PSX up 2,838 points on renewed risk appetite

KSE-100 index extends rally, climbs 1.62% on US-Iran talk hopes

KARACHI:

Pakistan Stock Exchange (PSX) on Thursday surged almost 2,840 points as renewed risk appetite drove investor interest in making fresh bets. Building on the previous session's rebound, the investors aggressively bought blue-chip stocks amid media reports suggesting a possible resumption of dialogue between the US and Iran, which helped ease geopolitical concerns.

On the corporate front, Lotte Chemical's strong 2QCY26 results, showing earnings per share (EPS) of Rs1.87 (up 192% year-on-year) along with cash dividend of Rs1.50 per share, further fueled the positive momentum. Heavyweight stocks, including Engro Holdings, UBL, Meezan Bank, Hubco, and Lucky Cement, led the charge, collectively contributing 967 points to the index.

At the close of trading, the benchmark KSE-100 index posted strong gains of 2,837.78 points, or 1.62%, and settled at 178,123.57.

Arif Habib Limited (AHL) noted that the PSX extended its gains on renewed risk appetite, with the KSE-100 climbing 2,838 points (+1.62%) to close at 178,124. Building on the previous day's rally, the market maintained its upward momentum as investors continued to strengthen their positions amid media reports indicating a possible resumption of dialogue between the US and Iran, which helped improve the overall risk appetite.

On the corporate front, Lotte Chemical announced its 2QCY26 financial results, reporting an EPS of Rs1.87 (up 192% YoY). The company also declared a cash dividend of Rs1.50 per share, further boosting investor interest. On the index contribution front, Engro Holdings, UBL, Meezan Bank, Hubco, Lucky Cement, Fauji Fertiliser Co, HBL, MCB, Fatima Fertiliser, and NBP attracted strong buying interest, collectively contributing 1,490 points.

Market activity remained relatively stable, with traded volumes hitting 737 million shares and traded value at Rs34.6 billion. "Going forward, the outlook remains intact with all eyes on developments on the geopolitical front. Continued progress in US-Iran negotiations, along with the ongoing corporate earnings season, could provide further support to the market and help sustain the recovery," AHL said.

Topline Securities, in its market review, noted that the KSE-100 index staged a strong recovery, extending Wednesday's rebound as broad-based buying returned to the market. Improved investor sentiment, easing concerns over geopolitical tensions, and renewed interest in blue-chip stocks helped the index recover a significant proportion of the losses recorded earlier this week.

The index closed at 178,124, gaining 2,838 points (+1.62%). It remained firmly in positive territory throughout the session, touching intra-day high of 178,432 and low of 175,672, reflecting sustained buying interest across key sectors. Heavyweight stocks such as Engro Holdings, UBL, Meezan Bank, Hubco, and Lucky Cement emerged as top contributors, collectively adding 967 points to the day's gains, Topline said.

Overall trading volumes were recorded at 736.96 million shares compared with the previous session's tally of 583.80 million. The value of shares traded during the day was Rs34.61 billion.

Shares of 496 companies were traded. Of these, 342 stocks closed higher, 129 fell, and 25 remained unchanged.

Lotte Chemical was the volume leader with trading in 70.09 million shares, losing Rs0.15 to close at Rs30.43. It was followed by TPL Properties with 52.57 million shares, gaining Rs0.64 to close at Rs12.77, and Ittefaq Iron Industries with 35.22 million shares, losing Rs0.45 to close at Rs9.34. Foreign investors bought shares worth Rs2.53 billion, the National Clearing Company reported.