PSX up 3,683 points on easing geopolitics

KSE-100 index jumps amid hopes of US-Iran dialogue success, China visit buzz

KARACHI:

Pakistan Stock Exchange (PSX) on Thursday staged a broad-based rally as the benchmark KSE-100 index surged over 3,680 points to close above 168,500.

Arif Habib Limited (AHL), in its report, noted that the PSX witnessed a strong bullish session, with the KSE-100 surging 3,683 points, or 2.23%, to end trading at 168,514.

The market opened on a positive note amid reports saying that Pakistan's Army Chief Asim Munir visited Iran to help facilitate efforts for a possible agreement between Iran and the United States. Market confidence also improved on reports that the latest US proposal had narrowed differences between the concerned parties, raising expectations of a potential de-escalation and peace breakthrough.

Investor sentiment was further lifted after the US imposed fresh sanctions on certain Indian entities. In addition, anticipation surrounding Prime Minister Shehbaz Sharif's upcoming visit to China, scheduled for May 23-26, where he is expected to meet President Xi Jinping and Premier Li Qiang, also supported sentiment, said AHL.

Analysts observed that the index moved decisively above the key 160,000 level, indicating continued bullish momentum ahead of Eid holidays. Market activity remained robust, with regular market volumes reaching 729 million shares and traded value at Rs35 billion. Market capitalisation rose to Rs18.66 trillion.

Among the top traded stocks, UBL led with $6.5 million in value, followed by OGDC at $6 million and PPL at $5.2 million, while Pakgen Power, OGDC, and PPL remained active on the volume chart.

Topline Securities commented that bulls stood firm in Thursday's trading session as investor confidence returned strongly to the local bourse, driven by encouraging developments in the ongoing US-Iran negotiations and a decline in international oil prices.

Growing optimism over easing geopolitical tensions lifted overall sentiment, prompting aggressive buying across key sectors. The fall in oil prices, amid expectations of a constructive outcome from the US-Iran talks, further strengthened investor confidence.

The benchmark index remained firmly in the green throughout the session, maintaining a strong upward momentum and touching an impressive intra-day high of 4,037 points before settling at 168,514, registering a robust gain of 3,683 points (+2.23%) at close. The strong recovery reflected renewed optimism and firm bullish conviction among market participants, added Topline.