PSX rebounds almost 1,000 points

KSE-100 climbs to 182,242 as US-Iran peace talks ease oil price fears

KARACHI:

The Pakistan Stock Exchange (PSX) rebounded on Friday, gaining over 980 points, as easing geopolitical tensions between the US and Iran lifted investor sentiment and reduced oil price concerns.

The benchmark KSE-100 index rallied as much as 2,218 points intra-day before profit-taking trimmed some of the gains. Trading activity remained healthy with 949 million shares changing hands, while the value of traded shares came in at Rs38.41 billion.

At the close of trading, the KSE-100 index posted a solid gain of 982.10 points, or 0.54%, and settled at 182,241.78.

Arif Habib Limited (AHL) noted that at the close of trading on Friday, the KSE-100 posted gains of 982 points, which helped the index close the week with a reduced 1.7% week-on-week decline.

On Friday, 76 shares rose while 24 fell on the KSE-100, with Meezan Bank (+2.46%), HBL (+1.82%), and UBL (+0.45%) contributing the most to the index gains. On the other hand, Service Industries (-1.64%), Sazgar Engineering (-1.67%), and Sui Northern Gas Pipelines Ltd (-1.65%) were the biggest index drags, it said.

Talks between the US and Iran over a permanent peace deal were continuing, according to an American official, despite clashes that threatened to shatter an already fragile ceasefire. "The index range for the coming week is expected to be 180k-188k," said AHL.

Nawaz Ali of JS Global said the stock market rebounded as the KSE-100 index closed at 182,242, up 982 points, supported by buying at attractive levels. The index rallied 2,218 points, touching the intra-day high of 183,478 before profit-taking pared gains.

Investors were optimistic about the easing of tensions in the Middle East as a result of which international crude oil prices declined. "Moving forward, we advise investors to adopt a 'buy-on-dips' stance, provided the geopolitical situation remains calm," he said.

Topline Securities, in its market review, noted that the KSE-100 rebounded as oil prices eased following indications that the United States and Iran were continuing diplomatic talks despite recent confrontations, improving investor sentiment and reducing concerns over prolonged geopolitical tensions.

The index gained ground to close up 0.54%. The top positive contribution came from the banking sector, where Meezan Bank, UBL, HBL, MCB Bank and Askari Bank cumulatively contributed 548 points.

Traded value-wise, Ghandhara Automobiles (Rs2.74 billion), Ghandhara Industries (Rs1.75 billion), UBL (Rs1.73 billion), Cnergyico Pk (Rs1.33 billion) and Maple Leaf Cement (Rs1.15 billion) dominated activity, said Topline.

Overall trading volumes were recorded at 948.78 million shares compared with the previous session's tally of 982.12 million. The value of shares traded during the day was Rs38.41 billion.

Shares of 495 companies were traded. Of these, 292 stocks closed higher, 169 fell, and 34 remained unchanged.

Cnergyico Pk was the volume leader with trading in 151.75 million shares, gaining Rs0.29 to close at Rs9.69. It was followed by K-Electric with 67.53 million shares, gaining Rs0.16 to close at Rs8.10, and WorldCall Telecom with 51.76 million shares, staying unchanged at Rs1.32.

During the day, foreign investors bought shares worth Rs252.1 million, the National Clearing Company reported.