KSE-100 jumps 2.8% as global equities rise, oil prices slide

The Pakistan Stock Exchange (PSX) observed strong buying on Wednesday, with the benchmark KSE-100 Index surging over 4,300 points, as improved investor sentiment pushed the market higher.

Trading began on a mixed note, with the index moving within a narrow range during the early hours.

However, sentiment shifted decisively around mid-day, when aggressive buying emerged that continued well into the final hours of trading, enabling the KSE-100 to close near its intra-day high of 158,586.09.

At close, the benchmark index settled at 158,313.44, up by 4,347.08 points, or 2.82%.

“In a historic turn of events, Pakistan is emerging as a potential global peace broker,” said Behtari Capital on Wednesday.

Brokerage house Topline Securities said the positive trajectory was largely underpinned by easing international oil prices, which improved investor confidence across key sectors.

Market momentum was primarily driven by index-heavy constituents, including MEBL, FFC, SYS, LUCK, and HUBC, which collectively contributed 1,613 points to the benchmark index, offering substantial support to the overall upside, Topline said in its post-market report.

On Tuesday, PSX ended with moderate gains as thin volumes and profit-taking capped the upward momentum despite supportive global cues and easing geopolitical concerns. The KSE-100 closed at 153,966.36 points, gaining 1,225.99 points or 0.80%.

Globally, stocks rose, and oil fell on Wednesday on reports the US was seeking a month-long ceasefire in its war on Iran, and had sent a 15-point plan to Iran for discussion, raising hopes for a resumption of oil exports out of the ​Persian Gulf.

S&P 500 futures rose 0.9% in the Asian morning, European futures lifted 1.2%, and Brent crude futures fell about ‌6% to $98.30 a barrel.

Equity markets in Australia, South Korea and Japan rose roughly 2% in morning trade and gold, which investors had been selling to take profit after a long rally, rose 1.6%.

US President Donald Trump said on Tuesday that the US was making progress in negotiating ⁠an end to the war, including winning an important concession from Tehran, while a source confirmed that Washington had sent Iran a 15-point ​settlement proposal.

Israel’s Channel 12, quoting three sources, said the US was seeking a month-long ceasefire to discuss the 15-point plan.

Tehran has denied that direct ​talks have taken place.

Meanwhile, the Pakistani rupee registered marginal gain against the US dollar in the inter-bank market on Wednesday. At close, the local currency settled at 279.21, a gain of Re0.01 against the greenback.

Volume on the all-share index jumped to 612.36 million from 375.34 million recorded in the previous close.

The value of shares rose to Rs34.60 billion from Rs22.98 billion in the previous session.

Unity Foods Ltd was the volume leader with 72.63 million shares, followed by K-Electric Ltd with 36.66 million shares, and Fauji Cement with 26.07 million shares.

Shares of 489 companies were traded on Wednesday, of which 363 registered an increase, 77 recorded a fall, and 49 remained unchanged.