PSX Sees Mixed Session Amidst Rate Decision and Trade Deal
The PSX's performance is closely tied to the country's economic outlook, with the trade deal with the US expected to have a positive impact on the market. As the market continues to navigate through uncertainties, investors remain cautious, with the State Bank of Pakistan's decision to maintain the benchmark policy rate at 11% being a key factor in shaping market sentiment.
The Pakistan Stock Exchange (PSX) experienced a mixed session on Wednesday, with the KSE-100 index fluctuating between 139,018.88 and 137,658.81 before closing at 138,412.25 with a gain of 447.43 points or 0.32%, aided by late-session buying in bank stocks after the State Bank of Pakistan (SBP) maintained its benchmark policy rate at 11%.
The banking sector saw notable gains, with United Bank, Habib Bank, and MCB Bank leading the charge, while Systems Limited also surged after acquiring British American Tobacco's SAA services. The market sentiment shifted in the latter half of the session, with investors focusing on the potential Pakistan-US trade deal, which is expected to be finalized soon. Corporate news included Engro Fertilisers announcing 1HCY25 earnings per share (EPS) of Rs6.34 (+10% year-on-year) and dividend of Rs6.50 per share.
On Thursday, the PSX saw a bullish momentum, with the benchmark KSE-100 index rising 1,245.74 points or 0.90% to 139,657.99, attributed to investor optimism after the US and Pakistan struck a deal that will result in lower tariffs for the South Asian nation. The deal, announced by US President Donald Trump, involves the US helping develop Pakistan's oil reserves, with Pakistani Prime Minister Shehbaz Sharif terming the trade deal a "win-win" situation for both countries.
Despite the mixed sessions, the PSX has shown resilience, with foreign investors buying shares worth Rs228 million, and the Bank of Punjab leading the volumes chart. However, the market remains susceptible to fluctuations, with concerns over corporate earnings, political noise, and economic uncertainty still prevalent, as evident from the significant decline on Tuesday, where the benchmark KSE-100 index plummeted 1,415 points.