Stocks gain 7,033 points in second largest rally

KARACHI: A day after witnessing one of its sharpest declines, the Pakistan Stock Exchange (PSX) recorded a strong bullish comeback on Tuesday. The benchmark KSE-100 index posted its second-highest single-day gain, adding 7,033 points to close at 165,476.

The top three single-day gains have occurred within the last six months, reflecting sustained investor optimism and improving market confidence, analysts said. “Following a sharp correction of nearly 9.3 per cent over the past seven sessions, the bulls made a strong comeback at the PSX as the KSE-100 index surged by 7,032 points, or 4.44 per cent, to close at 165,476 — the second-largest single-day gain in the index’s history,” said Ali Najib, deputy head of trading at Arif Habib Ltd, in a LinkedIn post on Tuesday.

The highest index of the day remained at 165,866.78 points, while the lowest level was recorded at 160,821.73 points.The KSE-30 index closed lower by 2,294.5 points, or 4.71 per cent, to 51,034.76 points from 48,740.26 points.

Najib said the rebound was driven by “restored calm on the domestic political front” after the conclusion of a religious party’s protest, as well as “easing geopolitical tensions and a correction in international oil prices — a welcome development for Pakistan’s economy, being a net oil importer.”

Looking ahead, Najib shared that with the rebound, “the KSE-100 has re-entered its consolidation band between 165,000 and 170,000 — a crucial range that will determine the market’s next directional move.” He added that “all eyes are now set on the intraday all-time high of 169,988, recorded on October 3, which stands as a key resistance level.”

The highest increase was recorded in Ismail Industries Limited, which rose by Rs133.17 to Rs2,133.17 per share, followed by Hoechst Pakistan Limited, which increased by Rs101.41 to Rs4,010.24 per share. A significant decline was noted in Supernet Technologies Limited, which fell by Rs94.52 to Rs1,934.40 per share. Hafiz Limited followed it, which closed lower by Rs28.97 to Rs311.87 per share.

Analyst Maaz Mulla at Topline Securities said that after Monday’s bloodbath, the bulls staged a powerful comeback, propelling the benchmark KSE-100 index to post its second-highest single-day gain ever. Remarkably, all three of the market’s top single-day advances have occurred within the last six months, a clear reflection of sustained investor optimism and improving market confidence.

He said the sharp rebound was driven by a swift normalisation in the law-and-order situation after nationwide protests were called off, restoring calm to the trading floor. Adding further momentum, positive remarks on Pakistan by US President Donald Trump lifted sentiment, reinforcing expectations of better geopolitical ties and renewed foreign interest.

Heavyweights including LUCK, UBL, SYS, ENGRO, HUBC and MARI led the rally, collectively contributing 2,645 points to the index.BO Punjab remained the volume leader with 100.722 million shares, which closed higher by Rs2.85 to Rs34.63 per share. PTCL with 79.832 million shares, followed it, which closed higher by 41 paisas to Rs37.05 per share.

Other significant turnover stocks included Pace (Pak) Ltd, K-Electric Ltd, WorldCall Telecom, Cnergyico PK, Telecard Limited, Wasl Mobility Mod, F Nat Equities and Pak Elektron. In the futures market, 348 companies recorded trading, 333 of which increased, 14 decreased, and one remained unchanged.