KARACHI: Despite warnings of super floods in Sindh following devastating monsoon rains in Punjab and Khyber Pakhtunkhwa — bringing the rural economy to a halt, disrupting supply chains, and triggering a spike in perishable prices — the Pakistan Stock Exchange (PSX) extended its recovery for a second consecutive session on Monday.
The market defied macroeconomic pressures as investors engaged in selective buying, helping the benchmark KSE-100 index surge by 1,353.34 points, or 0.91 per cent, to close at 149,971.12, according to Topline Securities.
Market sentiment turned sharply positive after Pakistan’s Consumer Price Index (CPI) inflation for August came in at 3pc, down from 4.1pc in July — well below analysts’ expectations. The surprise data revived optimism, spurring buying across several sectors, particularly cement.
Heavyweights such as Fauji Cement Company Ltd, Lucky Cement, Cherat Cement, Maple Leaf Cement, and DG Khan Cement recorded notable gains amid expectations of improved cement sales. Overall, the cement sector led the rally, driven by speculation around infrastructure development and water storage initiatives.
Top contributors to the index included Lucky Cement, Oil and Gas Development Company Ltd, Fauji Cement, Bank Al-Habib, and National Bank of Pakistan, collectively adding 691 points. In contrast, losses in Fauji Fertiliser, Systems Ltd, Packages Ltd, Bank Alfalah, and Highnoon Laboratories shaved off 242 points from the index.
Market activity, however, remained subdued. Overall trading volume declined by 11.85pc to 1.18bn shares, while the traded value fell 6.6pc to Rs48.8bn. The Bank of Punjab led the volume chart with 97.6m shares changing hands.
Ahsan Mehanti of Arif Habib Corporation said the bullish close was supported by positive inflation data and early external debt repayments by the government, which included Rs2.6tr in total payments. Expectations of increased spending on post-flood reconstruction also played a catalytic role in boosting investor confidence.
Ali Najib, Deputy Head of Trading at Arif Habib Ltd, noted that the new month opened on a strong footing, with the index carrying forward its upward momentum.
He highlighted the continued strength in cement stocks, many of which gained between 2.5pc and 7.5pc, driven by renewed discussions around infrastructure and water projects.
Published in Dawn, September 2nd, 2025
