PSX stays in the black on US-Iran talks

KSE-100 gains 830 points, aided by easing crude prices and conflict resolution hopes

KARACHI:

A calmer geopolitical tone set the stage for a modest rally at the Pakistan Stock Exchange (PSX) on Wednesday, where the KSE-100 index stayed firmly in the green throughout the session over hopes for a diplomatic breakthrough between the US and Iran coupled with softer oil prices.

The benchmark index gained 830.43 points, or 0.48%, to settle at 172,232.51. Investor interest was supported by reports that US-Iran talks could pave the way for a diplomatic resolution at the UN General Assembly, reducing fears of further disruption to global crude supplies.

Oil prices remained near their lowest level in more than two weeks as improving Gulf supplies weighed on the market. Sustained stock buying led to gains across major sectors including auto assemblers, cement, commercial banks, oil and gas exploration, oil marketing and refineries.

KTrade Securities observed that the market stood positive, led by fertiliser, commercial banks, refinery and oil & gas sectors. Fauji Fertiliser, UBL, Meezan Bank and Attock Refinery were among the key contributors, while volumes were concentrated in Cnergyico, K-Electric, SSGC and Pakistan International Bulk Terminal.

Sentiment improved following the sharp overnight decline in international oil prices. Brent crude traded near $98 a barrel, while WTI fell below the $90 threshold, easing inflation concerns and aiding recovery across oil & gas and broader market segments. Overall, the session reflected a recovery in sentiment, with key blue-chip names providing support. "Market direction will stay sensitive to oil prices, geopolitical developments and foreign/local flows," KTrade said.

The market maintained a buoyant momentum, with investors receiving a boost from developments on the geopolitical front following a meeting between the US and Iranian delegations on sidelines of the UN General Assembly, where both sides reportedly described the discussions as constructive. The development helped ease geopolitical concerns and supported broader market sentiment, said Ali Najib, Deputy Head of Trading at Arif Habib Limited.

On the domestic front, the arrival of an International Monetary Fund (IMF) staff mission in Pakistan to commence negotiations for the fourth review of the Extended Fund Facility (EFF) and the third review of the Resilience and Sustainability Facility (RSF) provided an additional impetus to investor confidence.

In the latter half of the session, the refinery sector witnessed notable buying interest amid rumours that the refinery policy agreement signing may take place on Thursday. The market talk triggered renewed interest in refinery stocks, with investors positioning themselves ahead of an announcement about the long-awaited refinery upgrades."Going forward, the market is expected to remain volatile amid selective buying if geopolitical tensions continue to ease and oil prices move lower," Najib added.

According to Ismail Iqbal Securities, the KSE-100 closed on a positive note, supported by improved investor sentiment and declining oil prices, where buying was concentrated in select sector-specific stocks. Fertiliser, banks and E&P sectors were the major contributors, adding 497 points to the index, it noted.

Cumulatively, trading volumes increased to 773.6 million shares versus Tuesday's total of 641.8 million.

In the ready market, shares of 496 companies were traded. Of these, 262 stocks closed higher, 196 fell and 38 remained unchanged.

Cnergyico was the volume leader with trading in 150.3 million shares, rising Rs1.11 to close at Rs14.31. Foreign investors sold shares worth Rs547.4 million, the National Clearing Company reported.