Easing tensions lift PSX by over 3,600 points

The Pakistan Stock Exchange (PSX) enjoyed a strong bullish session on Friday as easing geopolitical concerns and renewed institutional buying triggered a broad-based rally, lifting the benchmark KSE-100 index decisively above the 185,000 mark.

Investor sentiment improved after the US president signalled reduced chances of further escalation with Iran, encouraging risk-on positioning across major sectors. The index opened with a sharp gap-up of over 1,000 points and maintained the upward momentum throughout the trading session, led primarily by oil and gas exploration, power, and fertiliser stocks.

Market participants cited sustained local institutional participation as a key driver of the rally, while improving global cues further reinforced confidence. Trading activity remained robust, with volumes and traded value rising significantly from the previous session, reflecting strong participation across the board.

Analysts noted that the market's ability to hold above key technical levels reinforces the positive near-term momentum, keeping higher targets in sight while downside risks appear contained for now.

"Momentum at the Pakistan Stock Exchange strengthened as geopolitical uncertainty eased following the US president's statement indicating reduced chances of escalation in the Middle East, prompting across-the-board buying," said Ali Najib, Deputy Head of Trading at Arif Habib Ltd.

At the close of trading, the benchmark KSE-100 index registered a strong gain of 3,642.50 points, or 2.01%, to settle at 185,098.83.

Arif Habib Limited (AHL) noted that a sweep of the 180,000 level was not required as the PSX opened with a gap-up of over 1,000 points and maintained the upward momentum throughout the session, ultimately closing above 185,000, marking a weekly gain of 0.37%.

Market breadth remained firmly positive, with 89 shares advancing against 11 decliners. Oil and gas heavyweights led the index higher, as OGDC surged 6.75%, Pakistan Petroleum gained 5.96% and Hubco rose 3.16%, collectively contributing the most to index gains. On the downside, Pakistan Oilfields (-0.5%), Pioneer Cement (-0.92%) and Mehmood Textile Mills (-3.22%) emerged as the

key drags.

Separately, Haseeb Waqas Sugar Mills jumped 9.95% amid reports that the company was seeking a buyer, with Bloomberg citing multiple potential buyers having recently visited its factory. AHL highlighted that the KSE-100 successfully held its key support during the week and reversed higher, reinforcing 180,000 as the critical pivot level, while 188,000 remains the upside draw for the coming week.

"Bulls returned to the local bourse as the KSE-100 index rallied to close at 185,099 (up by 2%)," noted Topline Securities in its market review. "This positivity can be attributed to buying by local institutions."

The top positive contribution to the index came from OGDC, Pakistan Petroleum, Hubco, Engro Holdings, Fauji Fertiliser Company, UBL and Meezan Bank as they cumulatively contributed 1,725 points. Traded value-wise, NBP ($22.78 million), OGDC ($22.57 million), Pakistan Petroleum ($22.13 million), PSO ($11.42 million) and Hubco ($8.86 million) dominated the activity, said Topline.

Overall trading volumes in the ready market stood at 959.5 million shares compared with 820.04 million in the previous session. The value of shares traded during the day rose to Rs69.5 billion, up from Rs46 billion previously.

Shares of 482 companies were traded, of which 334 stocks closed higher, 117 declined, and 31 remained unchanged.

Arif Habib Corp topped the volumes chart with 72.96 million shares, gaining Rs1.08 to close at Rs18.21. K-Electric followed with 39.2 million shares, increasing by Rs0.24 to finish trading at Rs6.40. Pakistan International Bulk Terminal recorded trading in 36.2 million shares, gaining Rs0.74 to close at Rs20.93. Foreign investors sold shares worth Rs2.2 billion, the National Clearing Company reported.