Stocks gain on improving investor confidence

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KARACHI: The Pakis­tan Stock Exchange (PSX) extended its rally on Wednesday, mirroring global market trends and buoyed by easing geopolitical tensions and a sharp uptick in consumer confidence.

Ali Najib, Deputy Head of Trading at Arif Habib Ltd, said the market remained largely range-bound after Tuesday’s historic second-highest single-day gain. The KSE-100 index moved between an intraday high of 123,257 points (up 0.83pc) and a low of 122,169 points (down 0.06pc), eventually closing at 122,762 — up 515 points or 0.42pc.

Bullish momentum continued as investor confidence improved, driven by expectations of economic recovery and favourable macroeconomic signals. A significant boost came from the Pakistan Consumer Confidence Index (CCI), compiled jointly by Dun & Bradstreet and Gallup Pakistan, which rose 9.2pc quarter-on-quarter and 24.6pc year-on-year to reach 96.2 points, indicating improved household outlooks.

Major positive contributions to the benchmark index came from Bank Al-Habib, Habib Bank, Fatima Fertiliser, DG Khan Cement, and National Foods, collectively adding 372 points. On the other hand, profit-taking in Hub Power Company, United Bank, Engro Corporation, Sazgar Engineering, and Mari Petroleum resulted in a cumulative loss of 202 points.

Ahsan Mehanti of Arif Habib Corporation said investor sentiment was further lifted by progress in Israel-Iran ceasefire talks, stronger exports, and recent approvals of $194 million from the World Bank and $350 million from the Asian Development Bank.

He added that surging global equities, discussions over privatisation of state-owned enterprises, a strengthening rupee, and the government’s commitment to managing the circular debt also contributed to the positive trend.

Topline Securities Ltd noted that the market’s continued upward trajectory reflected growing investor confidence.

However, market participation weakened. Traded volume dropped 6.83pc to 749.79 million shares, while traded value fell 25.47pc to Rs28.03bn. WorldCall Telecom Ltd led the volume chart with 102.3 million shares traded.

The KSE-100’s ability to sustain levels above 122,000 points indicates strong market momentum.

Analysts say a stable hold above the 120,000 mark could pave the way for a rally towards 130,000, underpinned by improving macroeconomic indicators and robust investor sentiment.

Published in Dawn, June 26th, 2025

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