary policy stance being maintained at 11.5pc.
Ali Najib, Deputy Head of Trading at Arif Habib Ltd (AHL), Not specified
