PSX surges 887 points as oil slides

KSE-100 crosses 181,400 as US-Iran peace hopes fuel bull run

KARACHI:

At the close of trading on Thursday, the benchmark KSE-100 index surged near 890 points to settle at about 181,400. The market maintained strong bullish momentum throughout the session, driven by declining global oil prices and rising hopes for a US-Iran peace agreement following the signing of a memorandum of understanding, with Prime Minister Shehbaz Sharif playing a key mediating role.

At the close of trading, the benchmark KSE-100 index posted a gain of 887.19 points, or 0.49%, and settled at 181,398.22. AHL, in its report, observed that the KSE-100 index continued its upside momentum and closed above the 181,500 level. A total of 52 shares advanced while 46 declined, with HUBC, FFC and SRVI emerging as the major positive contributors to the index gains. On the downside, PSO, PSX and MTL weighed on the benchmark the most.

US President Donald Trump signed a memorandum of understanding with Iran, shifting market focus towards the planned reopening of the Strait of Hormuz and a 60-day negotiating period over Tehran's nuclear programme. Meanwhile, Prime Minister Shehbaz Sharif played a key role as mediator by signing the so-called "Islamabad Memorandum of Understanding".

Heading into the last trading session of the week, the KSE-100 has posted a solid weekly gain of 5.26% and remains on track to test the 183,000 level on Friday. Immediate support for the index is now placed at 177,000 to 179,500. Topline Securities commented that the local bourse witnessed another bullish trading session on Thursday, with investors maintaining a positive stance throughout the day. The benchmark index surged to an intraday high of 1,358 points before settling at 181,398, gaining 887 points or 0.49% on a day-on-day basis.

The upward momentum was primarily fuelled by the continued decline in international crude oil prices, which improved the macroeconomic outlook and strengthened investor confidence. Further supporting sentiment was growing optimism surrounding the anticipated signing of a peace agreement, an MoU between Iran and the US, reportedly scheduled for Friday. The development raised hopes of easing geopolitical tensions in the region, encouraging risk-taking activity and broad-based buying across key sectors.

On the index contribution front, index heavyweights HUBC, SRVI, FFC, ENGROH and PPL emerged as the primary drivers of upside momentum, collectively contributing 679 points to the benchmark's gain.

Market participation – with total traded volume of 1,241 million shares and total traded value amounting to Rs58 billion – reflected strong investor conviction and broad-based market engagement across the board. KOSM emerged as the top volume leader with 230 million shares exchanging hands.

"The buying momentum persisted at PSX," Mubashir Anis Naviwala of JS Global noted. "The benchmark KSE-100 index extended its gains to close at 181,398, up 887 points day-on-day. The index touched an intraday high of 181,869 points, marking another strong performance. Broad-based buying continued across banking, cement, fertiliser and oil and gas stocks. Investor confidence remained firm on improving macroeconomic indicators and positive post-budget sentiment. Trading activity remained healthy, with total market volume reaching 1,242 million shares. The benchmark continued to trade near record highs, reflecting sustained bullish momentum and strong investor participation."

Overall trading volume was recorded at 1.24 billion shares against the previous tally of 1.23 billion. The value of shares traded during the day was Rs58.01 billion. Shares of 495 companies were traded. Of these, 264 stocks closed higher, 201 fell and 30 remained unchanged.

Kohinoor Spinning was the volume leader with trading in 230 million shares, gaining Rs0.50 to close at Rs6.98. It was followed by K-Electric Ltd with 57 million shares, gaining Rs0.08 to close at Rs8.44, and WorldCall Telecom with 56 million shares, gaining Rs0.02 to close at Rs1.31.

Foreign investors sold shares worth Rs81 million, the National Clearing Company reported.