PSX rebounds 546 points on oil price fall

Ends July on positive note; KSE-100 gains 0.31% amid late profit-taking

KARACHI:

Pakistan Stock Exchange (PSX) rebounded on Friday as the benchmark KSE-100 index gained almost 550 points to settle near 176,100, supported by a decline in global oil prices and reports that Pakistan was seeking to reinitiate diplomatic negotiations to ease tensions in the Middle East.

At the close of trading, the KSE-100 posted a rise of 546.13 points, or 0.31%, and settled at 176,094.12.

Topline Securities, in its report, stated that the benchmark index largely traded in positive zone during Friday's trading session and closed up by 0.31%. Investor interest was driven by a fall in global crude oil prices, alongside reports that Pakistan was pushing to reinitiate diplomatic negotiations between the US and Iran aimed at easing war tensions in the Middle East, which helped improve investor sentiment.

The top positive contribution to the index came from Engro Holdings, HBL, Lucky Cement, Bank AL Habib and Askari Bank, as they cumulatively contributed 251 points. Despite the positive close, overall market participation remained subdued, as total volumes stood at 880 million shares, while the traded value hit Rs24.96 billion, Topline said.

Nawaz Ali of JS Global observed that the KSE-100 index settled at 176,094, rising 546 points. During the session, the index climbed to the intra-day high of 177,109 (+1,560 points), but late-session profit-taking ahead of the weekend erased a significant proportion of the gains as investors adopted a more cautious stance. "Looking ahead, we believe the market retains the potential to extend its upward momentum, supported by improving fundamentals and investor interest," he said. "However, the evolving geopolitical landscape will remain the key determinant of market sentiment and could influence the pace and direction of future gains."

Ahmed Sheraz of KASB KTrade noted that the KSE-100 advanced 546 points but trading activity remained moderate, with benchmark volumes standing at 210 million shares. Volume leaders on the KSE-100 were Cnergyico Pk (50 million shares), Pakistan International Bulk Terminal (21 million shares) and K-Electric (14 million shares).

Market performance was mixed beneath the surface. Among individual stocks, Engro Holdings, HBL, Lucky Cement, Bank AL Habib and Askari Bank contributed the most to the index's gains. Sector-wise, commercial banks, investment banks, cement and textile companies provided the strongest positive support, he said.

Oil prices remained broadly stable. Brent crude traded in the $86-87/barrel range for most of the session before rebounding to around $89-90/barrel later in the day. The late recovery in oil prices coincided with some profit-taking in shares during the final trading hour, reflecting the typical Friday risk reduction ahead of the weekend.

"Looking ahead, investors are likely to remain cautious at the start of next week as they monitor geopolitical developments over the weekend, particularly the US-Iran situation," Sheraz said.

Overall trading volumes were recorded at 880.95 million shares compared with the previous session's tally of 711.20 million. The value of shares traded during the day was Rs24.96 billion.

In the ready market, shares of 493 companies were traded. Of these, 273 stocks closed higher, 185 fell and 35 remained unchanged.

Trust Brokerage was the volume leader with trading in 178.80 million shares, gaining Rs0.04 to close at Rs2.57. It was followed by Dadabhoy Cement with 81.74 million shares, losing Rs2.27 to close at Rs20.40 and Cnergyico Pk with 50.46 million shares, gaining Rs0.13 to close at Rs10.74. Foreign investors sold shares worth Rs142 million, the National Clearing Company reported.