The Pakistan Stock Exchange (PSX) experienced a day of dramatic shifts on Monday as the benchmark KSE-100 Index climbed above 110,000 during intra-day trading, marking a significant recovery after early losses.
The session opened with the index shedding over 1,000 points due to selling pressures primarily in the banking sector. However, the market managed to rebound, reaching an intra-day peak of 110,358.85. By mid-afternoon, the index stood at 110,279.02, reflecting a gain of 1,225.07 points or 1.12%.
At the closing bell, the KSE-100 index found itself at an impressive 109,970.4 points, an improvement of 916 points on the previous close. The all share index also an increase of 856 points, closing at 69,584 points.
Investor confidence returned as key sectors, including automobiles, cement, fertilisers, oil exploration, and oil marketing companies, saw renewed interest.
In contrast, the banking sector remained weighed down by uncertainties linked to government measures addressing the Advances to Deposit Ratio (ADR). Market analysts highlighted that investor caution stems from the lack of clarity surrounding potential fiscal changes affecting banking profitability.
The broader positive momentum was attributed to favourable macroeconomic trends, such as a decline in November inflation to 4.9%, and expectations of an imminent rate cut by the central bank. Heavyweight stocks like ENGRO, OGDC, PPL, PSO, and HUBCO were among the top performers, contributing to the upward trend.
The PSX has recently been on a winning streak, driven by strong investor interest and institutional activity. Over the last week, the KSE-100 Index gained 7,696.63 points, marking a 7.6% weekly rise, with robust trading volumes.
