Buying momentum continues at PSX, KSE-100 gains 1.2%

Buying momentum continued at the Pakistan Stock Exchange (PSX) amid renewed hopes of peace after US President Donald Trump held off on a fresh attack on Iran, with the benchmark KSE-100 Index closing with a gain of 1.2% on Monday.

Trading opened on a highly positive note, with the index quickly surging to its intra-day high of 178,985.94 within the first few minutes of the session.

However, the early rally triggered profit-taking, causing the benchmark to erase a large portion of its gains. The market then stabilised and moved sideways through the late morning, hovering in the 178,200–178,500 range.

Selling pressure intensified after midday, dragging the index steadily lower to an intra-day low of 177,759.88. The decline, however, was short-lived, and strong late-session buying helped the benchmark recover most of the lost ground.

At close, the benchmark index settled at 178,200.02, up by 2,105.91 points or 1.20%.

“The local bourse staged a strong comeback as bulls firmly dominated the trading session, fueled by optimism surrounding the possibility of renewed diplomatic talks between the US and Iran. Easing geopolitical concerns led to a sharp decline in international oil prices, boosting investor sentiment and triggering broad-based buying across key sectors,” brokerage house Topline Securities said in its post-market report.

“The rally reflected renewed risk appetite as investors welcomed signs of easing regional tensions and softer energy prices.”

On the index contribution front, FFC, MEBL, LUCK, PPL, and ENGROH emerged as the top contributors, collectively adding approximately 699 points to the benchmark index, Topline said.

During the previous week, PSX rebounded strongly, snapping a three-week losing streak as easing geopolitical tensions following the cessation of hostilities between the United States and Iran significantly improved investor sentiment.

The decline in international Brent crude oil prices by around 9% week-on-week to below $90 per barrel further boosted risk appetite, helping the benchmark KSE-100 Index recover more than 5,000 points over the week.

According to the weekly market review, the benchmark KSE-100 Index gained 5,072.93 points, or around 3% week-on-week, to close at 176,094.13 points.

Internationally, oil prices skidded, and stocks ​wobbled on Monday as hopes of peace in the Middle East grew, while the ‌yen jumped suddenly after the US and Japan confirmed joint intervention to prop up the frail currency.

Brent crude futures sank more than 6% to $82.41 after US President Donald Trump said talks with Iran will happen on Monday.

He had earlier called ​off an imminent attack on Iran to reach a deal to reopen the Strait of ​Hormuz and resolve the impasse over Tehran’s nuclear capabilities.

S&P 500 futures rose 0.4% while ⁠Nasdaq futures gained 0.6%. But Japan’s Nikkei dipped 1%, and South Korea’s KOSPI slid 3.6% after ​a turbulent July in which it slumped 22%.

MSCI’s broadest index of Asia-Pacific shares outside Japan was down ​1% in early trading.

Meanwhile, the Pakistani rupee extended its marginal gains, appreciating 0.01% against the US dollar on Monday. The local unit closed the day at 277.77, a gain of Re0.03 against the greenback.

Volume on the all-share index decreased to 785.36 million from 880.95 million recorded in the previous close.

The value of shares rose to Rs33.14 billion from Rs24.96 billion in the previous session.

Trust Brokerage was the volume leader with 113.32 million shares, followed by TPL Properties with 83.71 million shares, and Cnergyico PK with 68.96 million shares.

Shares of 493 companies were traded on Monday, of which 305 registered an increase, 152 recorded a fall, and 36 remained unchanged.