KARACHI:
Pakistan Stock Exchange (PSX) rebounded on Wednesday as institutional investors returned to buy select stocks following recent weakness, while expectations of progress in diplomatic efforts to ease US-Iran tensions helped improve sentiment.
The session commenced on a relatively healthy note and the KSE-100 index hit 165,845.69, up 694 points by 9.33 am. Adding to the positive tone, a committee reviewing Pakistan’s Automotive and Auto Parts Manufacturing Policy 2026-31 proposed a broad set of reforms to boost exports, including preferential sales tax rates for new energy vehicles (NEVs), covering both locally assembled and imported cars.
The bourse touched the intra-day high of 166,242.43 and low of 164,731.91 while mostly trading in the green. At close, the benchmark KSE-100 index posted gains of 779.34 points, or 0.47%, and settled at 165,930.99.
According to KTrade Securities, the KSE-100 rose 779 points (+0.5%), a partial recovery with subdued trading volumes of 130 million shares. Activity remained concentrated in refinery, investment companies and securities, and technology and communication sectors, while selective buying in power generation, commercial banks and oil and gas exploration stocks provided support.
Sector-specific performance was positive, where commercial banks, power, cement and autos contributed to the index’s gains. However, weakness in Attock Refinery, Fatima Fertiliser, Engro Holdings, Fauji Cement and Millat Tractors partially offset the advance. Meanwhile, Brent crude remained elevated at $110/barrel, causing macroeconomic uncertainty and tempering the risk appetite.
“We expect the market to remain range bound amid cautious investor sentiment, with near-term direction driven by oil-price movements, geopolitical developments and corporate earnings,” KTrade wrote.
“The market gained momentum amid renewed institutional buying, driven by optimism over intensified diplomatic efforts to resolve the US-Iran conflict and expectations of easing geopolitical tensions. Additionally, the prime minister’s approval of the draft auto policy for 2026-31 brought auto stocks back into investors’ focus,” Arif Habib Limited Deputy Head of Trading Ali Najib wrote. The proposed auto policy aims to boost automotive exports to $6 billion through tariff rationalisation, localisation and EV incentives. The draft also envisages export-linked incentives and stricter safety standards, subject to requisite approvals. Hub Power, Habib Bank, UBL, OGDC, Mari Energies, PPL, Fauji Fertiliser, Sazgar Engineering, Lucky Cement and NCPL were the major contributors, adding 711 points to the index.
Overall trading volumes decreased to 379.9 million shares from 446.8 million a day ago. The value of traded shares stood at Rs21.3 billion.
