KARACHI: Better-than-expected inflation reading for February provided a stimulus to the Pakistan Stock Exchange (PSX) to break the four-session losing streak as equity investors resorted to value-hunting, anticipating a more significant rate cut in the upcoming monetary policy review, propelling the benchmark KSE 100 index above 112,000 on Tuesday.

Topline Securities Ltd said after enduring a bearish spell, the bulls made a strong comeback, driving the benchmark index to an intraday high of 890 points and a low of 269 points. By the closing bell, the index settled at 112,743 points, gaining 756 points or 0.68pc day-on-day.

Investor sentiment improved significantly, fuelled by positive economic data as annual inflation continued its downward trajectory, reaching a nearly decade-low of 1.5pc year-on-year in February.

Buying interest in key sectors led the market’s recovery as investors capitalised on recent dips. United Bank, Mari Energies, Fauji Fertiliser, The Searle Company, and Hub Power were among the top contributors, adding 400 points to the index. Additionally, the pharmaceutical sector attracted strong investor interest.

Ahsan Mehanti of Arif Habib Corporation stated that the market recovered as investors considered a decade-low Consumer Price Index (CPI) inflation amid anticipation of continued monetary policy easing.

He noted that the strong earnings outlook for blue-chip banking, fertiliser, and oil stocks, along with government discussions regarding the privatisation of state-owned enterprises, contributed to the bullish sentiments at the PSX.

Ahsan Mehanti of Arif Habib Corporation said the market recovered as investors weighed over a decade-low CPI inflation and further easing monetary policy.

He added that a strong earnings outlook for blue-chip banking, fertiliser and oil scrips and the government deliberations over privatisation of state-owned enterprises fuelled bullish momentum at the PSX.

Despite the positive momentum, overall market activity remained subdued as trading volume fell 0.97pc to 206.85 million shares while the traded value decreased 4.58pc to Rs11.33bn day-on-day.

Published in Dawn, March 5th, 2025