PSX trims gains as profit-taking limits rally

Index still ends in green, supported by hopes for US-Iran talks, $1b Saudi inflow

KARACHI:

Buyers returned to the Pakistan Stock Exchange (PSX) on Tuesday with notable strength as confidence grew amid optimism about a potential second round of US-Iran talks aimed at resolving the ongoing conflict. Expectations that diplomacy may progress weighed on global oil prices, easing supply concerns and providing a supportive backdrop for equity markets.

Investor interest strengthened after the State Bank of Pakistan confirmed the receipt of $1 billion from Saudi Arabia as the second tranche of $3 billion deposits, which boosted foreign exchange reserves and macroeconomic stability. The rally was broad-based, where strong buying was observed in sectors such as auto assemblers, cement, commercial banks, oil and gas exploration, oil marketing, power generation and refineries. The benchmark KSE-100 index remained firmly positive and hovered around 174,631, up 2,435 points, or 1.41%, at midday. However, profit-taking in the latter half eroded a significant proportion of gains. The index touched the intra-day high of 175,298 and low of 172,838 before settling at 173,155.79, up 959.09 points, or 0.56%, at close.

"Investors are waiting for the outcome of US-Iran talks – whether they reach a deal or not – during this week in Islamabad," AKD Securities Director Research Mohammed Awais Ashraf told The Express Tribune.

He said any positive developments were likely to drive market recovery, particularly given the improved diplomatic status of Pakistan and fully funded external position after receiving $3 billion from Saudi Arabia and issuance of $750 million Eurobond along with current account surplus of $1 billion in March 2026.

Further, inflation was likely to remain at 9.6% in April despite a significant increase in fuel prices due to a moderate rise in food items, which meant the real interest rate was still positive, Ashraf said.

Arif Habib Limited (AHL) observed that strong intra-day gains helped the KSE-100 advance towards 175k before coming off later in the session. It closed up 0.56%. A total of 66 shares rose while 31 fell with UBL (+4.99%), Bank AL Habib (+1.39%) and PSO (+2.22%) being the largest contributors to the index gains. In contrast, NBP (-1.74%), Oil & Gas Development Company (-0.75%) and Cherat Cement (-4.02%) were the biggest index drags.

Pakistan received the final $1 billion tranche from Saudi Arabia, which boosted forex reserves, while the US signalled tentative progress in Iran talks. However, President Trump warned about the conflict if no deal was reached. Besides, Pakistan raised $250 million via the green shoe option, lifting its Eurobond value to $750 million. Global spotlight returned to Islamabad because of US-Iran negotiations, while AHL saw the market's upside at 180k and support at 160-165k.

KTrade Securities, in its report, wrote that the market managed to end trading in positive territory despite an overall mixed session. Early strength supported the KSE-100 index, but gains remained measured amid cautious investor sentiment. The session began on a positive note; however, the momentum gradually faded as the day progressed, reflecting subdued global cues where the US and Asian markets remained mixed to slightly negative. In the latter half, profit-taking emerged while volumes thinned out, indicating a lack of strong follow-through at higher levels, it said.

Activity remained relatively concentrated, with KSE-100 volumes standing at 524 million. Among individual sectors, banks led the upside and acted as primary drivers of the index's performance, where UBL contributed the most. Additional support came from PSO and Attock Refinery, KTrade added.

Overall trading volumes decreased to 1.16 billion shares against Monday's turnover of 1.29 billion. The value of shares traded during the day stood at Rs54.94 billion.

Shares of 489 companies were traded. Of these, 279 rose, 165 declined and 45 remained unchanged.

Cnergyico topped the volumes with trading in 83.7 million shares, rising Rs0.43 to close at Rs8.10. Foreign investors sold shares worth Rs729 million, according to the National Clearing Company.