KARACHI: The Pakistan Stock Exchange (PSX) witnessed a sharp rally on Tuesday as the benchmark KSE-100 index surged 5,043.51 points, or 3.14 per cent, to close at 165,634.85 against the previous session’s close of 160,591.33. Market sentiment was revised on hopes for de-escalation of geopolitical tensions.
The index touched an intraday high of 165,763.81 and a low of 163,416.54, while the KSE-30 index rose 1,522.98 points, or 3.14 per cent, to settle at 49,987.1.Ali Najib, deputy head of trading at Arif Habib Ltd said the PSX closed on a strong note. The rally was driven by renewed optimism over potential US-Iran diplomatic engagement, reviving hopes of de-escalation and marking a sharp rebound from Monday’s sell-off triggered by failed talks and rising oil prices.
On the diplomatic front, Mohammed bin Salman extended financial support of $3 billion to Pakistan, providing a timely boost to sentiment and reinforcing bilateral ties.“While market chatter around a potential second round of US-Iran talks in Islamabad continues to circulate, official clarity is yet to arrive in this regard,” Najib said “However, ongoing diplomatic efforts and indications of possible follow-up negotiations are likely to keep sentiment supported and momentum elevated in the near term.”
Turnover in the ready market reached 824.54 million shares, up 10.94 per cent from 743.23 million shares in the prior session. Traded value rose 5.98 per cent to Rs36.34 billion from Rs34.29 billion, while market capitalisation increased 2.83 per cent to Rs18.31 trillion from Rs17.8 trillion.
Market breadth was strongly positive, with 389 companies advancing against 64 decliners and 34 unchanged out of 487 traded.PIA Holding Company Limited led the gainers, adding Rs1,036 to close at Rs18,450, followed by Unilever Pakistan Foods Limited, which rose Rs337.5 to Rs26,485. Tandlianwala Sugar Mills Limited topped the decliners, shedding Rs20.91 to close at Rs293.89, while Shahtaj Sugar Mills Limited fell Rs10.79 to Rs152.1.
Maaz Mulla, VP equity sales at Topline Securities Limited, said the local bourse staged an emphatic rebound, with sentiment turning decisively positive as supportive global cues provided much-needed relief. A sharp decline in international crude oil prices, coupled with renewed optimism surrounding the resumption of US-Iran negotiations after earlier inconclusive talks, served as key catalysts in restoring investor confidence.
The rally was further underpinned by fresh institutional flows and short covering, amplifying the upward momentum.
On the index front, key heavyweights including UBL, FFC, LUCK, ENGROH, HUBC and NBP collectively contributed 1,815 points to the benchmark’s advance, highlighting the index-heavy nature of the rally.
WorldCall Telecom led turnover with 100.19 million shares, gaining 7 paisas to close at Rs1.54. Bank of Punjab followed with 87.03 million shares, rising Rs2.87 to Rs31.66. Other most-active stocks were F. National Equities, Trust Brokerage, K-Electric, Sui South Gas, Pak Int. Bulk, Maple Leaf, Nishat ChunPower and Telecard Limited.In the futures market, 320 companies were traded, with 317 recording gains and 3 declining.
