KARACHI: The KSE-100 index posted a dramatic surge on Wednesday, soaring 6,962.29 points, or 4.23 per cent, to close at 171,704.76 against the previous close of 164,742.47. The index touched an intraday high of 172,088.58 and a low of 167,354.44.
The market sentiment improved on encouraged geopolitical developments and hopes for the revival of peace talks in Islamabad. The KSE-30 index jumped 2,242.85 points, or 4.53 per cent, to settle at 51,734.35.
Ali Najib, deputy head of trading at Arif Habib Ltd, said the PSX witnessed a strong rebound. The rally was driven by easing geopolitical tensions and a marked improvement in investor sentiment. Optimism was underpinned by encouraging developments in Iran-US relations and efforts to stabilise key global energy routes, which triggered broad-based buying from the outset.
“Going forward, the potential second round of US-Iran talks in Islamabad remains a key catalyst for market direction. While no formal schedule has been confirmed, ongoing diplomatic efforts and backchannel engagement suggest negotiations are likely to continue in the near term,” said Najib. “As a result, market sentiment is expected to stay broadly supported; however, it will remain highly sensitive to headlines and incremental developments, with each update carrying the potential to significantly influence near-term momentum and investor positioning.”
Ready market turnover more than doubled to 1.20 billion shares, up 165.28 per cent from 453.22 million in the prior session. Traded value surged 176.51 per cent to Rs63 billion from Rs22.79 billion. Market capitalisation rose 3.94 per cent to Rs18.89 trillion from Rs18.17 trillion.
Market breadth was overwhelmingly positive, with 395 stocks advancing, 67 declining and 27 unchanged out of 489 traded. PIA Holding Company Limited-B and Unilever Pakistan Foods Limited led the gainers, rising Rs296 and Rs137.58 to close at Rs17,001.00 and Rs26,266.67, respectively. On the downside, The Premier Sugar Mills shed Rs34.51 to Rs511.45, while Faisal Spinning Mills Limited declined Rs18.7 to Rs340.49.
According to Topline Sales Desk, the market staged a sharp rally as sentiment turned decisively positive following US President Donald Trump’s signal of progress on a potential Iran deal, easing tensions around the Strait of Hormuz.
Momentum received an additional boost during the session when Prime Minister Shehbaz Sharif reinforced the positive narrative via a statement appreciating Trump’s leadership and the timely de-escalation efforts. The endorsement further cemented investor confidence, adding fuel to the ongoing rally.
Meanwhile, a sharp decline in international oil prices provided a strong tailwind to the market, alleviating concerns over external account pressures and inflationary risks. The drop in crude acted as a catalyst for cyclical plays, amplifying buying interest and sustaining the upward trajectory.
Index heavyweights including UBL, LUCK, FFC, PPL, OGDC and ENGROH led the charge, collectively contributing 2,920 points to the index. Hascol Petroleum topped the turnover table with 103.47 million shares, gaining Rs1.14 to Rs22.69. K-Electric followed with 80.51 million shares, rising 34 paisas to Rs7.99. The other most-traded stocks were Bank of Punjab, Cnergyico PK, WorldCall Telecom, Pak Int. Bulk Terminal, Sui Southern Gas, Dost Steels, First National Equities and Fauji Cement. In the futures market, 339 contracts were traded, with 334 increasing and 5 decreasing.
