KSE-100 snaps 4-session losing streak with 1,345-point gain

Positive momentum returned at the Pakistan Stock Exchange (PSX), with the benchmark KSE-100 Index gaining over 1,345 points on Tuesday.

The KSE-100 witnessed range-bound trading in the first few hours, followed by a strong buying spree that pushed the index to an intra-day high of 113,252.55.

At close, the benchmark index settled at 113,088.48, up by 1,344.95 points or 1.20%.

The increase was primarily driven by LUCK, ENGRO, OGDC, EFERT, and PPL, which together contributed 608 points to the overall gain, brokerage house Topline Securities said in its post-market report.

“With no major triggers in sight, the market is expected to remain range bound over the next few weeks, with potential improvement once the International Monetary Fund (IMF) review is completed in March,” said another brokerage house Intermarket Securities in a note on Tuesday.

“We continue to believe the market remains attractive from a valuation perspective and recommend taking advantage of any dips,” the note added.

On Monday, selling pressure continued at the PSX, as the KSE-100 closed negative for the fourth consecutive session, closing at 111,743.53 amid a lack of fresh positive triggers.

Globally, Asian shares and the dollar steadied on Tuesday, as traders waited on a rate cut in Australia and company earnings in China. In contrast, European shares marked record highs on the prospect of ramping up defence spending to back up any Ukraine peace deal.

The Australian dollar stood near a two-month high ahead of a central bank rate decision due at 0330 GMT.

Markets have priced about an 89% chance of a 25 basis point rate cut.

S&P 500 futures were up 0.2% and European futures were flat in Asia morning trade. Japan’s Nikkei rose 0.3%.

The pan-European STOXX 600 index closed 0.5% higher as a gauge of defence and aerospace stocks surged 4.6% to lifetime peaks, having already more than doubled in value since Russia invaded Ukraine three years ago.

Investors expect earnings in the industry to continue rising strongly. This is driven by a significant surge in defence budgets to meet new security needs – which analysts have dubbed a “supercycle” for the sector.

US markets were closed overnight for a public holiday.

Meanwhile, the Pakistani rupee lowered against the US dollar, depreciating 0.04% in the inter-bank market on Tuesday. At close, the rupee settled at 279.37, a loss of Re0.10 against the greenback.

Volume on the all-share index increased to 545.01 million from 511.19 million recorded in the previous close.

The value of shares rose to Rs20.74 billion from Rs19.64 billion in the previous session.

B.O.Punjab was the volume leader with 200.84 million shares, followed by Power Cement with 25.78 million shares, and WorldCall Telecom with 21.84 million shares.

Shares of 446 companies were traded on Tuesday, of which 255 registered an increase, 139 recorded a fall, while 52 remained unchanged.