Buying returns to bourse, KSE-100 gains over 950 points
- Benchmark index settles at 173,155.79
A day after intense selling pressure, buying interest returned to the Pakistan Stock Exchange (PSX) amid positive cues on both the domestic and political fronts, with the benchmark KSE-100 Index closing with a gain of over 950 points on Tuesday.
The KSE-100 Index opened on a strong note, surging toward the intra-day high of 175,298.11, indicating aggressive buying interest.
However, after the initial rally, the market struggled to sustain those levels and moved sideways. The index saw a steep decline during mid-day, dropping to an intra-day low of 172,837.79.
At close, there was a modest recovery, helping the benchmark index settled at 173,155.79, up 959 points or 0.56%.
“The local bourse experienced a highly volatile session, with investors trading cautiously amid mounting geopolitical uncertainty. Market participants remained fixated on the anticipated second round of negotiations between the United States and Iran, expected to commence in Pakistan, while conflicting signals and rising tensions kept sentiment on edge,” brokerage house Topline Securities said in its post-market report.
“Despite the jittery backdrop, the benchmark index displayed notable resilience…The choppy price action highlighted a classic tug-of-war between bullish momentum and risk aversion, as investors weighed hopes of diplomatic progress against the risk of further escalation,” it added.
On the index front, key heavyweights including MEBL, UBL, PSO, BAHL, HMB, and ATRL collectively contributed 757 points to the benchmark’s advance, underscoring the index-heavy nature of the rally and continued institutional interest in blue-chip names, Topline said.
In a key development, the State Bank of Pakistan (SBP) said on Tuesday it had received funds of $1 billion from the Ministry of Finance, Kingdom of Saudi Arabia.
“While the morning was colored by diplomatic uncertainty, fresh liquidity is providing a rock-solid floor for the index,” said Behtari Capital.
It added that the $1 billion received is a massive psychological boost, proving that Pakistan’s reserve buffer is being rebuilt in real-time.
“With $1 billion in fresh cash… and the Saudi extension protecting our reserves through 2028, the macro-outlook is far more stable than the headlines suggest.”
On Monday, PSX ended the first trading session of the week on a negative note, as cautious investor sentiment prevailed amid escalating geopolitical tensions. The benchmark KSE-100 Index plunged by 1,742 points to close at 172,197.
Internationally, stocks rebounded in early trading in Asia on Tuesday as markets took heart from reports Iran is considering attending peace talks with the United States in Pakistan, with renewed bets on AI underpinning demand.
Investors were also keeping their eyes on a Senate confirmation hearing later for Kevin Warsh, U.S. President Donald Trump’s nominee to lead the Federal Reserve, which Trump has repeatedly criticised for failing to cut rates sooner and more aggressively.
MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.9%, as South Korea’s Kospi rose 2.1% to hit a fresh record high for the first time since the Iran war began. S&P 500 e-mini futures were up 0.1%, while Brent crude slipped 0.4% to $95.09 a barrel.
Japan’s Nikkei 225 tacked on 1.2%, while Australian shares bucked the trend, slipping 0.3%.
An uneasy ceasefire between the United States and Iran frayed after the U.S. announced the seizure of an Iranian cargo ship, drawing vows of retaliation from Tehran. Iran said over the weekend it would skip a second round of negotiations, though a senior official later told Reuters the country may yet send delegates to talks expected in Islamabad.
Meanwhile, the Pakistani rupee registered marginal gain against the US dollar in the inter-bank market on Tuesday. At close, the local currency settled at 278.90, a gain of Re0.01, against the greenback.
Volume on the all-share index dropped to 1,165.25 million from 1,296.21 million recorded in the previous close.
The value of shares decreased to Rs54.94 billion from Rs65.27 billion in the previous session.
Cnergyico PK was the volume leader with 83.67 million shares, followed by B.O.Punjab with 82.48 million shares, and Pak Refinery with 67.57 million shares.
Shares of 489 companies were traded on Tuesday, of which 279 registered an increase, 165 recorded a fall, and 45 remained unchanged.
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