PSX rallies over 1,300 points as geopolitical tensions ease

Benchmark KSE-100 Index touches an intra-day high of 171,022.94 points, low of 170,250.27 points

KARACHI:

The Pakistan Stock Exchange (PSX) staged a strong recovery on Tuesday, with investor sentiment turning decisively positive after a volatile session a day earlier.

Encouraged by an easing geopolitical environment and renewed risk appetite, market participants aggressively accumulated stocks from the opening bell, driving the benchmark KSE-100 Index sharply higher during intra-day trade.

The benchmark KSE-100 Index touched an intra-day high of 171,022.94 points and a low of 170,250.27 points before settling at 170,330.56, up 1,376.85 points, or 0.81%, from the previous close.

The positive momentum was largely attributed to improving regional developments after Iran and Israel ultimately agreed to halt hostilities despite an initial ceasefire violation. This de-escalation helped calm investor concerns and supported broad-based buying across key sectors.

The market presented healthy activity throughout the session, with commercial banks leading the advance and providing the largest contribution to the benchmark's gains. Significant support also came from cement and power sector stocks, which attracted strong investor interest amid the improved market outlook.

An hourly review of trading activity between 9:34am and 12:49pm indicated that the benchmark index gradually surrendered part of its early gains as investors locked in profits after the sharp initial surge. Despite this pullback, buying interest remained intact, allowing the market to maintain a firmly positive trajectory till the close.

Read: PSX falls 1,525 points amid geopolitical jitters

In a positive session, the KSE-100 Index closed at 170,330 points, gaining 1,376 points (+0.81% DoD) amid broad-based buying across key sectors, KTrade Securities equity trader Ahmed Sheraz wrote.  

Investor sentiment improved during the session following geopolitical developments, as Iran and Israel ultimately agreed to halt hostilities after an initial ceasefire violation, helping ease regional concerns.

Participation remained healthy with commercial banks leading the gains, while cement and power stocks also provided notable support to the benchmark, he said.

Major positive contributions came from United Bank, Hub Power, Habib Limited, Lucky Cement, Meezan Bank, National Bank, and Bank Al Habib. 

Going forward, market sentiment is likely to remain sensitive to the developments in the Middle East, movements in international oil prices, the domestic economy, including upcoming policy announcements and the FY27 budget, Sheraz mentioned.

Overall trading volume increased to 767.4million shares from Monday’s total of 657.9million. The value of traded shares stood at Rs27.1billion.

Shares of 492 companies were traded. Of these 351 stocks closed higher, 104 fell and 37 remained unchanged. TPL Properties continued to lead the volume chart with trading in 56.6million shares, rising Rs1.03 to close at Rs11.31.