PSX jumps 5,449 points in spectacular rally

Remittances, oil price fall, easing ME tensions bolster investor interest

KARACHI:

The Pakistan Stock Exchange (PSX) staged a powerful rally on Tuesday as investors returned from the long weekend with renewed buying interest, driving the KSE-100 index up by over 5,400 points amid support from strong remittances and easing international oil prices.

The benchmark index settled at 179,335.24, surging 5,448.56 points, or 3.13%. It remained in positive territory throughout the session and touched the intra-day high of 179,424.04, while the day's low was 176,273.72. The market reopened following a public holiday on Monday on account of Iqbal Day. The return of investors coincided with improving domestic and international developments, triggering across-the-board buying.

On the domestic front, strong remittance inflows helped reinforce investor confidence by supporting the country's external account. Meanwhile, the decline in international oil prices provided additional relief following concerns over Pakistan's exposure to imported energy and the potential impact of higher fuel costs on inflation and the balance of payments. Crude prices extended losses on Tuesday after President Trump downplayed the need for further military action, easing fears of continued supply disruptions in the Middle East.

According to Arif Habib Limited Deputy Head of Trading Ali Najib, the PSX extended its bullish momentum for another session, firmly reclaiming the 175k psychological mark. The market opened on a positive note, buoyed by a sharp correction in global oil prices following the Democrats' sweeping gains in the US midterm elections. WTI crude dipped below $87/barrel, while Brent fell to $96/barrel from the previous session's $102/barrel, marking a decline of over 8%, he said.

The sharp retreat in oil prices improved investor sentiment, which triggered broad-based buying and helped the benchmark index reclaim the 175k level for the first time since September 1, 2026. In the US, the Democrats' gains in elections fuelled optimism about a potential de-escalation in the Middle East and supported a broader recovery in the global risk appetite, Najib said.

UBL, Lucky Cement, Meezan Bank, Systems Ltd, Engro Holdings, Bank AL Habib, HBL, Hub Power, Oil & Gas Development Company and Pakistan Petroleum were the major contributors to the rally, collectively adding 1,981 points to the index. "Going forward, the market is likely to maintain its bullish momentum amid easing oil prices and improved global risk appetite. However, profit-taking may emerge at higher levels, keeping investors selective and cautious," he added.

Topline Securities observed that investor sentiment remained upbeat amid easing international oil prices and diminishing concerns over a potential escalation in geopolitical tensions between the US and Iran. UBL, FFC, HUBC, LUCK and MEBL emerged as the leading positive contributors, collectively adding 1,982 points to the index and providing significant support to the market's overall performance, it said.

Cumulatively, trading volumes decreased to 972.4 million shares from Friday's tally of 1.5 billion. The value of traded shares stood at Rs50.7 billion.

Shares of 501 companies were traded in the ready market. Of these, 363 stocks closed higher, 107 fell and 31 remained unchanged.

Cnergyico Pk was the volume leader with trading in 70.1 million shares, falling Rs0.75 to close at Rs11.35. Foreign investors bought shares worth Rs1.68 billion, the National Clearing Company reported.