KARACHI: Amid optimism about a likely settlement of the US-Iran conflict and easing oil prices, and ongoing diplomatic efforts, the Pakistan Stock Exchange (PSX) continued its recovery rally on Tuesday as investors rushed to cherry-pick, pushing the benchmark KSE-100 index above the 168,000 level.
Topline Securities Ltd said the index extended its upward momentum, gaining 1,454.80 points, or 0.87 per cent, to close at 168,018.87. The benchmark recorded a strong bullish session, touching an intraday high of 1,905 points as renewed buying interest lifted overall market sentiment.
The positive momentum was driven primarily by a decline in international crude oil prices, amid growing optimism about potential deal negotiations between the USand Iran. Hopes of easing geopolitical tensions helped ease concerns about regional uncertainty and improved investor risk appetite.
Fauji Fertiliser Company, EngroHoldings, Pakistan Services, Meezan Bank and Engro Fertiliser were the major contributors to the index’s gains, collectively adding approximately 701 points to the benchmark and highlight-ing strong support from heavyweight stocks.
Market activity also improved compared to the previous session, with trading volume rising 16.66pc to 517.34 million shares and turnover jumping 16.76pcto Rs20.7bn. Cnergyico PK topped the volume chart with 114m shares.
Ali Najib, Deputy Head of Trading at Arif Habib Ltd, said the market extended the overnight upsurge from the start oftrading, as the index opened on a strong note amid hopes of a resolution to the US-Iran conflict, with fresh diplomatic efforts reviving optimism and international oil prices continuing to ease.
As a result, the market saw across-the-board buying, especially in bluechip stocks.
Both the US and Iranian sides are reviewing fresh mediation proposals, with Qatar engaging Tehran to avert renewed military escalation. Moreover, global markets are focused on potential shifts in congressional power in the aftermath of the ongoing US midterm election.
Analysts expect markets to remain volatile amid evolving US-Iran developmentsandbroader geopolitical uncertainty.
Progress in diplomatic negotiations may bolster sentiment, though investors remain cautious ahead of the US election results.