PSX reclaims 180k level, surges 2,932 points

KSE-100 index advances on easing Gulf situation, optimism about loan refinancing

KARACHI:

Pakistan Stock Exchange (PSX) posted strong gains on Wednesday, with the benchmark KSE-100 index reclaiming the 180,000 level amid broad-based buying supported by global cues and optimism about Pakistan's external financing outlook.

The KSE-100 settled at 180,014.93, higher by 2,931.71 points, or 1.66%, compared to the previous close at 177,083.22. During the day, the index touched the intra-day high of 180,202.39 and the low of 178,512.09.

A robust buying interest was observed in commercial banks, fertiliser, cement, exploration and production (E&P), oil marketing companies, power generation, investment companies and technology stocks. Investor confidence was bolstered by easing geopolitical concerns after US President Donald Trump said his administration had held "very good discussions" with Iran during all-day negotiations on Tuesday, fuelling hopes of an imminent end to the five-month conflict.

The prospect of reduced tensions weighed on international oil prices and lifted equity markets across Asia, encouraging investors to increase their exposure to equities. Market sentiment was further supported by reports that Pakistan had requested China to refinance a $1.3 billion commercial loan, with funding expected later this month once the terms and conditions were finalised. The anticipated inflows strengthened trust in the country's external financial position.

KASB KTrade equity trader Ahmed Sheraz said Wednesday's rally reflected renewed interest in blue-chip stocks, with buying spreading across almost all major sectors after the benchmark index reclaimed the 180,000-point level. Commercial banks, fertiliser, cement, investment companies and oil & gas stocks accounted for most of the gains, where heavyweights including HBL, UBL, Meezan Bank, Engro Holdings, Fauji Fertiliser, MCB, Lucky Cement, Systems Ltd and Hub Power led the advance, signalling renewed institutional participation.

He said the decline in Brent crude prices from around $86 to nearly $78 per barrel overnight also supported sentiment in the wake of easing concerns over imported inflation and external account pressure, thereby improving Pakistan's macroeconomic outlook. Sheraz added that after reclaiming the 180,000 mark, investors were expected to focus on upcoming corporate earnings, macroeconomic indicators and global developments. "While the positive momentum could extend in the coming sessions if institutional buying continues, some profit-taking at higher levels cannot be ruled out."

Arif Habib Limited (AHL) Deputy Head of Trading Ali Najib said the PSX witnessed a strong session, where the KSE-100 regained the 180,000 level at close after a gap of 16 trading sessions, a milestone last seen on July 10. He attributed the rally primarily to a sharp decline in international oil prices, driven by optimism about the resumption of US-Iran talks, which raised hopes of a diplomatic resolution to the ongoing conflict.

Najib noted that reports about Pakistan requesting China to refinance a $1.3 billion commercial loan further lifted investor sentiment. Looking ahead, he said an improving geopolitical situation, lower international oil prices and expectations of continued macroeconomic stability would likely underpin investor confidence, while developments in US-Iran negotiations and the ongoing corporate earnings season would be the key near-term catalysts for market direction.

Cumulatively, trading volumes increased to 740.6 million shares against Tuesday's tally of 711.3 million. The value of traded shares stood at Rs35.9 billion.

In the ready market, stocks of 496 companies were traded. Of these, 303 closed higher, 158 dropped and 35 remained unchanged.

Trust Brokerage was the volume leader with trading in 52.9 million shares, falling Rs0.13 to close at Rs2.46. Foreign investors bought shares worth Rs771.9 million, the National Clearing Company reported.