The Pakistani stock market continued its upward trajectory, overcoming concerns about flooding, with the benchmark KSE-100 Index closing above 156,000 points for the first time on Monday.
Positive sentiment prevailed throughout the session, pushing the index to an intra-day high of 156,199.28 points. At close, the KSE-100 Index was up by 1,810.11 points, or 1.17%, settling at 156,087.30.
Despite the ongoing floods affecting agriculture, investor interest remained strong in sectors linked to reconstruction, particularly cement, with expectations of increased demand for cement in rehabilitation projects.
Sana Tawfik, Head of Research at Arif Habib Limited, noted that investors were optimistic about the government’s policies, especially regarding the State Bank of Pakistan’s (SBP) anticipated decision to maintain the current monetary policy.
The energy sector also saw renewed interest, driven by media reports suggesting progress on resolving the circular debt issue. According to the Bank of Punjab, easing inflationary pressures in August may support the case for a rate cut. However, concerns about rising food inflation due to flood-related damages remain.
Prime Minister Shahbaz Sharif expressed satisfaction with the PSX’s performance, highlighting that it reflected investor confidence in the government’s policies. He also emphasized the recent agreements with Chinese companies, which are expected to drive investment and create jobs.
In the previous week, the KSE-100 Index climbed 3.8% or 5,659 points, marking the fourth-highest weekly close of the year, despite continued foreign selling.
The Pakistani rupee also gained 0.01% against the US dollar, continuing its positive streak for the 22nd consecutive day, closing at 281.62.
Trading volume on the all-share index increased, with shares valued at Rs62.29 billion compared to Rs59.95 billion in the previous session. K-Electric Ltd. led the volume with 93.75 million shares traded.
Sitara Chemical Industries Limited was the top gainer, rising Rs87.75 to close at Rs965.22, while PIA Holding Company Limited-B and Unilever Pakistan Foods Limited were among the laggards.
Shares of 482 companies were traded, with 229 closing higher, 228 lower, and 25 unchanged.
