PSX soars 1,935 points as ME fears subside

KSE-100 index rebounds sharply, approaches 165k amid improved investor confidence

KARACHI:

Pakistan Stock Exchange (PSX) on Wednesday extended its bullish momentum as investor confidence improved over easing global oil prices and optimism surrounding geopolitical developments in the Middle East.

At the end of trading, the benchmark KSE-100 index registered a jump of 1,934.74 points, or 1.19%, to settle at 164,831.42. The market presented a mix of volatility and caution during the session, moving between the intra-day high of 165,081.70 and the low of 162,895.74.

Investor interest remained visible in automobile assemblers, cement, commercial banks, oil and gas exploration and power generation stocks, helping the market sustain the upward trajectory.

Oil prices slipped nearly 1% after President Trump said the conflict involving Iran could conclude "very quickly." However, investors continued to closely monitor peace negotiations amid lingering concerns over disruptions to Middle Eastern oil supplies.

KTrade Securities' equity trader Ahmed Sheraz wrote that the KSE-100 gained 1,935 points (+1.19%) as selective buying helped the market recover despite subdued activity. Trading volumes were thin with 172 million shares changing hands in the KSE-100 universe, which reflected softer participation as investors largely stayed on sidelines awaiting fresh triggers.

Volumes remained concentrated in a handful of names, where SSGC (25 million), The Bank of Punjab (24 million) and Cnergyico PK (15 million) led the activity. The market lacked strong domestic catalysts, while seasonal slowdown linked to the approaching Eid break further reduced the risk appetite and near-term positioning.

Sector-wise, the rebound was led by commercial banks, fertiliser, exploration & production, oil & gas and technology. Major index support came from Fauji Fertiliser, UBL, Meezan Bank, Engro Holdings, OGDC, Pakistan Petroleum, Hub Power and Systems Ltd, Sheraz said.

According to Arif Habib Limited (AHL), it was a strong session for the KSE-100 with a gain of 1.2% day-on-day to reclaim the 165k level. On the index, 80 shares rose while 16 fell with Fauji Fertiliser (+1.6%), United Bank (+1.74%) and Meezan Bank (+2.52%) contributing the most to the index gains. Pakistan Tobacco (-3.85%), Ghani Glass (-2.31%) and Abbott Laboratories (-1.37%) were the biggest index drags.

Meanwhile, Pakistan's Interior Minister Mohsin Naqvi was in Tehran for the second time in less than a week for talks with Iranian officials. In corporate news, Lucky Motor Corporation was set to officially launch four GAC electric vehicles, AHL mentioned. "The KSE-100 has tested 165k, which is a key level. It is currently 0.46% down week-on-week and remains in a consolidation profile. The US-Iran situation will continue to dictate market direction," it added.

Topline Securities commented that the KSE-100 posted a strong gain of 1,935 points as investor sentiment rebounded sharply. The market experienced significant intra-day movement, with the index reaching the high of 165,082 and the low of 162,896 during the session. "Improved market confidence was largely driven by easing tensions between the United States and Iran, alongside a decline in international oil prices," it said.

Overall trading volumes decreased to 386.4 million shares compared to Tuesday's tally of 391.9 million. The value of traded shares stood at Rs20.1 billion.

Shares of 483 companies were traded. Of these, 302 stocks rose, 141 declined and 40 remained unchanged.

SSGC was the volume leader with trading in 25.3 million shares, gaining Rs0.71 to close at Rs25.93. Foreign investors sold shares worth Rs1.22 billion, the National Clearing Company reported.