Foreign funds would divert their liquidity into buying Pakistan’s stocks. This would merely increases prices of shares and be profitable for those who already hold stocks. PHOTO: FILE
KARACHI:
A strong wave of buying swept through the Pakistan Stock Exchange (PSX) on Wednesday as easing geopolitical concerns and expectations of a drop in oil prices kept investors upbeat.
While the overall trend remained firmly positive, some volatility was witnessed during midday trading. Market momentum strengthened later, where the benchmark KSE-100 index gradually gained 3,424 points by 2pm. During the day, the index reached the intra-day high of 158,586 and low of 155,200. By the close, the bourse had climbed by 4,347.08 points, or 2.82%, and settled at 158,313.45.
Investor sentiment drew strength from reports that Pakistan may assume a mediatory role between the US and Iran to resolve the regional dispute. The market saw stock buying in sectors such as auto assemblers, cement, commercial banks, fertiliser, oil and gas exploration, oil marketing, power generation and refineries.
The KSE-100 surged 2.82% and stood above October lows near the 157k level, reinforcing signals that a major low may have been formed, said Arif Habib Limited (AHL) in its report. Meezan Bank (+6.16%), Fauji Fertiliser (+2.18%) and Systems Limited (+8.07%) contributed the most to the index gains while Service Industries (-1.95%), Colgate-Palmolive (-2.15%) and Highnoon Laboratories (-0.95%) emerged as the biggest index drags, it said.
Globally, oil prices were falling and a diplomatic push to end the US-Israel and Iran war was gathering pace as Washington drafted a 15-point plan to bring the conflict to a close. Also, the talk of Islamabad taking centre stage in mediation efforts would likely lead to additional positive outcomes for Pakistan, AHL mentioned. The next market move to watch for is the 200-day moving average around 158.7k, which may act as a support zone, it added.
KTrade Securities noted that the KSE-100 index staged a powerful rebound, closing up 4,347 points (+2.82%), as sentiment flipped decisively positive on improving macro cues and easing geopolitical worries. The move carried a strong momentum, with buyers stepping in aggressively and lifting the index out of its consolidation phase.
The rally was broad-based, led by heavyweight sectors where commercial banks, cement, oil & gas, and technology names all contributed meaningfully. The key index support came from strong performances by Meezan Bank, UBL and MCB Bank, while cement stocks including Fauji Cement and Lucky Cement also remained firm. In the energy sector, Hub Power and Oil & Gas Development Company contributed to the upside, whereas Systems Limited maintained its positive momentum in the technology space, KTrade said.
