PSX extends rally despite geopolitical jitters

Investors show interest in banks, energy and fertiliser stocks, pushing KSE-100 higher by 1,762 points

KARACHI:

Pakistan Stock Exchange (PSX) extended its winning streak on Thursday as investors looked beyond lingering concerns over volatile oil prices and the fragile regional peace situation, betting instead on improving market sentiment and selective buying in heavyweight stocks.

The bourse opened on a firm footing and wasted little time in building momentum, with buying interest accelerating during early trade. Although some profit-taking emerged after the KSE-100 index crossed the 182,000-point mark, it failed to derail the rally. The benchmark index surged 1,761.66 points, or 0.98%, to settle at 181,776.60 after oscillating between the intra-day high of 182,007.04 and the low of 180,626.93.

Broad-based buying was observed in auto assemblers, cement, chemical, oil marketing companies, commercial banks, fertiliser, oil & gas exploration and power generation stocks, helping the market maintain its upward trajectory. Despite the strong close, investors remained mindful of external risks, including uncertainty surrounding global oil prices and the evolving geopolitical landscape.

KTrade Securities observed that it was a broad-based rally, with buying interest visible across nearly all major sectors. Commercial banks, oil and gas, cement, fertiliser, and power generation and distribution stocks led the advance, where heavyweight names including UBL, Mari Energies, Fauji Fertiliser, Bank AL Habib, Lucky Cement, Engro Holdings, Maple Leaf Cement and Hub Power drove the benchmark higher, reflecting renewed institutional participation in blue-chip stocks.

The brokerage house said investors also drew support from relatively stable global energy prices as Brent crude hovered around $80 per barrel, alongside positive regional developments, including an agreement between Pakistan and Iran to keep border crossings open round the clock to facilitate trade and reports of diplomatic talks involving Iran and Oman.

Looking ahead, KTrade expected investors to focus on upcoming corporate earnings, macroeconomic developments and the international news flow. "If the positive momentum and institutional buying continue, the KSE-100 could extend gains in the coming sessions, although some profit-taking at higher levels is likely."

"Bulls remained firm in their positions with easing geopolitical tensions, which fuelled investor interest. The KSE-100 closed up by 1,762 points," JS Global analyst Nawaz Ali commented. Market optimism was driven by signs of de-escalating tensions between the US and Iran amid expectations of an agreement. "Going forward, the PSX is expected to maintain its positive momentum, supported by improving sentiment and sustained buying interest. However, investors are advised to consider booking partial profits at higher levels," he said.

Arif Habib Limited (AHL) Deputy Head of Trading Ali Najib said the market remained buoyant throughout Thursday's session as investors continued to build positions over further easing of geopolitical tensions. Optimism about the reopening of the Strait of Hormuz kept global oil prices under pressure, supporting overall market sentiment.

Meanwhile, Faysal Bank reported a profit after tax (PAT) of Rs5 billion (EPS: Rs3.30) for the second quarter of CY26, broadly flat year-on-year, and announced an interim cash dividend of Rs1.5 per share. Meezan Bank posted PAT of Rs25.8 billion (EPS: Rs14.32), up 5% year-on-year, along with an interim dividend of Rs8 per share, while MCB reported PAT of Rs14.9 billion (EPS: Rs12.54), an increase of 2% year-on-year, and declared an interim dividend of Rs9 per share, AHL added.

Cumulatively, trading volumes increased to 793.4 million shares compared with Wednesday's total of 740.6 million. The value of traded shares stood at Rs40.3 billion.

Shares of 495 companies were traded. Of these, 283 stocks closed higher, 180 fell and 32 remained unchanged.

The Bank of Punjab emerged as the volume leader with trading in 66 million shares, gaining Rs1.25 to close at Rs36. Foreign investors sold shares worth Rs989.8 million, the National Clearing Company reported.