KEY POINTS
- KSE-100 closed at 156,087.30, up 1,810.11 points (1.17%) after an intraday high of 156,199.28
- Cement, energy stocks lead really on expected reconstruction demand, circular-debt resolution.
- SBP decision in focus as easing inflation vs. flood-driven food price risks (weekly SPI +5% YoY).
- Rupee gained for a 22nd straight session, settling at 281.62;
ISLAMABAD: The Pakistan Stock Exchange (PSX) notched another milestone on Monday as the benchmark KSE-100 Index closed above the 156,000 level for the first time, extending its record-breaking rally despite concerns over flood-related damage to the agriculture sector.
The index surged 1,810 points, or 1.17%, to settle at 156,087.30, after touching an intra-day high of 156,199.28, according to PSX trading data.
Sectoral strength
Analysts said the rally was led by cement and energy stocks, with investors betting on post-flood reconstruction demand and renewed progress on resolving the energy sector’s circular debt.
“Anticipated demand for cement in rehabilitation projects is driving strong buying interest,” Sana Tawfik, Head of Research at Arif Habib Limited (AHL), told Business Recorder.
She added that the energy sector also gained traction, “fueled by reports suggesting progress on addressing the long-standing circular debt issue.”
Monetary policy watch
On the monetary front, investors are closely watching the State Bank of Pakistan’s upcoming policy announcement.
“Easing inflationary pressures in August supports a case for a rate cut,” the Bank of Punjab (BoP) noted in its daily insight, but cautioned that flood-related food price spikes could prompt the central bank to hold rates steady.
Early signs of inflationary stress have already appeared, with the weekly Sensitive Price Index (SPI) showing a 5% year-on-year increase, BoP added.
PM endorses market confidence
The Prime Minister’s Office (PMO) said Prime Minister Shehbaz Sharif expressed satisfaction over the PSX milestone, terming it “a reflection of the business community’s and investors’ confidence in the government’s policies.”
Sharif also highlighted that Pakistan recently signed multi-billion-dollar agreements and MoUs with Chinese private companies, which he said would “set up industries, increase exports and create more employment opportunities.”
Market breadth and volumes
Trading volume on the all-share index rose to 1.13 billion shares, up from 1.08 billion in the previous session, while the value of shares traded climbed to Rs 62.29 billion, PSX data showed.
K-Electric Ltd led the volume charts with 93.75 million shares, followed by Bank of Punjab (71.44 million) and Dewan Cement (63.92 million).
Among top gainers, Sitara Chemical Industries jumped Rs 87.75 to Rs 965.22, while Service Industries added Rs 55.36 to Rs 1,410.00.
On the laggard side, PIA Holding Company-B dropped Rs 506.00 to Rs 25,000.00, and Unilever Pakistan Foods shed Rs 90.67 to Rs 32,500.00.
Shares of 482 companies were traded on the bourse, of which 229 advanced, 228 declined, and 25 remained unchanged.
Rupee holds momentum
The Pakistani rupee marked its 22nd consecutive gaining session, appreciating by Rs 0.03 to settle at Rs 281.62 against the US dollar in the interbank market.
Global market context
Globally, equities traded higher in Asia on Monday while the US dollar weakened after weak US labour data reinforced expectations of a Federal Reserve rate cut.
The yen, however, slipped as investors weighed political uncertainty in Japan following the resignation of outgoing Prime Minister Shigeru Ishiba.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.4%, Hong Kong’s Hang Seng gained 0.35%, and China’s blue-chip CSI300 added 0.3%.
The Nikkei surged 1.8%, nearing its record high, while the yen traded at 148.39 per dollar.
US markets ended softer on Friday, with the Dow down 0.5%, the S&P 500 off 0.3%, and the Nasdaq flat.
