KARACHI: Amid a relative political calm and improved economic outlook, the stock market witnessed an across the board buying spree at attractive valuations, helping the benchmark KSE 100 index staged an impressive rally on Monday.

Ali Najib, Head of Sales at Insight Securities, said it was a clear sky day at PSX as the index floated easily during the trading hours and settled at 114,230, an increase of 983 points or up 0.87 per cent day-on-day.

At first, the benchmark index received some profit-taking but after that selling there was no bumps in the road. Investors did some value-hunting post last week massive selling as blue-chip stocks were available on attractive price levels offering handsome dividend yields.

“Anticipation of 100bps cut in interest rates in the upcoming State Bank of Pakistan’s Monetary Policy Committee, scheduled for Jan 27, expectation of January inflation may land at 3-3.5pc and prospects of better corporate announcements in the forthcoming result season kept the bears at the bay during the trading,” he added.

Topline Securities Ltd said the bulls firmly took control of today’s trading session, propelling the market to impressive gains.

The rally was fuelled by strong buying across sectors, underpinned by optimism over economic indicators and expectations of improved December quarter earnings. Notably, blue-chip stocks and high-volume sectors witnessed heightened investor activity following last week’s market pullback.

Ghandhara Automobiles Ltd from the auto sector continued its upward trajectory, closing at its upper circuit, driven by the successful launch of the new pickup truck, “JAC T9 Hunter,” which garnered sign­i­f­icant attention from investors.

Engro Holdings contributed negatively by up to 275 points to the KSE-100 as shares were transferred to investors today following the merger.

Ahsan Mehanti of Arif Habib Corporation said stocks closed higher led by second and third tier scrips amid speculations in the earning season and progressing government talks with PTI.

He added that surging global crude oil prices and expected cut in the SBP key policy rate announcement this month played a catalyst role in bullish close at PSX.

Key contributors to the upward trajectory included Mari Petroleum, Millat Tractors, United Bank, Service Industries, and Fauji Fertiliser, collectively adding 620 points.

Despite the market’s stro­ng performance, trading activity remained subdued compared to last week. The trading volume rose 4.27pc to 521.20 million shares while the traded value jumped 13.94pc to Rs28.28bn day-on-day.

Published in Dawn, January 14th, 2025