KSE-100 Gains 112 Points in a Range-Bound Session; K-Electric Tops Volume for Second Day
KARACHI —
The Pakistan Stock Exchange (PSX) ended Tuesday slightly higher, with the KSE-100 index adding 112 points after fluctuating within a narrow range throughout the trading session.
Investor sentiment remained cautious ahead of the upcoming federal budget announcement, though cement stocks saw gains fueled by expectations of a real estate package in the budget.
Analysts observed some mid-session pressure stemming from concerns over the absence of an agreement with the International Monetary Fund (IMF) regarding budget targets and subsidies.
For the second consecutive day, K-Electric led trading volumes, with 267 million shares changing hands, following NEPRA’s approval of its multi-year distribution tariff for FY24 to FY30.
Ahsan Mehanti from Arif Habib Corp noted that the market recovered amid pre-budget speculation, with optimism over a real estate package sparking a rally in cement stocks. However, investor worries about IMF disagreements on budgetary goals and currency fluctuations caused intermittent selling pressure. Additionally, government initiatives to enhance tax collection in efforts to reduce the fiscal deficit supported the positive close.
The benchmark KSE-100 index rose by 111.79 points, or 0.09%, closing at 118,332.91.
Topline Securities described the day as range-bound, with the index moving within a narrow band due to rollover pressure and budget uncertainty. The intraday high was 587 points and the low was 77 points before settling at a 112-point gain at 118,333.
Topline highlighted that gains were mainly driven by Meezan Bank, Systems Limited, Pakgen Power, Pakistan Petroleum, and DG Khan Cement, collectively adding 223 points to the index.
Arif Habib Limited (AHL) described the session as largely flat ahead of the May 28 holiday. Out of traded shares, 48 advanced, 50 declined. Major contributors to gains included Meezan Bank (+1.61%), Systems Limited (+1.22%), and Pakgen Power (+6.77%), while UBL (-1.78%), Hub Power (-0.82%), and Pakistan Services (-3.5%) were among the biggest laggards.
AHL also reported that headline inflation for May 2025 is expected to rise to 3.04% year-on-year, up from 0.3% in April but still well below the 11.8% recorded in May 2024. The significant moderation reflects a strong base effect and easing inflation pressures, particularly in food and transport sectors.
The cement sector stood out, with Flying Cement (+10%), Dewan Cement (+8.29%), and DG Khan Cement (+3.23%) leading gains. AHL commented that the market seems to be waiting for a positive catalyst to sustain a move beyond 120,000 points.
Analyst Ali Najib said, “Consolidation continues ahead of the budget,” adding that the PSX had a steady session as the KSE-100 index fluctuated within a tight range and finished flat at 118,333, marking a 112-point rise. He noted that investors are expected to remain cautious amid ongoing macroeconomic uncertainties.
Trading volumes rose to 690.4 million shares compared to 635.5 million on Monday, with a total traded value of Rs23.8 billion.
A total of 459 companies traded shares, with 211 closing higher, 210 lower, and 38 unchanged.
K-Electric was the top volume stock, trading 267.6 million shares and closing up Rs0.17 at Rs5.89. It was followed by WorldCall Telecom with 31.6 million shares, gaining Rs0.03 to close at Rs1.30, and PTCL with 20 million shares, rising Rs0.21 to Rs24.28.
According to the National Clearing Company, foreign investors sold shares worth Rs876.7 million during the day.
