PSX gains 465 points as buying returns across key sectors
As a result of extensive campaign and persistent follow-up, by the end of the deadline, PSX had received a total of 17 EOIs from foreign and local investors. — FILE PHOTO
The Pakistan Stock Exchange (PSX) closed the session on Wednesday on a positive note, with the benchmark KSE-100 Index gaining 464.53 points, or 0.26%, to settle at 180,311.22 points, as investors returned to equities and accumulated stocks across key sectors.
The index remained in positive territory throughout the session, trading between an intraday high of 180,901.27 and a low of 179,920.10 points.
Buying interest was particularly evident in oil and gas exploration companies, which provided the strongest support to the benchmark. Automobile assemblers, cement, commercial banks, fertiliser, oil marketing companies and power generation stocks also attracted buying.
Market sentiment was supported by expectations of easing geopolitical tensions after Pakistan indicated that the United States and Iran were close to an arrangement that could help ease tensions affecting energy markets. Defence Minister Khawaja Asif made the remarks in an interview with Bloomberg.
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The development came against a backdrop of renewed concerns in global oil markets. Oil prices rose on Wednesday after attacks on two ships in the Strait of Hormuz and Bab el-Mandeb Strait heightened fears of disruptions to Middle East supplies.
However, gains in crude prices were tempered by industry data pointing to a build-up in US crude inventories, which could weigh on the bullish momentum in oil markets.
The positive close marks a return of buying interest at the PSX after the benchmark had slipped below the 180,000-point level in the previous session.
KTrade Securities wrote in its market wrap that the KSE-100 Index closed at 180,311 points, gaining 464 points (+0.26%) day-on-day, as the market staged a modest recovery after recent weakness.
Read More: PSX dips 1,464 points on oil jitters
Trading activity remained relatively subdued. Market participation remained mixed, with oil and gas, cement and power sectors providing support. Pakistan Oilfield, Mari Energies, Habib Bank and Hub Power were among the key positive contributors, helping lift the benchmark during the session.
On the downside, selling pressure was visible in Meezan Bank, Engro Fertiliser and Oil & Gas Development Company that weighed on overall market breadth.
The market is likely to remain range-bound with a cautious bias, with investors keeping an eye on oil prices and geopolitical developments alongside domestic macroeconomic and corporate catalysts, Ktrade predicted.
Overall, trading volume decreased to 744.2 million shares against Tuesday’s total of 860.2 million. The value of traded shares stood at Rs32.1 billion. In the ready market, shares of 491 companies were traded. Of these, 249 stocks closed with gains, 211 fell, and 31 remained unchanged. Cnergyico PK was the volume leader, trading 67.8 million shares, rising Rs0.27 to close at Rs13.11.