PSX gains 1,900 points, maintaining renewed buying

The Pakis­tan Stock Exchange (PSX) on Wednesday maintained its renewed bullish momentum as the market gained over 1,900 points.

The benchmark KSE-100 index gained 1,934.74 points or 1.19 per cent to close at 164,831.42 points from the previous close of 162,896.68.

The market dipped to an intraday low of 162,895.74 shortly after opening, eventually reaching an intraday high of 165,081.69 at 3:20pm, gaining 2185 points from yesterday.

Topline Securities Limited noted that “investor sentiment rebounded sharply” and that the market experienced significant intraday movement.

“Improved market confidence was largely driven by easing tensions between Iran and the United States, alongside a decline in international oil prices,” it pointed out.

The positive performance was mainly supported by heavyweight stocks, including Meezan Bank Limited (MEBL), Fauji Fertiliser Company Limited (FFC), United Bank Limited (UBL), Engro Holdings Limited (ENGROH), and Pakistan Petroleum Limited (PPL), which “collectively added 836 points to the benchmark index and played a pivotal role in sustaining the market’s bullish momentum”, Topline said.

“Market participation with total traded volume reaching 386 million shares, while total turnover stood at Rs20.1 billion. SSGC emerged as the volume leader, with 25m shares,” it added.

Arif Habib Limited noted KSE-100 has “tested the Monday range high at 165,000, which is a key level, and is currently -0.46pc [week-on-week] and remains in a consolidation profile”.

It said the US-Iran situation would “continue to dictate market direction”.

On Tuesday, the PSX snapped a seven-session losing streak, gaining 1,091.66 points as buying interest returned to the market.

The market sentiment has remained buoyant this week amid encouraging developments in the ongoing negotiations between the US and Iran.

Additionally, a slight decline in international oil prices provided further comfort to investors by easing inflationary worries and strengthening expectations of macroeconomic stability.