Foreign institutional investors were net buyers of Rs37.6 million worth of shares during the trading session. PHOTO: AFP
KARACHI:
Stocks staged a sharp rebound on Thursday as easing contract rollover pressure ahead of February futures expiry and renewed institutional buying lifted sentiment, driving the benchmark KSE-100 index up by over 4,260 points.
The rally followed a steep correction during the current month and was led by gains in index heavyweights. Market breadth turned strongly positive, while improving macro signals, including budget relief expectations and progress on 5G auction, further supported investor confidence.
At the close of trading, the benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) posted a robust gain of 4,266.79 points, or 2.59%, and settled at 168,893.09.
Arif Habib Limited (AHL) stated that the market staged a strong rally following sharp declines earlier in the month as the KSE-100 gained 2.6% day-on-day. Market breadth remained firmly positive as 79 shares advanced while 21 declined.
Among index heavyweights, Fauji Fertiliser (+4.53%), Engro Holdings (+5.61%) and Hubco (+5.09%) contributed the most to the benchmark’s gains while Pakistan Tobacco (-7.56%), Unity Foods (-10%) and Nestle (-0.96%) emerged as the biggest drags.
On the macro front, a PM aide indicated that the upcoming budget would be industry- and business-friendly, aimed at providing relief and incentives to the corporate sector. Prime Minister Shehbaz Sharif is also scheduled to visit Russia next week. Meanwhile, Pakistan’s 5G spectrum auction process was progressing, with Jazz, Ufone and Zong having deposited the mandatory $15 million bid security.
AHL noted that the 170,000 level remains a key threshold that the KSE-100 needs to regain and hold in the coming sessions, adding that current levels continue to offer attractive long-term accumulation opportunities for investors.
“Bulls roared back as rollover pressure eased,” Topline Securities observed in its market review. After several sessions under the firm grip of bears, the bulls finally reclaimed control, bringing a welcome shift in sentiment.
The trading day began on a shaky note, with cautious participants extending the weakness and dragging the index to the intra-day low of 1,672 points in the first half amid rollover concerns ahead of February futures expiry.
As the session progressed, the tone changed. Selling pressure eased and buyers returned with renewed confidence, turning a tentative recovery into a broad-based rally. Momentum accelerated in the latter half, pushing the index to an impressive intra-day high of 4,747 points and signalling the bulls’ return to the centre stage. By the close, the benchmark settled at 168,893, gaining 4,267 points. The rebound was largely driven by easing futures rollover pressure as February contracts were close to expiry, allowing participants to rebuild positions with greater clarity and reduced risks.
Index-heavy constituents, including Fauji Fertiliser, Engro Holdings, Hubco, Pakistan Petroleum and HBL, emerged as key gainers, collectively contributing around 1,800 points. Market participation improved, with total traded volumes reaching 692 million shares and traded value clocking in at Rs36 billion, Topline said.
KTrade noted that Thursday’s move reflected a technical and sentiment-driven recovery, where confidence returned across the board. While the session revived optimism and opened the door for further upside, sustainability would hinge on external cues, particularly the Iran-US negotiations and the evolving geopolitical backdrop.
With rollover pressure largely behind and earnings season underway, fundamentally strong stocks that lagged during the recent market decline may gradually regain traction. Caution is warranted ahead of the weekend, but near-term bias has clearly shifted to positive, KTrade added.
Unity Foods was the volume leader with trading in 71 million shares, losing Rs1.32 to close at Rs11.85. Foreign investors sold shares worth Rs1.8 billion, the National Clearing Company reported.
