Stocks on the Pakistan Stock Exchange staged a partial recovery on Wednesday, climbing 779.35 points or 0.47 percent to close at 165,930.99 after two consecutive sessions of losses. Dawn reported that selective buying at lower levels lifted the benchmark index from an intraday low of 164,732.
KSE-100 Index Gains as Auto Sector Rallies
- The KSE-100 index gained 779.35 points, closing at 165,930.99 amid selective institutional buying at lower support levels.
- Auto sector equities rallied on optimism surrounding the proposed draft Auto Policy 2026-31, while refinery stocks faced pressure from a government crack spread reduction.
- Trading volume declined 14.98 percent to 379.9 million shares, even as total market turnover rose 9.54 percent to Rs21.2bn.
Selective Institutional Buying Lifts KSE-100
The benchmark index traded between an intraday low of 164,732 and a high of 166,242 during the session, according to data from Topline Securities Ltd. The rebound followed recent selling pressure that had pushed the market downward across consecutive sessions.
Major heavyweights drove the recovery. United Bank, Hub Power, Habib Bank, Oil and Gas Development Company, and Mari Energies collectively added approximately 493 points to the index. Despite the gains, the broader market recovery remained measured amid macroeconomic uncertainty, elevated international oil prices, and persistent geopolitical concerns.
Draft Auto Policy Revives Sector Momentum
Automotive equities outperformed during the session, drawing strong investor interest following optimism over the new draft Auto Policy 2026-31. Ali Najib, Deputy Head of Trading at Arif Habib Ltd, noted that market momentum also drew support from institutional buying fuelled by diplomatic efforts to resolve the US-Iran conflict.
The proposed five-year roadmap for the automotive sector targets $6bn in exports through tariff rationalization, localization, and EV incentives. The draft incorporates export-linked incentives and stricter safety standards, though implementation remains subject to required approvals, including clearance from the International Monetary Fund.
Government Reduces Diesel Crack Spread for Refineries
While the broader market ticked upward, the refinery sector faced ongoing earnings pressure. The government recently reduced the high-speed diesel crack spread from $41.89 to $38 per barrel for a three-month duration.
Market activity showed mixed signals as trading volume dipped 14.98 percent to 379.9 million shares. In contrast, total turnover increased 9.54 percent to reach Rs21.2bn. Pakistan Refinery led the volume chart, recording 49.4 million shares traded during the session.
Disclaimer: The information provided in this article is for educational and informational purposes only and does not constitute financial advice.
