$3b Saudi support fuels robust PSX rally

KSE-100 adds nearly 2,900 points over growing investor interest

KARACHI:

Buying momentum continued at the Pakistan Stock Exchange (PSX) on Wednesday as investors reacted positively to Saudi Arabia's commitment of an additional $3 billion in deposits.

Trading commenced on a cheery note and by 9:34am the benchmark KSE-100 index had surged 4,287 points, or 2.59%. The strong move pushed the index above 170,000 within the opening minutes.

Market participants attributed the bullish trend to multiple positive triggers, including fresh financial assistance from Saudi Arabia, improving geopolitical sentiment amid talk of a second round of ceasefire discussions between the United States and Iran, and better-than-expected corporate earnings.

Overall, the combination of external financing, easing regional tensions and strong corporate performance fuelled broad-based buying across key sectors, keeping the market firmly in positive territory. The index touched the intra-day high of 170,640 and low of 168,183 before settling at 168,519.94, up 2,885.10 points, or 1.74%.

"Anticipation of the resumption of US-Iran talks, along with Saudi Arabia's approval of $3 billion for Pakistan and the three-year extension in the existing $5 billion deposits, has boosted investor sentiment," AKD Securities Director Research Mohammed Awais Ashraf told The Express Tribune. Meanwhile, better-than-expected results from UBL, driven by gains on securities' sales and strong deposit growth, supported the market in maintaining its momentum, Ashraf mentioned.

KTrade Securities equity trader Ahmed Sheraz noted that the KSE-100 index closed on a strong note, gaining 2,885 points (+1.74%), as sentiment stayed buoyant through the session despite late profit-taking, which trimmed the intra-day high of nearly 5,000 points. Activity remained robust with volumes clocking in at 600 million shares, reflecting sustained participation across key retail-heavy counters.

The positive momentum was largely underpinned by improving geopolitical signals, particularly renewed optimism around US-Iran negotiations, with Pakistan actively positioning itself as a mediator and the host of upcoming discussions. Further support came from Saudi Arabia's commitment to extend an additional $3 billion deposit, in addition to its earlier support of $5 billion, reinforcing macro stability and boosting investor confidence.

Sector-wise, gains were broad-based, where bank, fertiliser, power, oil & gas and auto stocks led the charge, while selective interest also emerged in cement and industrial names. UBL, Fauji Fertiliser, Hub Power, Meezan Bank, The Bank of Punjab, OGDC and Sazgar Engineering anchored the upward trajectory, Sheraz wrote.

PSX took another strong move higher, which saw the KSE-100 hit 170k intra-day, Arif Habib Limited (AHL) observed. A total of 92 shares rose while seven fell, with UBL (+4.16%), FFC (+1.9%) and Hub Power (+3.92%) contributing the most to the index gains.

UBL announced 1QCY26 earnings per share (EPS) of Rs19.33, down 34% year-on-year and up 62% quarter-on-quarter. Alongside the results, the bank announced a dividend of Rs8/share. Meanwhile, Pakistan announced Saudi Arabia's commitment of $3 billion in additional deposits with disbursement expected in the coming week. Also, negotiating teams from the US and Iran could return to Islamabad this week to resume talks to end the war. AHL noted that support to the index had risen to 165k.

Overall trading volumes increased to 1.21 billion shares compared with Tuesday's tally of 824.5 million. The value of traded shares stood at Rs59.4 billion.

On the ready market, shares of 490 companies were traded. Of these, 370 rose, 83 fell and 37 remained unchanged.

K-Electric was the volume leader with trading in 124.9 million shares, rising Rs0.18 to close at Rs7.77. Foreign investors sold shares worth Rs319 million, the National Clearing Company reported.