PSX recovers 500 points on gold discovery

Mari Petroleum's Chagai copper-gold discovery helps offset early losses

KARACHI:

The Pakistan Stock Exchange (PSX) staged an intraday recovery on Friday, with the benchmark KSE-100 index gaining 500 points to close 0.28% higher at 177,873.88, as buying in oil and gas stocks, led by Mari Petroleum following its copper-gold discovery in Balochistan, helped offset early losses amid concerns over rising international oil prices.

At the close of trading, the benchmark KSE-100 index posted a gain of 500.11 points, or 0.28%, and settled at 177,873.88.

A Topline market review highlighted that the KSE-100 index staged a notable intraday recovery, closing at 177,873, up 500 points (+0.28%). The benchmark remained volatile throughout the session, swinging between an intraday high of 1,910 points and a low of 508 points, reflecting mixed investor sentiment.

Market sentiment received a significant boost towards the latter half of the session following material news from Mari Petroleum (MARI). Through its wholly owned subsidiary, Mari Minerals, the company announced a new porphyry copper-gold discovery at the East Siah Diq (ESD-1) target in Chagai, Balochistan. The development sparked renewed investor interest and helped turn sentiment positive, providing fresh impetus to the market's recovery.

The discovery underscores the potential of Pakistan's mineral resources and adds to the growing optimism surrounding the country's mining and exploration sector.

On the contribution front, MARI, LUCK, PPL, PSEL and FATIMA emerged as the leading positive contributors, collectively adding approximately 722 points to the benchmark index and providing substantial support to the market's overall performance.

Meanwhile, market participation remained robust, with total traded volume reaching approximately 1,042 million shares, while traded value stood at around Rs31 billion.

KTrade stated that the KSE-100 index closed at 177,873 points, gaining 500 points (+0.28% DoD), while total traded volume stood at 195 million shares. The market remained mixed early in the first session amid renewed concerns over rising oil prices. Brent crude surged to around $96/bbl following US President Donald Trump's remarks that the US does not need a deal with Iran and that JD Vance should focus on domestic matters.

However, the market gradually recovered as the oil and gas sector drove the positive momentum. The rally was largely concentrated in a handful of stocks, particularly MARI, LUCK and PPL. MARI emerged as the standout performer, trading close to its upper circuit during the session, while these stocks provided the major support to the benchmark.

Going forward, market direction will largely depend on developments over the weekend, particularly on the geopolitical front and any potential progress in US-Iran negotiations.

Overall trading volume was recorded at 1.04 billion shares compared with the previous session's tally of 1.07 billion. The value of shares traded during the day was Rs31.0 billion. Shares of 497 companies were traded. Of these, 284 stocks closed higher, 184 fell and 29 remained unchanged.

WorldCall Telecom was the volume leader with trading in 303 million shares, gaining Rs0.13 to close at Rs1.38. It was followed by Kohinoor Spinning with 59.5 million shares, gaining Rs0.34 to close at Rs5.90, and LSE Fin. Services with 46.8 million shares, gaining Rs0.28 to close at Rs2.64.

Foreign investors bought shares worth Rs179 million, the National Clearing Company reported.