Shares at PSX climb 900 points on strong corporate results from heavyweights

Bulls took control of the trade floor on Monday as shares at the Pakistan Stock Exchange (PSX) climbed more than 900 points in intraday trade after a week of volatility.

The benchmark KSE-100 index climbed by 941.79 points, or 0.82 per cent, to stand at 116,411.13 from the previous close of 115,469.34 at 10:05am.

Awais Ashraf, director research at AKD Securities, said, “Stronger-than-expected corporate results from heavyweight companies fuelled a surge in the index at the opening.”

“Meanwhile, the absence of further escalation in tensions between Pakistan and India helped prevent panic selling in the KSE-100,” he added.

Yousuf M. Farooq, director research at Chase Securities, noted that the country’s monthly current account remained “in a comfortable position”, in addition to corporations “posting strong profits”.

In other positive developments, Farooq added that inflation was at a record low, and the real effective exchange rate (REER) stood at 101.

“The market opened slightly higher today, supported by relief that no major escalation occurred between India and Pakistan over the weekend [following the Pahalgam attack],” he added.

“With most market participants expecting interest rate cuts ahead, there is potential for a rerating of the market’s PE [price-to-earning] multiple,” he said.

“However, a significant upward move will likely require de-escalation between India and Pakistan.”

Mohammed Sohail, chief executive of Topline Securities, also attributed the positive momentum to “dust settling down” between Pakistan and India after the Pahalgam attack, with “no major incidents” supporting market recovery.

AKD Securities noted that the market had remained volatile last week due to escalating geopolitical tensions following the Pahalgam attack, and India’s subsequent suspension of the Indus Waters Treaty with Pakistan in the aftermath of the incident, undermining investor sentiment.