KSE-100 ends higher as Iran delegation news triggers late rally

A volatile trading session was observed at the Pakistan Stock Exchange (PSX) as investors closely monitored geopolitical developments, with the benchmark KSE-100 ending the week’s last session up by nearly 1,500 points on Friday.

The session started on a slightly weak note, with the benchmark index dipping early and touching the intra-day low of 166,380.71.

The real shift came in the second half of the trading session, where strong buying momentum kicked in. The reversal in trend came amid reports that the Iranian delegation led by Foreign Minister Abbas Araghchi is expected to arrive in Islamabad tonight.

At close, the benchmark index settled at 170,672.04, up by 1,498.67 points or 0.89%.

“Investors reacted to delays in US-Iran peace negotiations, with the US continuing to intensify pressure through its naval blockade. However, recovery was observed during the second half of trading session as investors reacted positively to news that Iran Foreign Minister Abbas Araghchi is expected to arrive in Pakistan’s capital on Friday night for a second round of peace talks with the US,” brokerage house Topline Securities said in its post-market report.

Top positive contribution to the index came from MEBL, UBL, OGDC, NBP and BOP, as they cumulatively contributed positive 765 points to the index; on the other hand, BAHL, FABL MCB, HMB and EFERT contributed negative 158 points to the index, it added.

In a key development, Pakistan completed the repayment of $3.45 billion to the United Arab Emirates (UAE), the central bank confirmed on Friday.

On Thursday, bears dominated the PSX as investors stayed cautious amid prevailing uncertainty and awaited clearer signals on geopolitical developments. The benchmark KSE-100 Index declined by 2,406 points or 1.40%, to close at 169,173.38 points.

Internationally, Asia shares struggled on Friday, and oil prices resumed their rise, as a shaky ceasefire in the Middle East war and stalled ​US-Iran peace talks gave investors little to cheer.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.3% and was set to end ‌the week with a 0.8% gain, while Japan’s Nikkei added 0.45% and stocks in South Korea, China and Hong Kong fell.

Nasdaq futures and S&P 500 futures advanced 0.6% and 0.1%, respectively, after closing lower in the cash session overnight, while EUROSTOXX 50 futures were down 0.65% and FTSE futures fell 0.9%.

The mixed showing underscored the tense market mood as investors this week seesawed ​between hope for an imminent end to the war and fear that it might not come soon.

Iran on Thursday flaunted its tightened grip over the key Strait of Hormuz with a video of commandos in a speedboat storming a huge cargo ship, while ​U.S. President Donald Trump said he had ordered the Navy to “shoot and kill” Iranian boats laying mines in the strait, and step up demining activity.

Trump’s comments came ​just days after he said he would indefinitely extend what had been a two-week ceasefire with Iran to allow for further peace talks.

Meanwhile, the Pakistani rupee registered marginal gain against the US dollar in the inter-bank market on Friday. At close, the local currency settled at 278.85, a gain of Re0.01 against the greenback.

Volume on the all-share index decreased to 1,192.17 million from 1,321.51 million recorded in the previous close.

The value of shares rose to Rs39.68 billion from Rs30.84 billion in the previous session.

F. Nat.Equities was the volume leader with 128.29 million shares, followed by B.O.Punjab with 112.67 million shares, and Unity Foods Ltd with 98.16 million shares.

Shares of 480 companies were traded on Friday, of which 247 registered an increase, 196 recorded a fall, and 37 remained unchanged.