PSX tops 167,000 on diplomatic optimism

The Pakistan Stock Exchange (PSX) resumed its bullish momentum on Friday, with the benchmark KSE-100 index gaining over 1,670 points to close near 167,200, supported by strong investor optimism over Pakistan-facilitated talks between the United States and Iran.

The market remained largely positive throughout the session, despite some profit-taking, capping off one of its strongest weekly performances with gains exceeding 11%.

At the close of trading, the KSE-100 index posted an increase of 1,673.87 points, or 1.01%, and settled at 167,191.38.

Arif Habib Limited (AHL) noted that Pakistan's stock market witnessed one of its strongest weekly performances, with the benchmark KSE-100 index posting a remarkable gain of over 11%. On Friday, the index rose by 1.01%, closing at 167,191 points, below the intra-day high of 168,290 as investors engaged in profit-taking following the recent rally.

Despite the dip, market breadth remained positive, with 79 stocks advancing and 21 declining. Major contributors to the index were MCB Bank (+2.41%), The Bank of Punjab (+10%) and Habib Bank (+1.9%), while Meezan Bank (-2.08%), Systems Limited (-7.15%) and Engro Holdings (-0.57%) acted as key drags.

Market sentiment remains cautiously optimistic, as investors look ahead to the peace talks between the US and Iran, which could serve as a significant catalyst if progress is achieved. A favourable outcome may position Pakistan to benefit from improved global sentiment and economic momentum.

In terms of technical outlook, analysts suggest that while risks persist, a recovery could push the KSE-100 index towards the 170,000 level. Meanwhile, immediate support is seen around the 160,000 mark, indicating a relatively stable downside cushion in the near term.

Topline's market review stated that continuing its momentum, the KSE 100 extended gains by 1%, as optimism over talks between the US and Iran continued to dominate investor sentiment. The top positive contribution to the index came from MCB Bank, The Bank of Punjab, UBL, Lucky Cement, OGDC and HBL, as they contributed 616 points.

Traded value-wise, OGDC (Rs2.58 billion), DG Khan Cement (Rs2.3 billion), Maple Leaf Cement (Rs2.28 billion), UBL (Rs2.01 billion) and BOP (Rs1.82 billion) dominated the activity, it said.

The KSE-100 index remained in the positive territory during Friday's trading session with some limited profit taking as optimism surrounding Islamabad-mediated peace talks between Iran and the US supported the bullish sentiment, KTrade Securities commented.

The index closed at 167,191, up 1,674 points (+1.01%), after hitting intra-day high of 168,290 and low of 166,221. The All-share Index traded volume reached 876 million shares. Positive contributions to the index came from MCB, BOP, HBL, UBL and Lucky Cement, while Meezan Bank, Service Industries, Engro Holdings, Interloop Ltd and K-Electric contributed negatively. Sector-wise, the banking sector contributed 552 points, followed by cement (339 points), tech (137 points) and auto (94 points).

Going forward, the market direction will remain contingent on geopolitical developments, particularly the outcome of talks between the US and Iran. Until clarity emerges, a cautious and selective approach is advised, KTrade said.

Overall trading volume was recorded at 876 million shares compared to the previous tally of 889 million. The value of shares traded during the day was Rs46.6 billion.

Shares of 487 companies were traded. Of these, 358 stocks closed higher, 101 fell and 28 remained unchanged.

The Bank of Punjab was the volume leader with trading in 61.2 million shares, gaining Rs2.81 to close at Rs30.87. It was followed by WorldCall Telecom with 56.9 million shares, gaining Rs0.05 to close at Rs1.42 and Sui Southern Gas Company with 56.5 million shares, gaining Rs2.30 to close at Rs25.29.

During the day, foreign investors sold shares worth Rs229.2 million, the National Clearing Company reported.